Union Budget 2023: Check New Tax Slabs For New Tax Regime, Costlier, Cheaper Items And Key Announcements

Sitharaman also mentioned that the budget primarily focussed on four major points: focus on tourism, empowering women, those toiling traditionally through their hands for the country and green growth.

The Amrit Kaal’s first budget is what Prime Minister Narendra Modi calls the Union Budget 2023. He said that the budget would prioritise the deprived and fulfil the dreams of aspirational farmers, society and middle-class people. Finance minister Nirmala Sitharaman presented the Union Budget 2023-24. She said this budget envisions a prosperous and inclusive India, where the fruits of development will reach all citizens and regions, especially women, youth, farmers, Scheduled Castes, Scheduled Tribes and OBCs. She also emphasised that the Indian economy is on the right track and is heading towards a bright future, despite various challenges.

Despite the massive global slowdown caused by COVID-19 and Russia-Ukraine War, the economic growth is estimated at 7%. Sitharaman also mentioned that the budget primarily focussed on four major points: focus on tourism, empowering women, those toiling traditionally through their hands for the country and green growth.

What are the major takeaways from the Union budget for 2023?

  • The vision for Amrit Kaal Blue Print for an empowered and inclusive economy is presented by the Union Budget 2023-24.
  • Rs 2,200 crore will be allocated to boost the availability of disease-free, quality planting material for the growth of horticulture crops under the Atmanirbhar clean plant program.
  • An increase of 33% to Rs 10 Lakh crore is made in capital investment outlay
  • Effective capital expenditure at 4.5% of GDP
  • In 2023-24 the fiscal deficit is estimated to be 5.9% of the GDP
  • Real GDP to grow at 7% and exports at 12.5%
  • The government will establish 157 new nursing colleges
  • To create a pesticide manufacturing network and national-level distributed micro-fertilizer, 10,000 bio-input resource centres will be set up.
  • Establishment of Urban Infrastructure Development Fund (UIDF) through the use of priority sector lending shortfall
  • Under the Gobardhan scheme, 500 new ‘Waste to Wealth’ plants are to be established at a total investment of Rs 10.000 crore
  • Mantri Kausal Vikas Yojana 4.0 to be launched
  • Basic custom duty tax on goods other than textiles and agriculture to be reduced from 21 to 13
  • The topmost priority of the Modi government is inclusive development, which is also the first of the ‘saptarishis’, or the seven goals.
  • Mahila Samman Bachat Patra scheme with a 7.5% interest rate, deposit facility of up to Rs 2 lakh, and Senior Citizen Savings scheme limit increased up to Rs 30 Lakh
  • National digital library to be established for children
  • The new initiative will be taken to promote domestic tourism with the name ‘Dekho Apna Desh’
  • Interstate transmission system for grid integration and evacuation of 13 GW renewable energy from Ladakh to be constructed with an outlay of Rs20,700 crore
  • The unified skill India Digital platform to be launched for skilling will be further expanded
  • Work will be done on mission mode to eliminate sickle cell anaemia by 2047

New tax regime

The rebate limit for individual taxpayers has increased from Rs 5 lakh to Rs 7 Lakh a year. As per NDTV, Sitharaman said, “Currently, those with income up to ₹ 5 lakh do not pay any income tax in both old and new tax regimes. I propose to increase the rebate limit to ₹ 7 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to ₹ 7 lakh, will not have to pay any tax.”

New Slabs

  • Rs 0-3 Lakh- No Tax
  • Rs 3-6 Lakh- 5% tax
  • Rs 6-9 Lakh- 10% tax
  • Rs 9-12 Lakh- 15% tax
  • Rs 12-15 Lakh- 20% tax
  • Above Rs 15 lakh- 30% tax

With changes in duties and taxes under the Union Budget, some items will get cheaper and some costlier.

List of items getting costlier

  • 16% hike in taxes on cigarettes
  • Essential import duty increased to 25% from 10% on compound rubber
  • Customs duty hiked on articles made from gold bars
  • Custom duty increased to 15% from 7.5% on electric kitchen chimney

List of items getting cheaper

  • Custom duty cut to 2.5% on parts of open cells of TV
  • Reduction in customs duty on the import of specific inputs for mobile phone manufacturing
  • Lowering of essential customs duty on seeds used in the manufacturing of lab-grown diamonds
  • Reduction of customs duty on shrimp feed to boost exports