Budget 2023: Huge Income Tax Relief, Infra And Jobs Push Ahead Of 2024: 10 Points

Budget 2023: Nirmala Sitharaman presented the Union Budget today

The government has simplified the slabs in the new tax regime, which will be the default version. There will be no tax on income on up to Rs 7 lakh a year -- up from Rs 5 lakh -- and the highest applicable tax rate in India after surcharges has been reduced from 42.7 per cent to 39. The new tax regime is "attractive as it gives a greater rebate. It also provides for simplified and smaller slabs," the minister said.
The tax slabs will be cut to five instead of seven in the new regime. There will be no tax for income up to Rs 3 lakh. Income between Rs 3-6 lakh will be taxed at 5 per cent; those earning between Rs 6 and 9 lakh will be taxed at 10 per cent, income of Rs 9-12 lakh will be taxed at 15 per cent, for Rs 12-15 lakh income it will be 20 per cent and those earning Rs 15 lakh and above will be taxed at 30 per cent.
The government will spend a record Rs 10 lakh crore on longer term capital expenditure, an increase of 33 per cent, extending its strategy to revive growth after Covid. This will be 3.3 per cent of the GDP in 2023-2024.
The government has outlined seven priority areas - including development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector.
The agricultural credit target has been increased to Rs 20 lakh crore and in another populist measure, allocation for PM Awas Yojna increased by 66 per cent to over Rs 79,000 crore. The government has also promised 50 new airports and helipads.
For the railways, the minister announced an outlay of Rs 2.4 lakh crore -- the highest in almost a decade and four times the last year's budget. "This is about nine times the outlay made in 2013-14," she said, comparing it with the last year of the Congress-led UPA governance.
The Permanent Account Number (PAN) will be used as a common identifier for all digital systems of specified government agencies. The KYC process will be simplified and a one-stop update of identity will be established through Digilocker service and Aadhaar. A system of 'Unified Filing Process' will be set-up to streamline the current process of duplication for multiple departments for ease of business.
To settle commercial disputes, the government will bring another dispute resolution scheme. There will be a one-stop solution for reconciliation of IDs maintained by various government agencies, the minister said.
With a focus on switching to green fuel, the government is targeting 5 MT of Green Hydrogen production by 2030, Ms Sitharaman said.
The fiscal deficit target of 6.4 per cent will be retained in the revised estimate for the current fiscal. For the next fiscal 2023-2024, it will be cut down to 5.9 per cent of the GDP, Ms Sitharaman said.