Highlights of Union Budget 23-24
Personal Income Tax
- Rebate for income up to 7 lakhs u/s 87A in the new tax regime
- New tax regime from
0-3 lakhs nil
3-6 lakhs- 5%
6-9 lakhs 10%
9-12 lakhs 15%
12-15 lakhs 20%
Above 15 lakhs- 30 %
- Standard deduction for new tax regime for Rs. 15.5 lakhs or more – 52,500
- Reduction of highest surcharge from 37% to 25% on new income tax regime
- Limit on tax exemption for leave encashment is increased from 3,00,000 to 25,00,000
- New income tax regime default regime
The budget did not have much for the salaried class who was expecting some incentives in 80C and other deductions and exemptions, except the reduction of the marginal tax rates.
Important budget announcements were made in the sectors :
Agriculture, Tourism, and Green Energy are given much importance in terms of allocation. Capital Expenditure towards infrastructure on the above core sectors is extended further. More focus towards rural and tribal segments.
Key Pointers :
- Per capita income at ₹1.97 lac more than double in last 5 years
- India is the 5th largest economy of the world.
- Digital payments of 126 lac crores in 2022
- 2.2 lac crores direct transfer to farmers
- Huge impetus on tourism. State and centre aligned and public private partnership programmes
- Green economy to be given further push. Carbon footprint reduction roadmap to be laid out.
- Government to support agri tech startup’s. Agricultural accelerator fund to be set up.
- India to become a global hub for millets. India is largest producer and second largest exporter of all kinds of millets. Indian institute of millet research will be made international
- ₹2200 crores layout for horticulture
- Agricultural societies, dairy and fishery societies to be set up
- 157 new nursing colleges to be set up.
- National book trust and children book trust to be revamped. New non curriculum books in regional Languages to be added.
- Tribal areas to be developed. Education, infra, telecom, and sustainable livelihood to be developed. ₹15000 crores
- Capital investment outlay increased to ₹10 lac crores. Increase of 33%. Approx 3.3% of GDP
- 50 additional AirPort to be revived for better connectivity.
- Railway outlay ₹2.4 lac crore. 9 times the budget of 2013-14
- Urban development infra fund to be started. Managed by National Housing Board.
- Septic tanks in city and towns to be changed. Manhole to machine holes
- Centre of excellence for artificial intelligence. Three labs to be set up with private help in top institutes of the country.
- National data governance policy to be brought out.
- 100 labs for 5G development
- Focus on green growth. National green hydrogen ₹19700 crores allocation
- Renewal energy allocated ₹20700 crores
- Mangrove plantation along coastline wherever feasible.
- 1 crore farmers to be trained for natural farming.
- 36 skill international setups to be made
- Tourism made easy. Every destination to be made full package.
- Mahina samman bachat Patra one time new small saving scheme for 2 years till March 2025. Deposit facility till 2 lac at fixed interest rate of 7.5%
- Max deposit limit for senior citizen FD scheme enhanced to ₹30 lacs
- Entire 50 year loans to the state to be spent on infra Capex. Mandatorily to be spent. Scrapping old government vehicles.
- Fiscal deficit of states to be 3.5% of GSDP
- 2022-23 revised estimates are 24.3 lac crores (20.9 are tax receipts)
- Fiscal deficit at 6.4%.
- Fiscal deficit 2023-24 5.9%
- Fiscal deficit target of below 4.5% by 2025-26
- Processing days of ITR reduced from 93 days to 16 days.
- Highest tax rate is 42.7%. Now reduced. Surcharge now at 25% from 37%. New tax now at 39%
Overall all in today’s budget proposal presented by Hon’ble Finance Minister Ms. Nirmala Sitharaman addressed the expectations of women, Tax relief for salaried class, in addition to productive schemes for artisans, empowering the tribal section. But one has to appreciate the commitment of the Government in containing the Fiscal deficit, which may be the process impetus for the target set for ‘5 trillion-dollar economy’ by the Government.