Finance Minister Nirmala Sitharaman Wednesday unveiled her Union Budget for the fiscal year 2023-24. The minister announced significant reforms and plans. In the area of income taxation, the government has announced various modifications.
Tax rebates on income are extended
to income of up to 7 lakhs under the new tax system, Finance Minister Nirmala Sitharaman said. “I am introducing in 2020, the brand new personal income tax regime that includes six income slabs starting at 2.5 Lakhs. I am proposing to alter the tax structure of this new regime by reducing the number of slabs to five and raising the tax exemption to Rs 3. Lakhs, ” Nirmala Sitharaman stated.
“The taxes that are being introduced
range from 0 to 3 lakhs – null, between Rs 3 and 6 lakhs – 5 percent, Rs 6 to 9 Lakhs 10%, from Rs 9-12 Lakhs 15 percent, and from Rs 12 to 15 Lakhs 20 percent and over 15 Lakhs 30-percent, ” said Union Finance Minister. Revenue from taxes for the coming budget was set at 23.3 million, the government said. Nirmala Sitharaman stated, “The revised fiscal deficit is 6.4 Percent percent of GDP.” The fiscal deficit was estimated at 5.9 percent of GDP in FY24, according to FM Sitharaman. To pay for fiscal deficits in 2023-24, the net market borrowing from securities dated 2023-24 is estimated at 11.8 lakh crore.
“I would like to decrease the basic customs duty rates on products other than agricultural products and textiles by reducing them from 21 to 13. In the end, there are minor changes to the customs duties that are basic and surcharges, including cesses and surcharges, on certain products, such as bicycles, toys, and cars,” FM Nirmala Sitharaman declared.
Before the release to the public of Budget 2023.
There were a number of reports about the reform in the system of taxation. Standard deduction increases, an increase in exemption to 80C, and rejigging tax slab rate were among the hopes of the salaried class in the current Budget. Prior to this, taxpayers had the option of choosing between two tax systems to pay tax obligations. The new tax structure was revealed within Budget 2020. For the salaried classes, they were offered the choice between the tax system of standard deductions and exemptions as well as a new concessional tax system that does not include any deductions.
Up to 2.5 lakh is tax-free under both tax regimes. Anything between 2.5 lakh and Rs 5 lakh has been taxed at a rate of 5 percent under the old and the new tax system. Personal income of between 5 lakh to 7.5 lakh is taxed at a 10% percent under the new tax system. Prior to the announcement of Budget 2023, here are the income tax slabs that were looking like.
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