Big relief for the Middle Class: No income tax up to Rs.7 lakh
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New Delhi, Feb 01: Union Budget 2023 was presented by Finance Minister Nirmala Sitharaman today. The Budget adopted "seven priorities" - inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power, and financial sector - to guide India through the "Amrit Kaal".
This year's Budget holds much significance as this is the last full Budget before the 2024 general elections. This is the Finance Minister's fifth Budget presentation since 2019.
The FM also announced an increase in the income tax rebate limit from Rs 5 lakh to Rs 7 lakh under the new tax regime. “Currently, those with an income of Rs 5 lakh do not pay any income tax and I propose to increase the rebate limit to Rs 7 lakh in the new tax regime,” the Finance Minister said while presenting the Budget. While a five percent tax will be levied on total income between Rs 3 lakh and Rs 6 lakh, 10 percent will be levied on Rs 6 lakh to Rs 9 lakh, 15 percent on Rs 9 lakh to Rs 12 lakh, 20 percent on Rs 12 lakh to Rs 15 lakh and 30 percent on Rs 15 lakh and above. Since taking charge in 2014, Prime Minister Narendra Modi has ramped up capital spending including on roads and energy, while attracting investors through lower tax rates and labor reforms, and offering subsidies to poor households to clinch their political support.
Nirmala Sitharaman on Tuesday tabled the Economic Survey for this financial year. It said that India's economic recovery from the Covid pandemic is complete and the economy is expected to grow in the range of 6 percent to 6.8 percent in the coming financial year 2023-24. This is in comparison to 7 percent this fiscal and 8.7 percent in 2021-22.