New Income Tax Slab Budget 2023 Updates & Highlights: Tax rebate hiked, slabs reduced

Vimal Nadar, Head of Research, Colliers India, says: “The increase in outlay towards PMAY resonates with the government's committed mission to meeting the housing shortage in the country. This will result in increased investment and heightened activity in the construction sector; opportunities galore for contractors”

Arpit Mehrotra, MD, office services, south India & head of flex, India, Colliers says: “The outlay for the PMAY scheme has been increased from 66% to Rs 79,000 crore, which represents a significant increase in funding for the program. This increase in funding will likely help the government achieve its goal of providing affordable housing to more people and contribute to the overall growth and development of the country”

In her Budget Speech 2023, FM Nirmala Sitharaman says that the KYC process will be simplified by taking a risk-based approach. A one-stop solution for updating of identity will be established using Digilocker service and Aadhaar as foundational identity. The Permanent Account Number (PAN) will be used as a common identifier for all digital systems of govt agencies.

In Budget Speech 2023, FM Sitharaman proposes setting up a National Digital Library for children and adolescents for facilitating the availability of quality books across geographies, languages, genres and levels and device-agnostic accessibility.

In Budget Speech 2023, FM Sitharaman proposes a 66% increase in the budgetary allocation for PM Awas Yojana. She says Rs 79,000 crore will be allocated for PMAY.

In Budget Speech 2023, FM Sitharaman says over 38,000 teachers will be appointed for Eklavya Model Schools in the next five years.

In Budget Speech 2023, FM Sitharaman says the Government will take promotion of tourism on a mission mode with active participation of states, the convergence of Govt programs and public-private partnerships

In Budget Speech 2023, FM Sitharaman says India offers immense attraction for domestic as well as foreign tourists. There is a large potential to be tapped in tourism. The sector holds huge opportunities for jobs and entrepreneurship for youth in particular.

In Budget Speech 2023, FM Sitharaman says the Governments efforts since 2014 have ensured for all citizens, a better quality of life and a life of dignity. The per capita income has more than doubled to Rs 1.97 lakh. In these 9 years, the Indian economy has increased in size from being 10th to 5th largest in the world.

In Budget Speech 2023, FM announces 7 principles as the guiding lights for the Budget in ‘Amrit Kaal’. These are: Inclusive Development, Reaching the Last Mile, Infrastructure, Unleashing Potential, Youth Power, Green Growth and Financial sector

New PM Vikas scheme announced. In Union Budget Speech 2023, Finance Minister Nirmala Sitharaman announces a new PM Vikas scheme for the benefit of marginal workers engaged in creating handicrafts and other items.

In Union Budget Speech 2023, Finance Minister Nirmala Sitharaman says there has been a massive rise in EPFO scheme enrolments, UPI Payments, PM Jan Dhan Account and Insurance Cover.

Union Budget Speech 2023-24 by Finance Minister Nirmala Sitharaman has started. FM says, “Indian Economy has increased from 10th to 5th position in last 9 years.”

Union Budget Speech 2023 by Finance Minister Nirmala Sitharaman has started. FM says, “This is the first Budget in Amrit Kaal. This Budget will build upon previous Budgets for India @100.”

Union Budget Speech 2023-24 by Finance Minister Nirmala Sitharaman will start soon. Stay tuned for Budget 2023 Income tax changes, impact and analysis. Meanwhile, Karnataka CM Basavaraj Bommai tells news agency ANI that FM Sitharaman will present a pro-people Budget that will support the growth of the economy.

S Anand, CEO and Co-Founder of PaySprint says, “Fintech startups are hopeful for GST exemptions until a certain level of revenue is achieved. Liberalisation of the tax structure along with depreciation on the fixed assets used by Fintechs, can go a long way in promoting advancement. Announcement of tax benefits for research & development activities would bolster the ideation and execution of differentiating financial products & services for the masses.”

Ramani Sastri, Chairman & MD of Sterling Developers, says: “Currently, the tax cap on housing loans is INR 2 lakh and it has been the same from last few years. During these years there has been inflation as well. Hence the government should raise the deduction limit for interest payment on home loans from the existing Rs 2 lakh a year to Rs 5 lakh which will add momentum to housing demand, particularly in the affordable segment. There is a specific need for income tax relief on a second home and positive measures with regard to long-term capital gains, which will benefit home buyers in a big way and also stimulate the real estate sector.”

According to Tax2win’s Abhishek Soni, under section 44ADA, the minimum income professionals are required to show 50% of Gross Receipts, which increases the tax burden on small professionals. Professionals are expecting to reduce this rate to 40% to avoid genuine hardship to professionals.

Vivek Jalan, Partner at Tax Connect Advisory says the high personal tax rate for individuals in India stands out as an exceptionally high rate as compared to other countries. The salaried class and the middle class bear the highest brunt of high Income Tax.

Stock market investors are waiting for cues from Finance Minister Nirmala Sitharaman’s Budget Speech 2023. Nifty on Tuesday rose 126.05 or 0.71% to 17,788.20 and BSE Sensex surged 375.02 pts or 0.63% to 59,924.92. Check Live Updates

Finance Minister Nirmala Sitharaman has the opportunity to make the New Tax Regime more attractive in her Budget 2023 speech. She can do so by adding elements that will prove necessary tax savings on home loans, provident fund, insurance, rent, health expenses, school fees etc, says Adhil Shetty of Bankbazaar. Read more insights from Shetty here

Prashant Joshi, Managing Director and Head-Consumer Banking Group, DBS Bank India, says, “Over the past few years, the government has significantly strengthened the ecosystem for digital payments in the country. This momentum has brought a larger section of the population within the fold of the formal banking & financial services. We anticipate that the government will propose measures to incentivise digital transactions, thereby accelerating adoption. Strengthening the last-mile delivery of financial services will continue to remain an area of focus.”

You can calculate your income tax liability for the Assessment Year 2023-24 by using the following Income Tax Calculator. It will be updated as soon as the FM announces new tax slab or rates. Check out the Latest Income Tax Calculator Here

“The economic survey has projected FY 2024 growth at 6-6.8% This seems a tad stretched given the fact that there is a global slowdown, specifically in global exports. It also comes at a time when domestic demand is slowing down initially and we need to be fiscally prudent, especially after almost 3 years of fiscal breach ( globally too) due to the pandemic phase. The survey also alludes to the fact that the tightening cycle may remain prolonged, which means higher interest rates for a longer period of time. All eyes now on the budget which could determine the trajectory of growth as also direction of interest rates given the borrowing programme that will be announced tomorrow. Key to watch will be the gross borrowing numbers, which we estimate that it should be Rs 16 lakh crore.”

Abhay Tewari, Managing Director & CEO of SUD Life Insurance says, “Requesting government to waive income tax on annuity income upto 25 thousand monthly for age bracket of 60 years and above to enhance old age income security for all. This should be over and above the current tax exemption on income up to Rs 5 lakh per year. This will boost the pension and Life insurance sector and help the government to mobilise long term funds required for infrastructure creation. An important point to be noted here is that both the life annuity plans with or without return of capital, are taxable under current structure wherein principal component returned on a monthly basis in life annuity plans without return of capital is being double taxed at the hand of the investor. The proposed waiver on annuity income of upto 25 thousand per month will help to address the above issue upto certain extent.”

SBI Research thinks that the age limit for subscribing to the Sukanya Samrddhi Yojana account should be increased to 12 years as a one-time measure to boost savings and help in Government’s efforts for containing fiscal deficit. Currently, the SSY account opening age limit is 10 years. Read details

Tax experts say that a lot of confusion arises from the two tax regimes. Therefore the government should work on it. There is also a need to relook at the new tax regime because it has the same threshold limit of Rs 2.5 lakhs as the old tax regime. The tax slab has not changed since 2013-14 even as inflation has multiplied year by year. Read more about how frozen tax slabs are eating into your savings

Over 80 million taxpayers in India and salaried employees are having several big expectations from FM Sitharaman. Here are the 10 biggest personal tax changes expected by them in Budget 2023.

Welcome to FinancialExpress.Com's Budget 2023 Income Tax Live Blog. Finance Minister Nirmala Sitharaman will present her fifth Budget Speech at 11 am in Parliament. Tax-related announcements are generally made towards the end of the Budget speech. So you may have to wait till around 11.30 am-12 pm for Income Tax updates. Till then, let's have a look at the expectations and all that the FM and PM Modi has said till now in the run-up to the Budget Speech 2023.