FM Sitharaman presents Budget 2023: Income tax slabs changed under new tax regime
Finance Minister Nirmala Sitharaman delivered the budget speech today at 11 AM. This will be the last full Budget of the second Modi government ahead of general elections in 2024.
Finance Minister Nirmala Sitharaman concludes the Budget 2023 presentation with a 1 hour 35 minute long speech.
The New Tax Regime will now be the default tax regime, but citizens can still avail of benefits under the old tax regime on opt-out basis: FM
The government has proposed to reduce the highest surcharge rate from 37% to 25% under new tax regime: FM Sitharaman
Revised tax slabs under New Tax Regime:
1) Under the new tax regime, income of Rs 0-3 lakh is nil.
2) Income above Rs 3 lakh and up to Rs 5 lakh to be taxed at 5 percent under the new regime.
3) Income of above Rs 6 lakh and up to Rs 9 lakh to be taxed at 10 percent under the new regime.
4) Income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20 percent under the new regime.
5) Income above Rs 15 lakh to be taxed at Rs 30 percent.
Income rebate limit to be increased to Rs 7 lakh from Rs 5 lakh in the New Tax Regime: FM
I propose to reduce the number of basic custom duty rates on goods other than textiles and agriculture, from 21 to 13. As a result, there are minor changes in the basic custom duties, cesses & surcharges on some items including toys, bicycles, automobiles: FM
The govt proposes customs duty exemptions on the import of capital goods and machinery required for lithium-ion batteries. The government also proposes to increase customs duty on silver to align with duty on gold and platinum. Basic customs duty on toys to be changed, TVs and mobile phones to get cheaper in wake of customs duty relief on parts, while duty on cigarettes will be increased by 16 per cent.
Indirect tax proposals to promote exports, boost domestic manufacturing and encourage green mobility: FM
Part A of Budget 2023 speech concludes. FM moves on to Part B, begininng with Indirect Tax Proposals.
FM Sitharaman fixes fiscal deficit for 2023-24 at 5.9%. "I reiterate my intention to bring the fiscal deficit below 4.5% of GDP by 2025-26," says FM.
Fiscal management: 50 year interest free loan to states, parts of outlay will be linked to following purposes: scrapping old govt vehicles, urban planning reforms, housing for police personnel, state share of capex of central schemes: FM
Mahila Samman Bachat Patra: One time new small savings scheme/certificate will be made available for a 2 year period upto March 2025. Deposit of Rs 2 lakh for a tenor of 2 year with fixed interest rate of 7.5 per cent, the FM says.
The government will set up a National Financial Information Registry to serve as a central repository of financial and ancillary information, said Finance Minister Nirmala Sitharaman.
50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism: FM Nirmala Sitharaman
To provide stipend to 47 lakh youth in 3 years, direct benefit transfer under a pan-India apprenticeship scheme will be rolled out: FM
The government will launch Pradhan Mantri Kaushal Vikas Yojana 4.0, said FM Nirmala Sitharaman. In order to skill the youth for international opportunities, 30 Skill India International Centres, Skill India Digital Platform will be set up across different States: FM
Over the next 3 years, one crore farmers will get assistance to adopt natural farming. 10,000 bio input resource centres will be set up: FM Nirmala Sitharaman
This budget provides for 35,000 cr for priority investment towards energy transition and net-zero objectives: FM
FM allocated Rs 19,700 crore to the National Hydrogen Mission. The objective is to reach the hydrogen production capacity of 5 metric million tonnes by 2030.
Lab Grown Diamonds will be introduced to encourage their indigenous production, R&D grant to be given to one IIT for 5 years: FM
5G services will be enhanced. 100 labs for developing applications using 5G services will be set up in engineering institutions, the labs will cover smart classrooms, precision farming, and healthcare applications: FM
To enable more FinTech innovative services, the scope of documents available in DigiLocker for individuals will be expanded: FM
For business establishments required to have Permanent Account Number, the PAN will be used as a common identifier for all Digital Systems of specified government agencies. Digilocker will be used as the one stop KYC maintenance system: FM Nirmala Sitharaman
FM introduces the Centres of Excellence for Artificial Intelligence: For realising the vision of 'Make AI in India and Make AI work for India', three centres of AI will be set up in top educational institutions which will develop cutting-edge solutions in the areas of agriculture, health, and sustainable cities.
Under Mission Karmayogi, capacity building plans for civil servants are implemented. The govt. has launched an integrated online training program called 'iGot Karmayogi' to provide continuous learning opportunities and upskilling of the govt. servants: FM
All cities and towns will be enabled for 100 percent mechanical desludging of septic tanks and sewers to transition from 'manhole to machine-hole' mode: FM
Fifty additional airports, heliports, water aerodromes, and advanced landing grounds will be revived for regional air connectivity: FM
50-year interest free loan to State governments extended for one more year: FM
Capital outlay of Rs 2.40 lakh crore will be provided for railways; 9x over FY14: FM
Support for poor prisoners who are unable to pay bail or penalty will be provided financial assistance: FM
The outlay for PM Awaas Yojana will be enhanced by 66% to over Rs 79,000 crores: FM
Fifty additional airports and heliports will be revived for regional air connectivity: FM
Eklavaya Model Residential Schools -in the next 3 years the Centre will recruit 38,800 teachers and support staff for 740 schools serving 3.5 lakh tribal students: FM
To improve social-economic conditions of the Particularly Tribal Groups, PMPBTG Development mission will be launched, to saturate PBTG habitations with basic facilities. Rs 15,000 cr to be made available to implement scheme in next 3 years: FM
The government has enhanced capital expenditure (capex) outlay by 33% to Rs 10 lakh crore which would be 3.3% of GDP. The amount is almost 3 times the outlay that was made by the government in 2020: FM
The government will launch a sub-scheme under PM Matsya Sampada Yojana with an outlay of Rs 6,000 crore to further enable those involved in fisheries: FM
PM Vishwa Karma Kaushal Samman will be introduced -- package of assistance for traditional artisans and craftspeople has been conceptualized, will enable them to improve quality, scale and reach of their products, integrating with MSME value chain: FM
In election year, Karnataka to receive central funding for irrigation. Rs 5300 crore allotted for Upper Bhadra irrigation project in Karnataka: FM
The Finance Minister announces a mission to eliminate Sickle Cell Anemia, prevalent among Scheduled Tribes by 2047.
An agriculture accelerator fund to encourage agritech startups by young entrepreneurs in rural areas. Fund will focus on bringing innovative solutions for challenges faced by farmers: FM
The government will launch the Atmanirbhar Clean Plant Programme to improve availability of disease-free quality planting material for high-value horticultural crops at an outlay of Rs 2,200 crore: FM
Economy has become a lot more formalised as reflected by doubling of EPFO membership: FM
Economic agenda focuses on three things: facilitating ample opportunity for citizens, especially the youth, providing a strong impetus to growth and job creation and third stabilising the macro economy: FM
The FM lists seven priorities for Budget 2023:
1) Inclusive development
2) Reaching the last mile
3) Infra & investment
4) Unleashing the potential
5) Green growth
6) Youth power
7) Financial sector