Rising Bharat – Budget Highlights for FY 2023-24

budget highlights for FY 2023-24

The 2023 Union Budget of India was presented by the Minister of Finance of India on February 01, 2023. This was the fourth budget of the Narendra Modi-led NDA government’s second term, starting in 2020. The Economic Survey for 2022–2023 was released on January 31, 2023. Budget 2023 is now more beneficial for salaried employees.

Deficit of 6.4% (0.3%) (in 2022)

Presented by Finance Minister – Smt. Nirmala Sitharaman

Total Expenditures: ₹39.45 trillion (US$490 billion) (in 2022)

Budget Highlights for FY 2023-24

  • The limit of Basic exemption has been hiked to Rs.3 lakh from Rs 2.5 which is currently applicable under the new income tax regime.
  • An increase of rebate under Section 87A as per the new tax regime from the current income of Rs.5,00,000 to Rs.7,00,000 lakhs.
  • As per the sources and announcements – 5 IT slabs will be effective in FY 2023-24, Currently 6 IT slabs are being observed.
  • Taxpayers opting for the new income tax regime and having income up to Rs.7,00,000 lakhs need not pay any income tax.
  • The benefits under section 80-IAC are now extended for startups formed before March 2023.
  • As per the rebate under Section 87A, Salaried employees having net taxable income up to Rs 5,00,000 is not required to pay any tax in the old tax regime.
  • Cess will be levied at a rate of 4% on the income tax amount.
  • Surcharge will be levied on incomes above Rs 50 lakh.
  • According to the law of income tax
    • Salaried Employees can select a new tax regime for every financial year.
    • Business individuals cannot choose the tax regime to change every year. If they select the new tax regime, they can switch to the old tax regime only once in a lifetime.

The following income tax slabs apply in the new tax regime for FY 2023-24 (AY 2024-25)

Income Tax Slab Income Tax Rate
Up to Rs. 3,00,000 No Tax
Rs. 3,00,001 – Rs. 6,00,000 5%
Rs. 6,00,001 – Rs. 9,00,000 10%
Rs. 9,00,001 – Rs. 12,00,000 15%
Rs. 12,00,001 – Rs. 15,00,000 20%
Above Rs. 15,00,001 30%

As a matter of fact, The Union Budget 2023 has been applauded as a positive response from the HR industry as it mainly focused on skilled manpower.



What are TRACES?

Traces Expanded abbreviation – TDS reconciliation analysis and correction enabling system It is a utility provided by the Income Tax Department for a Taxpayer and

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