New Delhi: Union Finance Minister Nirmala Sitharaman presented the budget for the financial year 2023-24 in the Lok Sabha on Wednesday. With Lok Sabha elections due next year, this will be the last budget for the entire year under the leadership of Prime Minister Modi. Highlights of Finance Minister Nirmala Sitharaman’s Budget Speech:
For those following the old income tax system, the personal income tax exemption ceiling has been raised to Rs.50,000. According to this, people with annual income up to Rs.3 lakh need not pay income tax. Tax details:
- No income tax for those with annual income up to Rs.3 lakh.
- 5% tax if annual income is between Rs.3 lakh to Rs.5 lakh.
- 10 percent tax on annual income between Rs 6 lakh and Rs 9 lakh.
- 20 percent tax on annual income between Rs 12 lakh and Rs 15 lakh
- 30 percent tax for those with income above Rs.15 lakh
Among those following the new income tax regime, those with annual gross income up to Rs 7 lakh will no longer be subject to income tax. Earlier this upper limit was Rs.5 lakh, now it has been increased to Rs.7 lakh.
Currently, less than 20 percent across the country seem to be following the new income tax system. In this mode there is no income tax benefit under Section 80C and 80D of Income Tax. In the new income tax system, the annual gross salary of the salaried employee is calculated as gross income. Thus, there is an opinion that the new tax policy is not beneficial for the salaried people as the tax payable is high even though the tax rate is low.
As per the new income tax system, those who already have taxable income of Rs.5 lakhs will not have to pay tax. This limit has now been raised. People whose taxable income is less than Rs.7 lakh will no longer have to pay tax.
Tax hike:
- The duty on cigarettes has been increased.
- Import duty on gold, silver and diamonds is increased.
- Increase in customs duty on gold bullion products.
- 15 percent increase in kitchen chimney customs duty.
- Announcement of 25 percent import duty on rubber.
Tax reduction:
- Tax on TV panels will be reduced by 2.5 percent.
- Customs duty on cell phone accessories is reduced.
- Customs duties on lab-grown diamonds will be reduced.
- Customs duty on shrimp meal is reduced. This tax is reduced to encourage exports.
Other Key Features:
- The agricultural credit target for the financial year 2023-24 has been raised to Rs 20 lakh crore.
- 100 percent mechanization will be ensured in the treatment of sewage tanks and canals. It will be implemented in all cities across the country.
- Steps will be taken to establish 157 nursing colleges near the 157 newly established medical colleges in the country since 2014.
- A National Digital Library will be set up. This is especially true for children and young adults.
- The Prime Minister’s Kaushal Vikas 4.O scheme will be introduced to provide skill development to lakhs of youth.
- 30 Skill India International Centers will be set up across the country.
- 38 thousand 800 teachers will be recruited for residential schools under Ekalaiva model in next 3 years.
- 30 Skill India International Centers will be set up at various locations across the state.
- One crore farmers will be given subsidy for organic farming.
2.4 lakh crore is allocated for the development of the railway sector. This is the highest ever allocation for railways.
- By 2047, steps will be taken to eradicate sickle cell anemia.
- The scheme will be implemented with an allocation of Rs 15,000 crore to ensure safe housing, sanitation, water supply and electricity to the tribal people.
- 157 Nursing Colleges will be set up at the same locations along with 157 Medical Colleges across the country.
- Rs.20 lakh crore is allocated for the development of animal husbandry, dairy farming and fisheries sector for the benefit of the agriculturists.
- 50 new airports and helipads will be set up across the country.
- 3 artificial intelligence labs will be set up to develop high technology.
- 10 thousand crores will be allocated for urban infrastructure development.
- A fund of Rs.75 thousand crore will be allocated for the implementation of transport projects.
Bank deposit amount for people above 60 years increased from Rs.15 lakh to Rs.30 lakh. 7.5% interest will be paid on deposits up to Rs 2 lakh per annum in women’s banks. It will be valid for two years only.
- 35,000 crores will be provided for alternative fuel projects aimed at curbing carbon emissions
- Funding for Prime Minister’s Housing Project will be increased by 66 percent. That is, Rs.79 thousand crores will be allocated for this project.
- The target amount of agricultural credit is Rs.20 lakh crore
- 15 thousand crores for 3 years to improve housing, drinking water, road and telecommunication facilities for tribal people
