Union Budget 2023, presented by Finance Minister Nirmala Sitharaman, aims to address ongoing challenges and strengthen the Indian economy in the forthcoming years. The budget focuses on seven priorities: inclusive development, reaching the last mile, infrastructure and investment, youth power, green growth, and unleashing potential along with the financial sector.
In a big boost for taxpayers and the economy, the Minister announced significant changes under the new tax regime for tax slabs, a significant increase in the money allocated for the development of railways and capital expenditure. The budget also includes measures to boost consumption, ease the burden of compliance, benefit the existing and new MSMEs as well as the middle class, and also streamline and simplify the entire tax system.
With infrastructural upgrades, enhanced Capex, and incentives, especially for the key sectors, the Indian economy is on the right path towards its goal of becoming a $5 trillion economy. The budget aims to support this goal and provide a brighter future for the country. Citizens eagerly awaited the Union Budget 2023, and it did not disappoint, providing a comprehensive plan for the country's development and growth. The budget focuses on inclusive growth, reaching all parts.
Now, the new version of the New Tax Regime, which was introduced in the 2020 Union Budget, would be the tax regime by default for every individual when filing their returns. However, taxpayers can also opt for the Old Tax Regime if they want.
The basic exemption limit increased to Rs. 3 lakhs from Rs. 2.5 lakhs under the New Tax Regime only.
Tax slabs for FY 2023-24 (AY 2024-25):
Introduction of tax rebate of Rs 7 lakhs under section 87A and the standard deduction is now introduced upto Rs 50,000 under the new tax regime.
Note: Page created with inputs from Times of India and Economic Times