Income of up to 7 lakh rupees will be tax free !

• Presenting the Union Budget for the financial year 2023-24
• A change in the tax structure after a period of 9 years
• Substantial provisions for railways
• New savings plan for women
• Increase in the maximum limit of deposits in savings scheme for senior citizens
• Announcement of digital training for farmers and ‘Shri Anna Yojana’ for growing grains in large quantities

Union Finance Minister Nirmala Sitharaman

New Delhi  –  Union Finance Minister Nirmala Sitharaman presented the budget for the financial year 2023-24 in the Lok Sabha. Nirmala Sitharaman announced provisions for various sectors like agriculture, industry, education, infrastructure, railways. Sitharaman also announced a change in customs, etc. Custom duties on toys imported from abroad has been reduced by 13%. The tax structure however is seeing its first change in 9 years. This is a huge relief for middle class households. From 2014 to this year the income tax limit has been increased from Rs 5 lakh to Rs 7 lakh. As a result, the public will not be taxed on annual income up to Rs 7 lakh; income after 7 lakhs will be taxed. An income tax of Rs 45,000 will be payable on an annual income up to Rs 9 lakh, and Rs 1.5 lakh will be payable on annual income of Rs 15 lakh. Interestingly, while introducing this new tax system, the old tax system has also been continued.

New tax structure after Rs 7 lakh	Amount to be paid as tax (Percentage)
0-3 lakh	no tax
3-6 lakhs	5 %
6-9 lakhs	10 %
9-12 lakhs	15 %
12-15 lakhs	20 %
More than 15 lakhs	30 %

Paying income tax will now be easy

The average time taken to process income tax returns has been brought down from 93 days to 16 days in the year 2023-24. 45% of income tax refund applications (forms) will be processed within 24 hours.

Finance Minister Nirmala Sitharaman in her Union Budget speech made five major announcements to overhaul and sweeten the new income tax regime.#BudgetonIndiaToday https://t.co/0ctQ2xyWMu

— IndiaToday (@IndiaToday) February 1, 2023

What will become expensive ?

• Gold & silver utensils and ornaments imported from abroad
• Platinum jewelry
• Exotic kitchen chimney
• Certain brands of cigarettes
• Umbrella
• X-Ray Machine
• Diamonds

What will become cheaper ?

• Mobile sets
• Spare parts for the TV
• Electric cars
• Lithium Iron Battery
• Toys imported from abroad
• Bicycles
• Biogas related equipment
• LED TV
• Mobile camera lens
• Diamond Jewellery
• Clothes

100 schemes to be implemented for Indian Railways

In this year’s budget, a substantial provision of Rs 2.4 lakh crore has been made available for the railways in the coming year. New routes and new projects of railways department will be accelerated. Over a 100 important projects of the Indian railways will be implemented on a priority basis. It will focus on making railway journeys safer and more comfortable. A Digital ticketing system will also be adopted for the railways.

(Credit : PIB India)

Salient features of the budget

• 70 thousand ‘Eklavya Model Schools’ to be started for tribal students.
• Will recruit 38 thousand teachers in next 3 years.
• 57 new ‘nursing colleges’ will be established across the country.
• Emphasis to be given on the use of artificial intelligence.
• Use of Regional languages will be increased.
• The number of digital libraries will also be increased.
• The limit of the ‘Senior Citizen Savings Yojana’ will be increased from Rs 4.5 Lakh to Rs 9 Lakh.
• The maximum limit of depositing money in a joint account to be increased to Rs.15 lakhs.
• New savings scheme of up-to 2 years for women. Women can purchase the ‘Mahila Samman Savings Patras’ for up to Rs 2 lakh. Interest will be paid at the rate of 7.5% per annum.
• 50 additional airports will be opened in the country.
• Will start giving digital training to farmers
  ‘Shri Anna Yojana’ will be launched to increase the production of coarse grains. (sorghum, millet, ragini, satu etc.)
• To increase the storage capacity of the agriculture sector. To achieve this, an ‘Indian Millets Institute’ will be established.
• All Antyodaya Yojana beneficiaries and families with serious needs will be given free food grains for the next one year.