Union Budget 2023 was held in Parliament every year by finance minister. Finance Minister says ” This is the first Budget in Amrit Kaal World has recognised Indian economy on the right track and as a bright as a star.”
Finance Minister have seven priorities, they focus on this in current financial.
- 1. Green growth
- 2. Youth power
- 3. Inclusive development
- 4. Reaching the last mile
- 5. Infrastructure and investment
- 6. Unleashing the potential
- 7. Launch of digital platform
FM on personal Income Tax
FM Sitharaman proposes to increase income tax rebate limit from Rs 5 lakh to Rs 7 lakh in new tax regime.
The income tax slabs under the new income tax regime will be as follows:
- Rs 0 to 3 lakhs Income :- 0% tax
- Rs 3 to 6 lakhs Income :- 5% tax
- Rs 6 to 9 lakhs Income :- 10% tax
- Rs 9 to 12 lakhs Income :- 15% tax
- Rs 12 to 15 lakhs Income :- 20% tax
- Above Rs 15 lakhs Income – 30% tax
Govt try to simple mechanism for direct tax payers. An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000.
No tax for income up to Rs 3 lakh, 5 percent tax on Rs 3-6 lakh, highest tax rate of 30 percent on income above Rs 15 lakh under new tax regime.
An individual with income of Rs 15 lakh will have to pay Rs 1.5 lakh tax, down from Rs 1.87 lakh under new tax structure. Moving forwards, the new tax regime will be default. However, citizens can continue to use the old one too.
FM on Stock Market
No changes in Capital Gain Tax and STT charges. People may see finance minister change tax rate and give rebate in FY2023- 24 budget. Government say no need to privatize bank in FY 23 budget.
Union Budget 2023: FM on Healthcare Sector
Government spend money on making 157 nursing colleges in FY23. The pharmaceutical industry has been asking for incentives to promote R&D investments.
The FM said that a new programme for research in pharmaceuticals will be formulated and the industry will be encourage to invest in research. Details not announced yet. If these include tax or other significant incentives, it could boost pharma stocks.
Union Budget 2023: FM on Agriculture Sector
Millets, artisans, agri credit, micro entrepreneurs, small farmers -focus areas of the budget speech so far. Agriculture credit target expanded to Rs 20 lakh crore. Decentralised storage capacity will be set up that will help farmers store their produce. The budget envisages India becoming a global hub for Sri Ann or Millets.
FM sitharaman has proposed to increase agricultural credit to Rs 20 lakh crore. The government would also be launching a new scheme of PM MATSYA SAMPADA YOJANA. This should help boost agriculture demand.
FM on School Sector
In the next three years, Eklavaya Model Residential Schools, the Centre will recruit 38,800 teachers and support staff for 740 schools serving 3.5 lakh tribal students, announced FM Nirmala Sitharaman in Union Budget.
FM on Green Sector
India is moving forward firmly to achieve the net zero target. The recently launched national green hydrogen with an outlay of Rs 19,700 crore will facilitate the transition of the economy to low carbon intensity and reduce dependency on fossil fuel imports.
Our target is to reach an annual production of 5 MMT by 2030. This budget provides for Rs 35,000 crore capital investment towards energy transition and net zero objective and energy security by the Ministry of petroleum and natural gas, the FM declared.
FM on Women Empowerment
One-time, new savings scheme for women with a tenure of two years to offer 7.5 percent interest rate with partial withdrawal option. Government will help women for businesses.For senior citizen maximum deposit limit for saving will be from 15 lakh to 30 lakh.
Union Budget 2023: FM on Digital India
Finance Minister Nirmala Sitharaman has announced the expansion of the Government digital certificate depository Digilocker services for the fintech sector. This is a boost for fintech startups as so far the DPI only allows individuals to store and share their certificates, such as academic records, driving licence, PAN cards.
Documentation availability will be the focus for the DigitLocker expansion for the fintech sector, The fintech sector has been facilitated by digital services, PM Jan Dhan Yojana, Indian Stack and UPI,” Sitharaman said.
FM on Custom Duty and Corporate Finance
Govt to reduce customs duty on shrimp feed to promote exports: FM Sitharaman Taxes on cigarettes hiked by 16 percent Basic import duty on compounded rubber increased to 25 percent from 10 percent.
Basic customs duty hiked on articles made from gold bars Customs duty on kitchen electric chimney increased to 15 percent from 7.5 percent. Customs duty on parts of open cells of TV panels cut to 2.5 percent. Govt proposes to reduce customs duty on import of certain inputs for mobile phone manufacturing.
Also Read :- Dividend Income Tax Rate in Current Financial Year