Eye on 2024? Income Tax to jobs creation, Modi’s Budget checks all boxes

Budget 2023-24 has announced relief for the young salaried class, senior citizens and women.

Eye on 2024? Income Tax to jobs creation, Modi’s Budget checks all boxes
Union Finance Minister Nirmala Sitharaman with Ministers of State Bhagwat Kishanrao Karad and Pankaj Chaudhary and officials poses for photographs on her arrival at Parliament for the presentation of the Union Budget 2023-24, in New Delhi, Wednesday, Feb. 1, 2023. (PTI Photo/Kamal Singh)

The Union Budget presented by Finance Minister Nirmala Sitharaman has come as a big boost to the Narendra Modi-led BJP government at the Centre ahead of the Lok Sabha elections scheduled for 2024. Not only does the Budget check all boxes in providing some degree of relief to the common man, but may have dealt a body blow to the Opposition’s criticism of the central government over its alleged “indifference” to the issues being faced by different sections of society.

FM Sitharaman today announced a new Income Tax regime, providing significant relief to the common man, particularly the salaried middle-class as well as pensioners. The government has also proposed a new investment scheme for women and laid special emphasis on job creation through an increase in capital expenditure.

Prime Minister Narendra Modi congratulated the FM for what he termed a “historic budget” and said that it addresses the aspirations of the middle class, women and rural growth.

Here’s what the Budget has for everyone:

Women – Mahila Samman Savings Certificate, a one-time new small savings scheme for a two-year period up to March 2025 with a deposit facility of upto Rs 2 lakh in the name of women or girls for two years at a fixed interest rate of 7.5 per cent with partial withdrawal option.

Middle class – Income Tax rebate increased to Rs 7 lakh, new tax slabs introduced. Persons in the new tax regime, with income up to Rs 7 lakh will not have to pay any tax. Tax structure rejigged in new regime by reducing the number of slabs to five and increasing the tax exemption limit to Rs 3 lakh.

Senior citizens – Pensioners, including family pensioners, will now avail the benefit of standard deduction in the new tax regime. Additionally, the limit of Rs 3 lakh for tax exemption on leave encashment on retirement of non-government salaried employees has also been increased to Rs 25 lakh.

Youth and jobs – New entrants to the job market will benefit from the income tax rebate limit of Rs 7 lakh. The increase in capital expenditure by 33 per cent to Rs 10 lakh crore to help create jobs.

Agriculture – Agriculture Accelerator Fund to be set up to encourage agri-startups by young entrepreneurs in rural areas. 23. agriculture credit target will be increased to Rs 20 lakh crore with focus on animal husbandry, dairy and fisheries.

Rural – PM Awas Yojana outlay enhanced by 66 per cent to over Rs 79,000 crore. Of this, Rs 54,487 crore has been allocated for PMAY-Rural, which is 172 per cent higher than the Rs 20,000 allocated for 2022-23. It is even higher than the revised estimate of Rs 48,422 crore for the past financial year.

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First published on: 01-02-2023 at 14:59 IST