Union Budget 2023 Highlights

Union Minister Nirmala Sitharaman on Wednesday presented the Union Budget 2023. Here are the major highlights and key takeaways from the Budget.

  1. Seven Priorities of the Budget ‘Saptarishi’
  • Inclusive development
  • Reaching the last mile
  • Infrastructure and investment
  • Unleashing the potential
  • Green Growth
  • Youth Power
  • Financial Sector
  1. New Tax Regime to become the default tax regime. However, as a citizen, you can opt for the old tax regime.
  2. No Tax on income up to Rs. 7 Lakhs a year in the new tax regime
  3. Surcharge Highest shall be reduced from 37% to 25% in the new tax regime
  4. The exemption limit has been increased to Rs. 3 Lacs
  5. New Income tax slab rate under the new regime

Rs. 0-3 Lakhs – Nil

Rs. 3-6 Lakhs – 5%

Rs. 6-9 Lakhs – 10%

Rs. 9-12 Lakhs – 15%

Rs. 12-15 Lakhs – 20%

Rs. Over 15 Lakhs – 30%

  1. The government has proposed to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of the fiscal year for online games
  2. Tax Exemption on leave encashment on the retirement of non-government salaried employees hiked from Rs. 3 Lacs to Rs. 25 Lacs
  3. The benefit of Standard Deduction to be extended to New Tax Regime
  4. TDS on cash withdrawal limit has been increased to Rs. 3 crores in case of cooperative societies
  5. The TDS rate will be reduced to 20% from 30% on the taxable portion of EPF withdrawal in non PAN cases
  6. A lower tax rate of 15% shall be there for New cooperatives that commence manufacturing till March, 2024.
  7. The maximum deposit limit has been enhanced to Rs. 30 Lacs from 15 lacs for Senior Citizen Savings Scheme
  8. One time new saving scheme Mahila Samman Saving Certificate for women to be made available for two years up to March 2025
  9. The government will launch Pradhan Mantri Kaushal Vikas Yojana 4.0
  10. PAN as a common identifier for all digital systems of govt. agencies
  11. Entity DigiLocker to be set up for use by MSMEs, large businesses, and charitable trusts to store and share documents online securely.
  12. 30 Skill India International Centres to be set up across different States to skill the youth for international opportunities.
  13. Central Processing Centre to be set up for faster response to companies through centralized handling of various forms filed with field offices under the Companies Act
  14. Agriculture Accelerator Fund to be set up to encourage agri-startups by young entrepreneurs in rural areas.
  15. More than 39,000 compliances were reduced. Jan Vishwas Bill to amend 42 laws.
  16. NFIR (National Financial Information Registry) is to be launched for, financial strategy.
  17. Reducing the cost of MSME Credit by 1% Infusion of Rs. 9,000 crores in the corpus for MSME credit
  18. The average processing period of ITR reduced from 93 to 16 days
  19. Extension of the date of incorporation by one year for income tax benefits to start-ups
  20. The benefit of carrying forward losses on change of shareholding from seven years of incorporation to ten year
  21. No exemption for Insurance Policies with Aggregate Premiums above Rs. 5 lac

 

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