The Finance Minister Nirmala Sitharaman unveiled the Union Budget on 1st of February 2023, resulting in major changes and updates in most of the sectors easing the lives of majorly the middle- class earning families. This budget gave relief to the salaried employees by bringing in additional tax measures under the new tax regime. The new tax regime is now the default tax regime, but the taxpayers still have the option to choose to pay tax under the old tax regime. Tax slabs and rebates were the same in the old tax regime, whereas under the new tax regime, there are major changes in tax slabs and rebates. From now on, taxpayers opting for new tax regime will get a rebate upto Rs.7,00,000 and income slabs start range as:
0-Rs.3,00,000=Nil tax rate;
3,00,000-6,00,000= 5% tax rate and so on.
Standard deduction on family pension has also been revised.
The focus on Startups continues:
Not only individual taxpayers but also to the businesses, the budget of 2023 has given some relief. Startups have got a revised limit for setting off and carry forward of losses from 7 years to 10 years from incorporation. Apart from the major changes of rebate and change in tax slabs under a new tax regime in direct taxes, implementation of various proposals under indirect taxes were also made, which will promote exports, encourage domestic manufacturing, boost energy and mobility. They revised customs duties under various items. Certain items like gold, televisions, smartphones, lab- grown diamonds etc got cheaper under the Budget of FY 2023-24 whereas items such as cigarettes, bicycles, electric kitchen chimney, silver got costlier. Travel by flights also got costlier.
Amrit Kaal on the foray by the Government of India
The Indian economy was recognised by the world as a bright star with its economic growth approximately at 7% which is the highest among all major economies, which fortunately was possible on the 75th year of independence. Considering the 75th year of independence, the budget has been centered on the vision for ‘Amrit Kaal’ that includes opportunities for citizens with focus on youth, growth and job creation and a strong & stable macroeconomic environment. Also, the 7 priorities, termed the Saptarishi, included the Union Budget 23-24 to guide the country towards the 75th year of independence in order to provide a blueprint for an empowered and inclusive economy.
The budget also allocated, not to forget the major sectors/ ministries of the Indian economy like Defence, Railways, Home Affairs, Rural Development etc with the requisite amount which are considered as the backbone of the nation or the better functioning of the nation. Major government schemes such as the Jal Jeevan Mission, Eklavya Model Residential schools etc were allocated with sufficient amounts of the budget. PM Kaushal Vikas Yojana 4.0 will be launched with new- age courses for the current youth.
This year’s budget included Green Growth under its seven areas of focus, which aims to achieve net zero carbon emissions in India by 2070.