Union Budget 2024 - Highlights 

On 3 February 2023, Union Finance Minister Nirmala Sitharaman announced the Union Budget for 2023-24.

Here are some of the key highlights -

• The per capita income has more than doubled to Rs. 1.97 lakh in the past 9 years.

• India is now the 5th largest economy in the world.

• In the last year alone, 7,400 crore digital payments of Rs. 126 lakh crore have taken place via UPI.

• The seven priorities of the budget (‘Saptarishi’) are as follows -

  • Inclusive development

  • Reaching the last mile

  • Investment & infrastructure

  • Unleashing potential

  • Green growth

  • Youth power

  • Financial sector

• There have been a few changes made to the tax slabs which could positively impact taxpayers.

• A mission to eliminate Sickle Cell Anaemia is to be launched.

• In order to aid animal husbandry, fisheries, and dairy industries, Rs. 20 lakh crore agricultural credit will be released.

• To increase ease of doing business, PAN will be used as a common identifier for digital systems of specific government agencies.

• The fiscal deficit in 2023-24 is expected to 5.9% of the GDP

• The number of custom duty rates on goods (except textiles and agriculture) has been reduced to 13 from 21 previously.

Provisions Under Various Sectors

Impact on Income Tax

• The basic exemption limit has been hiked to Rs. 3 lakh from Rs. 2.5 lakh and there have been changes in the tax slab as well. 

  • This is applicable only for the new tax regime which is set to become the default option.

  • However, taxpayers have the option of choosing the old tax regime if they wish to.

• No tax for income up to Rs. 7.5 lakh under the new tax regime (including the Standard Deduction).

• The Standard Deduction of Rs. 50,000 for salaried individuals is applicable even for those choosing the new tax regime.

• Under the new regime, the rebate limit has been increased to Rs. 7 lakhs from Rs. 5 lakhs previously.

• Proposals related to direct tax have been put forth to reduce burden on taxpayers and to maintain stability and continuity of taxation.

• A Common IT Return Form will be rolled out so as to improve services for taxpayers. Additionally, the grievance redressal system will also be improved.

• If your income is Rs. 15 lakh, you will only have to pay Rs. 1.5. lakh as tax.

• If you are a high-income earner, the highest surcharge rate has been reduced from 37% to 25%. However, this is only applicable for those choosing the new tax regime.

New Tax Slab vs. Old Tax Slab

Employment Related 

• In order to help upskill youth for international opportunities, 30 Skill India International Centers will be set up across different States.

• Government will launch Pradhan Mantri Kaushal Vikas Yojana 4.0 to equip youngsters in new age skills such as AI, coding, IOT, robotics, etc.

• A direct benefit transfer system is to be rolled under a pan-India National Apprenticeship Promotion Scheme. Under this, 47 lakh youth will receive stipend over 3 years

Regarding Savings Schemes 

• Monthly savings scheme limit has been increased to Rs. 9 lakh for individual holders and Rs. 15 lakh for joint account holders.

• For those investing in Senior Citizens Savings Scheme, the maximum deposit limit will be increased to Rs. 30 lakh from Rs. 15 lakh.

• A one-time new savings scheme, Mahila Samman Savings Certificate is to be made available for women until March 2025.

Expensive Vs. Economical

Here are some of the products that have either become dearer or cheaper based on the new budget -

Conclusion

This budget hopes to lead India to becoming more inclusive and prosperous. Despite COVID related repercussions and a war, the current year's economic growth is said to be 7% which is the highest among major economies.

Given above are just some of the highlights of the Union Budget 2023. If you wish to read, click here or here.