Union Budget 2023 Highlights: New Tax Slabs for Salaried Taxpayer

Under heightened expectations, our Finance Minister, Nirmala Sitharaman presented the Union Budget 2023 on 1^st 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%

• Revised Income Tax Rebate Limit: The income Tax rebate under Section 87A limit has been increased to ₹7 lahks from ₹ 5lakhs for new regime taxpayers.

• 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.

Disclaimer: All 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