Top 11 highlights of Budget 2023
- Government to double the deposit limit for Senior Citizen Savings Scheme to Rs 30 lakh with an interest rate of 8% and the Monthly Income Account Scheme to Rs 9 lakh for a single account and 15 lakhs for a joint account.
- A one-time new small saving scheme for women will be made available for two years only up to March 2025, in the name of women. Deposits facility up to Rs. 2 Lakh with a lock-in period of two years, with an interest rate of 7.5% with partial withdrawal allowed.
- In regard to middle-class citizens Tax rebate limit from Rs 5 lakh to Rs 7 lakh in the new tax regime. This means no tax up to 7 lakhs of Income in the new tax regime. The new tax regime will be the default regime, but you have option to select OLD regime.
New slabs under New Tax Regimes
- Government proposes to reduce highest surcharge rate from 37 % (for income above 5 Cr) to 25% in new tax regime. That means now the highest surcharge will remain 25% for income above 2 Cr.
- Standard Deduction of Rs. 50,000 from salary has been now allowed in the New Tax Regime, which early was not involved in new tax regime.
- The exemption limit of leave encashment received at the time of retirement has been increased to 25 lakhs from 3 lakhs for non-government employees. As for Govt employee’s whole amt was already exempt.
- What will be Cheaper?
- Mobile phones
- Lab-grown diamonds
- Shrimp feed
- Machinery for lithium-ion batteries
- Raw materials for EV industry
- What will be costlier?
- Silver- Compounded rubber
- Imitation Jewlery
- Articles made from gold bars
- Imported bicycles and toys
- Imported kitchen electric chimney
- Imported luxury cars and EVs
- Green energy was a big talking point, implementing many programmers for green fuel, green energy, green farming, green mobility, green buildings, and green equipment, and policies for efficient use of energy across various economic sectors.
- Establishment of 157 new nursing colleges. We only have 1.7 nurses per 1,000 people. And it’s way short of the recommended 3 per 1,000. We need at least 4.3 million more nurses by 2024 to be in a safe space.
- A Pan India National Apprenticeship Promotion Scheme to provide Stipend support to 47 Lakh youth in 3 years. Also, Govt will launch Skill youths in new age coursers like Drones, 3D Printing, Artificial Intelligence, etc. There’s a big plan to establish a National Digital Library for children and adolescents.
India’s economic growth is estimated at 7% for FY23. India’s economy has reached from 10th to 5th largest economy in the world. Per capita income has increased more than doubled in the last 5 years at ₹1.97 lakhs. India soon could become the World’s 3rd largest economy in the next decade.