Union Budget 2023 is a highly anticipated event for both the Indian economy and its citizens. The annual budget presentation is a crucial moment that outlines the government’s financial priorities and plans for the coming fiscal year. As one of the largest economies in the world, India’s budget has far-reaching impacts on its citizens, businesses, and the global economy. In this blog, we will explore the key highlights of Union Budget 2023 and what it means for different stakeholders in the Indian economy.
With a focus on economic growth, infrastructure development, and social welfare, we will delve into how this budget will shape the future of the country. Whether you are an investor, entrepreneur, or simply someone interested in finance, this blog is the perfect resource for staying informed about Union Budget 2023.
Major Tax Reforms for Income Tax Payers
- The old tax regime has remained unchanged for those who wish to continue with it, but the new tax regime is set to become the default option.
- The Union Budget 2023 has proposed a tax exemption up to Rs 7.5 lakh for individuals with a standard deduction of Rs 50,000. This move is expected to provide relief to a large number of taxpayers.
- Another major change is the reduction of the highest surcharge rate from 37% to 25%, which is expected to bring down the tax liabilities of high-income individuals.
- The new tax regime has also proposed new income tax slabs, which are different from the old ones. The comparison of tax liabilities under both regimes can help taxpayers determine which one is more suitable for them.
- The standard deduction of Rs 50,000 is a new addition to the tax regime and is expected to provide a significant boost to the disposable income of taxpayers.
- Taxpayers who receive payment from Agniveer Corpus Fund by Agniveers can now avail exemption on the same under the new tax regime.
- The Union Budget 2023 has also proposed to tax online games and to impose TDS on net winnings. This move is expected to bring in additional revenue to the government.
- The hike in tax exemption on leave encashment on retirement is expected to provide additional financial support to retirees.
- The TDS limit for co-operative societies has also been increased, which is expected to bring in more revenue for the government.
- The introduction of the next-generation Common IT Return Form is expected to simplify the process of tax filing and make it more user-friendly.
- The government has also proposed to strengthen the grievance redressal mechanism to ensure that taxpayers’ issues are resolved in a timely and efficient manner.
- The reduction of TDS rate on the taxable portion of EPF withdrawal is expected to provide relief to employees and increase their take-home salary.
These tax reforms are aimed at providing relief to taxpayers and simplifying the tax filing process while ensuring that the government’s revenue collection is not impacted.
New Income Tax Slabs Under New Tax Regimes:
Rs 0-3 lakh: Nil
Rs 3-6 lakhs: 5%
Rs 6-9 lakhs: 10%
Rs 9-12 lakhs: 15%
Rs 12-15 lakhs: 20%
Rs Over 15 lakhs: 30%
Costlier and Cheaper Items
- A. Cheaper Items:
The Union Budget 2023 has brought about a change in the prices of several items. Some of the items that have become cheaper include:
Mobile phones
Televisions
Lab-grown diamonds
- Costlier Items:
On the other hand, the budget has also resulted in the increase of prices for certain items. Some of these items include:
Cigarettes
Silver
Imitation jewelry
The changes in prices of these items are a result of the government’s tax and duty changes, aimed at boosting the economy and ensuring fiscal stability. It is important to note that these changes could impact individuals and businesses differently, and one should keep an eye on the budget’s overall impact on their personal finances and operations.
Indirect Taxes in the Union Budget 2023
The Union Budget 2023 brings about several changes in the indirect taxes sector, aimed at promoting domestic manufacturing and boosting the economy.
- Increased Taxes on Certain Cigarettes – A 16% hike on certain cigarettes has been implemented to discourage their consumption.
- Lower Tax Rate for New Cooperatives – A lower tax rate has been introduced for new cooperatives that commence manufacturing till March 2024, to encourage entrepreneurship.
- Reduced Basic Customs Duty on Crude and Glycerine – The basic customs duty on crude and glycerine has been reduced, to provide relief to the related industries.
- Increased Import Duty on Silver Bars – The import duty on silver bars has been hiked, in a move to encourage domestic silver production.
- Extension of Customs Duty Cut on Mobile Phone Imports – The customs duty cut on imports of parts of mobile phones has been extended to further promote the mobile manufacturing industry in India.
- Reduction of Customs Duty on Open Cells of TV Panels – The customs duty on open cells of TV panels has been reduced to encourage TV manufacturing in the country.
- Relief on Customs Duty on Import of Certain Parts and Inputs – Concessions have been made on customs duty on the import of certain parts and inputs to provide relief to industries.
- Concessional Duty on Lithium-ion Cells Extended – The concessional duty on lithium-ion cells has been extended to encourage the production of these cells in India.
- Reduced Number of Basic Custom Duty Rates – The number of basic custom duty rates has been reduced for goods other than textiles and agriculture, in a move to simplify the tax structure and promote trade.
Saving Schemes Announcements in Union Budget 2023
The Union Budget 2023 has made some important announcements regarding saving schemes that are aimed at providing more financial security and stability to individuals and families. Some of the major announcements are as follows:
- Increased Deposit Limit for Senior Citizen Savings Scheme: The maximum deposit limit for the Senior Citizen Savings Scheme has been increased to Rs 30 lakh from the previous limit of Rs 15 lakh. This will provide senior citizens with more flexibility and a higher earning potential on their savings.
- Higher Monthly Income Scheme Limit: The limit for the Monthly Income Scheme has been doubled, with an individual now able to deposit up to Rs 9 lakh and up to Rs 15 lakh for joint accounts. This will allow individuals to earn a higher monthly income and secure their financial future.
- Mahila Samman Saving Certificate: A new saving scheme, the Mahila Samman Saving Certificate, has been introduced for women. This scheme will be available for 2 years up to March 2025 and will provide a deposit facility of up to Rs 2 lakh in the name of women or girls. The scheme will offer a fixed interest rate of 7.5% with a partial withdrawal option.
These announcements are a testament to the government’s commitment to providing financial security and stability to all individuals, especially women and senior citizens. The Union Budget 2023 has provided a much-needed boost to the saving scheme sector and will help individuals and families plan for their financial futures.
Jobs & Education
In the Union Budget 2023, the government has announced several measures aimed at creating job opportunities and skilling the youth. The following are the key highlights:
- Pradhan Mantri Kaushal Vikas Yojana 4.0: The government will launch the fourth edition of the scheme to provide training and employment to the youth.
- Skill India International Centres: To provide international opportunities to the youth, the government will set up 30 Skill India International Centres across different states in India.
- National Apprenticeship Promotion Scheme: The government will roll out a Direct Benefit Transfer under a pan-India National Apprenticeship Promotion Scheme. The scheme will provide stipend support to 47 lakh youth over a period of three years.
In the Union Budget 2023, the Indian government has made several announcements for the education sector. One of the major initiatives is the setting up of three centers of excellence for artificial intelligence in top educational institutions. The government is taking steps to keep up with the changing times and provide students with cutting-edge education.
Another major announcement is the establishment of 157 new nursing colleges in collaboration with the existing 157 medical colleges established since 2014. This will go a long way in fulfilling the growing demand for healthcare professionals in the country.
The Union Budget 2023 has also focused on the education of tribal students. The government has announced the establishment of Eklavaya Model Residential Schools in the next three years. This will provide education to 3.5 lakh tribal students. The government will recruit 38,800 teachers and support staff for 740 schools to ensure the best possible education for these students. The Union Budget 2023 has clearly demonstrated the government’s commitment to provide quality education to all.
The Union Budget 2023 has focused on creating job opportunities and skilling the youth to make them employable in the international market.
Conclusion
In conclusion, the Union Budget 2023 has brought a range of reforms and announcements, catering to the needs of different sections of the society. The Union Budget 2023, presented by the Finance Minister Nirmala Sitharaman, lays out the government’s vision for a self-reliant Atmanirbhar Bharat. The budget focuses on infrastructure development, healthcare, education, and skill development, while also addressing rural development and agricultural growth.
