Finance Minister Nirmala Sitharaman presented the last full Budget of the Modi government before general elections 2024 on February 1. Here is latest updates on Union Budget 2023-24 …
FM Sitharaman presents Budget 2023-24, says Indian economy is on right track
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The Finance Minister has provided a shot in the arm for smaller taxpayers by increasing rebates and ensuring that there is no income tax levied up to 7 lakh rupees in income. In addition, the revised tax slabs under the new tax regime and the extension of the standard deduction will ensure that the salaries class will have a little more cash in hand this coming year to fuel consumption and or investments in India.
What’s new in the new income tax regime
– Basic exemption limit is hiked from Rs 3 lakh to Rs 2.5 lakh
– Rebate under section 87A has been hiked from Rs 5 lakh to Rs 7 lakh
– The income tax slabs under the new income tax regime will be as follows:
a) Rs 0 to Rs 3 lakh – 0% tax
b) Rs 3 to 6 lakh – 5% tax
c) Rs 6 to 9 lakh – 10% tax
d) Rs 9 lakh to Rs 12 lakh – 15% tax
e) Rs 12 lakh to Rs 15 lakh – 20% tax
f) Above Rs 15 lakh above – 30% tax
– Individuals with income of Rs 15.5 lakh and above have been made eligible for standard deduction of Rs 52,500 in new tax regime in Budget 2023.
– Further, the new income tax regime becomes default tax regime. However, the individuals will have an option to continue with the old income tax
Union Budget key announcements: The government has lowered its growth estimates for the current fiscal year to 7% from earlier estimates of 8-8.5%. The estimates for the next fiscal year is 6-6.8%, according to the annual economic survey report tabled in parliament on Tuesday.
Economic Survey: India to be 5 trillion dollar economy by 2025-26, says CEA