01/02/2023
*Budget 2023*
1. Infra gets boost:
- Highest ever capital outlay of Rs. 2.40 lakh crores for Railways
- 50-year interest-free loans to states one more year for infra spends
2. Agri & Fisheries to benefit:
- Agricultural accelerator fund to promote agri-startups
- 10,000 bio-input resource centres in next 3 yrs to promote natural farming
- 6000 Cr outlay for Animal husbandry, dairy, and fisheries
3. Seven priorities of the budget:
1. Inclusive development
2. Reaching the last mile
3. Infra & investment
4. Unleashing the potential
5. Green growth
6. Youth power
7. Financial sector
4. Ease of doing business and simplification of compliance:
- 39,000 compliance reduced
- 3,400 provisions decriminalised
- PAN to be used as common identifier for digital systems
- Entity for Digilocker to be setup for SMEs, businesses & trusts
5. Women & Senior citizens:
- Mahila Samman Savings Certificate launched (7.5% int., 2 yrs tenure, 2L limit)
- Senior Citizen Savings Scheme deposit limit increased from 15 Lakh to 30 Lakh
6. Employment & training:
- National Apprenticeship Promotion Scheme as stipend support for 47 lakhs youth in 3yrs
- Pradhan Mantri Kaushal Vikas Yojana 4.0 to upskill youths within the next 3yrs
- 30 Skill India Centres to be established
7. Tax rebate under section - 87A limit increased from 5 Lakh to 7 Lakh
8. New tax slab for New Tax Regime:
Income
• < 3 Lakhs = Nil
• 3 - 6 Lakhs = 5%
• 6 - 9 Lakhs = 10%
• 9 - 12 Lakhs = 15%
• 12 - 15 Lakhs = 20%
• > 15 Lakhs = 30%
9. Announcement:
Highest surcharge rate reduced from 37% to 25% in the new tax regime
Impact: This will reduce highest income tax rate from 42.7% to around 39%
Advantages on options for New Tax Regime as you have to pay zero tax on income up to Rs 7 Lakh.
Taxpayers with income more than Rs 15 Lakh to get a standard deduction of Rs. 52,500 in the new tax regime.
A. Total Income of 5 Lakhs:
- Tax under Old Regime = 0
- Tax under New Regime = 0
B. Total Income of 7 Lakhs:
- Tax under Old Regime = Rs 54,600
- Tax under New Regime = 0
Thanks 🙏
