Union Budget 2023 Highlights: New Tax Slabs for Salaried Taxpayer

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Union Budget 2023 Highlights New Tax Slabs for Salaried Taxpayer
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Under heightened expectations, our Finance Minister, Nirmala Sitharaman presented the Union Budget 2023 on 1st February 2023 at 11 AM. Since the budget is being presented at a time when major economies are experiencing a slowdown, all eyes are on India to observe how the budget plans to utilize the potential of one of the fastest-growing economies in the world.


India’s GDP growth estimate is set at 7 per cent. Hence, the Union Budget 2023 will be the “first Budget of Amrit Kaal and the blueprint for India @ 100”.


Highlights of Union Budget 2023


  • Saptarishi: 7 Priorities of the Union Budget to guide us through the 25 years of Amrit Kaal:
    • Inclusive Development
    • Reaching the Last Mile
    • Infrastructure and Investment
    • Unleashing the Potential
    • Green Growth
    • Youth Power
    • Financial Sector


  • National Digital Library for Children and Adolescents: Government will set up a digital library for students to build a culture of reading. The states are required to support this initiative with the help of physical libraries.


  • Make AI for India: 3 centres to be developed for fulfilling ‘Make AI for India’ and ‘Make AI work for India’.


  • PAN as Common Business Identifier: PAN will be the singular business identifier for all specified digital platforms of the Government.


  • Doubled EPFO Accounts: EPFO membership doubled to 7 crores, reflecting the increased employment rate throughout the country.


  • 30 Skill India International Centres: These centres will be pillars for ushering in a new age of increased Research and Development.


  • 100 New Labs for 5G services: 100 labs will be set up in engineering institutions for developing apps using 5G services.


  • New IT Return Form: A new IT Return Form is being introduced for easier returns filing.


  • Reduced IT Processing Period: The IT Returns processing period has been reduced by 16 days from 93 days.


    • New Tax Slab for New Regime:
      Tax Slab Tax Percentage
      0 – ₹3 lakhs 0
      ₹3 lakhs – ₹6 lakhs 5%
      ₹6 lakhs – ₹9 lakhs 10%
      ₹9 lakhs – ₹12 lakhs 15%
      ₹12 lakhs – ₹15 lakhs 20%
      Above ₹15 lakhs 30%



  • Reduced Surcharge: The highest surcharge rate has been reduced from 37% to 25% for the new tax regime.


  • TDS on EPF Withdrawal: On taxable withdrawal of EPF, the TDS rate has been reduced to 20% from 30%.


  • Increased Tax Exemption for Leave Encashment: The limit of tax exemption for leave encashment has been increased from ₹3 lakhs to ₹25 lakhs.


DisclaimerAll the views, opinions and information expressed in this write-up are of the authors and their respective web sources and in no way or the other reflect the views, objectives or principles of Pocket HRMS.


Source: The Times of India, The Indian Express, Livemint

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