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.
- Seven Priorities of the Budget ‘Saptarishi’
- Inclusive development
- Reaching the last mile
- Infrastructure and investment
- Unleashing the potential
- Green Growth
- Youth Power
- Financial Sector
- New Tax Regime to become the default tax regime. However, as a citizen, you can opt for the old tax regime.
- No Tax on income up to Rs. 7 Lakhs a year in the new tax regime
- Surcharge Highest shall be reduced from 37% to 25% in the new tax regime
- The exemption limit has been increased to Rs. 3 Lacs
- 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%
- 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
- Tax Exemption on leave encashment on the retirement of non-government salaried employees hiked from Rs. 3 Lacs to Rs. 25 Lacs
- The benefit of Standard Deduction to be extended to New Tax Regime
- TDS on cash withdrawal limit has been increased to Rs. 3 crores in case of cooperative societies
- The TDS rate will be reduced to 20% from 30% on the taxable portion of EPF withdrawal in non PAN cases
- A lower tax rate of 15% shall be there for New cooperatives that commence manufacturing till March, 2024.
- The maximum deposit limit has been enhanced to Rs. 30 Lacs from 15 lacs for Senior Citizen Savings Scheme
- One time new saving scheme Mahila Samman Saving Certificate for women to be made available for two years up to March 2025
- The government will launch Pradhan Mantri Kaushal Vikas Yojana 4.0
- PAN as a common identifier for all digital systems of govt. agencies
- Entity DigiLocker to be set up for use by MSMEs, large businesses, and charitable trusts to store and share documents online securely.
- 30 Skill India International Centres to be set up across different States to skill the youth for international opportunities.
- 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
- Agriculture Accelerator Fund to be set up to encourage agri-startups by young entrepreneurs in rural areas.
- More than 39,000 compliances were reduced. Jan Vishwas Bill to amend 42 laws.
- NFIR (National Financial Information Registry) is to be launched for, financial strategy.
- Reducing the cost of MSME Credit by 1% Infusion of Rs. 9,000 crores in the corpus for MSME credit
- The average processing period of ITR reduced from 93 to 16 days
- Extension of the date of incorporation by one year for income tax benefits to start-ups
- The benefit of carrying forward losses on change of shareholding from seven years of incorporation to ten year
- No exemption for Insurance Policies with Aggregate Premiums above Rs. 5 lac
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