New budget 2023 | Tax slab change in 2023 budget

Budget 2023 Highlights: Finance Minister Nirmala Sitharaman presented her fifth straight budget today. This was also the last the full budget of Modi 2.0 govt before the next parliamentary elections in 2024.

India will lose Rs. 35,000 crore of net tax revenue after the Union Budget tweaked direct and indirect taxes to provide relief to the middle-income group, Finance Minister Nirmala Sitharaman said today.

"Revenue of about Rs. 38,000 crore – Rs. 37,000 crore in direct taxes and Rs. 1,000 crore in indirect taxes – will be forgone while revenue of about Rs. 3,000 crore will be additionally mobilized. Thus, the total revenue forgone is about Rs. 35,000 crore annually," Sitharaman said while announcing the Union Budget for the next fiscal year that starts April 1."

In a major announcement, Finance Minister Nirmala Sitharaman announced that the new tax regime will now be the default tax regime, but citizens can still avail of benefits under old tax regime on opt-out basis.

Personal Income Tax:

Rebate limit under the new tax regime to be increased from Rs 5 lakhs to Rs 7 lakhs. This means no income tax outgo for a taxpayer earning up to Rs 7 lakh under the new income tax regime.

Revised tax slabs under the new tax regime

Under new tax regime, income of Rs 0-3 lakh is nil.
Income above Rs 3 lakh and up to Rs 6 lakh to be taxed at 5% under new regime.
Income of above Rs 6 lakh and up to Rs 9 lakh to be taxed at 10% under new regime.
Income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20% under new regime.
Income above Rs 15 lakh to be taxed at Rs 30%.

FM announced changes in certain duties and taxes, resulting in some items getting cheaper and some getting costlier.

Here's a list of imported items that will become costlier:
Cigarettes
Kitchen chimney
Imported bicycles and toys
Fully imported cars and Electric Vehicles
Imitation jewellery
Compounded rubber
Silver dore
Naphtha

However, certain goods will become cheaper as the government has slashed the customs duty and these are:

Domestically-manufactured TV sets
Shrimp feed
Fish lipid oil used in manufacturing aquatic feed
Seeds for lab-grown diamonds
Capital good
Machinery for manufacturing lithium ion cell to be used in electric vehicles.

Key points;

FY-2024 fiscal deficit target at 5.9% of GDP
Outlay for capital spending increased 33% to 10 trillion rupees in 2023/24
Cigarettes to get costlier as Budget proposes 16% hike in duty
To set up agriculture accelerator fund
Increases budget allocations to 790 bln rupees for affordable housing in 2023/24
Finance Minister says increase in public capex key to crowding in private investments
Indian economy has become the fifth-largest economy in the world in last nine years
Budget adopts seven priorities including inclusive, green growth
Agricultural credit target raised to 20 trillion rupees ($244.42 billion) for 2023/24
Sitharaman says the economy is growing the fastest among major economies

FM Nirmala Sitharaman also outlined seven priorities for the 'first Budget in Amrit Kaal'

Inclusive development
Reaching the last mile
Infra & investment
Unleashing the potential
Green growth
Youth power
Financial sector

Jal Jeevan Mission allocated Rs 70000 cr

Eklavya Model Residential Schools allocated Rs 5943 cr

Pradhan Mantri Awas Yojana allocated Rs 79590 cr

Scheme for Faster Adoption and manufacturing of EVs allocated Rs 5172 cr

N-E special infrastructure development scheme allocated Rs 2491 cr

Allocations: Defence (Rs 5.94 lakh cr); Road transport and Highways (Rs 2.70 lakh cr); Railways (Rs 2.41 lakh cr); Home Affairs (R 1.96 lakh cr); Rural Development (Rs 1.60 lakh cr); Agriculture & Farmers Welfare (Rs 1.25 lakh crore)