Delivering her Budget 2023 speech in Parliament on Wednesday, Sitharaman tweaked the Income Tax slabs to provide some relief to the middle class by announcing that no tax would be levied on annual income of up to Rs 7 lakh under the new tax regime.

  • Income upto Rs.3 Lakhs – 0%
  • Income upto  Rs.6 Lakhs – 5% 
  • Income Between Rs.6 Lakhs to 9 Lakhs – 10%
  • Income between Rs.9 Lakhs to 12 Lakhs – 15%
  • Income Between Rs.12 Lakhs to 15 Lakhs – 20%
  • Income Rs.15 Lakhs & above – 30%

The budget focused on Youth, growth & job creation, Strong & Stable Macro Economic environment. 

Agriculture: Rs.2o Lakh Crore agricultural credit targeted at Animal Husbandry, Diary & Fishery sectors

Health: 157 new nursing colleges to be established

Education: 38,800 teachers will be employed in 3.5 lakh Eklavya tribal school. 30 Skill India International centers to be set up.

Railways, Aviation, Transport: Capital outlay of Rs. 2.40 lakh crore for Railways. 50 New Airports and Heliports to be made. Rs. 75,000 crore for 100 transport infra projects

Infrastructure: Rs. 10,000 crore for urban infra fund every year

IT: 3 Centers of Excellence for “Artificial Intelligence” will be set up. Scope of Digi locker to be increased.

Others: More than 39,000 compliances reduced. Jan Vishwas Bill to amend 42 laws.  Rs. 35,000 crore for Energy transmission
10,000 bio input research centers to be set up.  NFIR (National Financial Information Registry) to be launched for financial strategy.
Reducing cost of MSME Credit by 1%. Infusion of Rs. 9,000 crore in corpus for MSME credit. ‘Mahila Samman Bachat Scheme’ for Women for Rs. 2,00,000 @ 7.5% .  SCSS enhanced from 15 lakh to 30 Lakh.

Highlights:

1. Promote domestic manufacturing and exports. 
2. Tax exemption on Capital Goods and Lithium batteries.
3. Mobiles, camera lenses to become cheaper.
4. Gold, Silver & Diamonds, cigarettes, imported rubber to get expensive.
5. Enhanced limit for 3 crore and 75 lakhs for presumptive taxation.
6. Higher TDS limit of RS. 3 cr for Cooperatives
7. New IT Return Form for easier filing .
8. 100 Joint Commissioners to be appointed for disposal of small appeals.
9. TDS reduced on EPF withdrawal
10. Section 54 and 54F to be amended.
11. Rebate limit increased to 7 lakh in new tax regime.
12. Number of slabs reduced from 7 to 5 in new tax regime.
13. Only 5% tax on Individual’s Annual income of 9,00,000 only to pay Rs. 45,000 as tax.
14. Salaried class and pensioner: Standard Deduction increased
15. Highest tax rate 42.74 % reduced
16. Propose to reduced Higher surcharge rate from 37 % to 25% in new tax regime.
17. Leave Encashment: Limit increased from Rs3,00,000 to Rs. 25,00,000.