Highlights of the Union Budget 2023

Highlights of the Union Budget 2023

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Jaya
Jaya Sharma
Assistant Manager - Content
Updated on Mar 16, 2023 17:24 IST

Union Budget of India is the annual budget of the country that is presented every year in the beginning of the month of February (mostly the 1st of February). This budget is materialized before the beginning of the financial year in the month of April.

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This article will brief you about the highlights of Union Budget 2023.

Table of Contents

Union Budget 2023 Vision

This year’s union budget comes with the vision of ‘Amrit Kaal’ that is centered around the following three main objectives:

  • Growth and job creation
  • Strong and stable macro-economic environment
  • Opportunities for citizens (with a focus on the youth)

To achieve ‘Amrit Kaal’, the ‘Saptarshi’ initiative will be undertaken during the financial year 2023-24. The Saptarshi initiative is composed of seven objectives, including the following:

  1. Green Growth
  2. Youth Power
  3. Financial Sector
  4. Inclusive Development
  5. Reaching the last mile
  6. Infrastructure & Investment
  7. Unleashing the potential

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1. Initiatives To Be Undertaken

1. For Agriculture and Cooperatives

  • Digital public infrastructure: accessible, informative, and inclusive solutions for farmers
  • Agriculture accelerator fund: innovative startups in rural areas
  • Horticulture Clean Plant Program: boosting production of high-value horticultural crops
  • Widely available storage capacity: Enhancing farmer’s remuneration by enabling sales at appropriate times
  • Financial assistance: to be provided for sustainable micro irrigation in drought-prone areas in Karnataka 

2. Health

  • 157 nursing colleges will be established
  • Joint public and private medical research to be encouraged at selected ICMR labs
  • Sickle Cell Anaemia elimination mission to be launched
  • A new program for promoting research in Pharmaceuticals will be launched

3. Education

  • Physical libraries at Panchayat and ward levels are to be set up
  • National Digital Library to be set up
  • Teacher’s training via District Institutes of Education and Training to be revamped
  • 3 specialized AI in India to be set up in educational institutions
  • Recruitment for 740 Eklavya Model Residential Schools to be done

2. Allocation of Funds in the Union Budget

1. For Ministries

The following ministries are allocated funds (in descending order of funds): 

Ministry Funds (Lakh Crores)
Defence  5.94
Road Transport and Highways 2.70
Railways  2.41
Consumer Affairs Food and Public Distribution 2.06
Home Affairs 1.96
Chemicals and Fertilizers 1.78
Rural Development 1.60
Agriculture and Farmer’s Welfare 1.25
Communications 1.23

2. For Schemes

The following schemes have been allotted funds:

Scheme Funds ( in ₹ Crores)
Jal Jeevan Mission 70,000 
Eklavya Model Residential Schools 5,943
Pradhan Mantri Awas Yojana 79,590
Faster Adoption and Manufacturing of EVs 5,172
North East Special Infrastructure Development Scheme 2,491
Development of Pharmaceutical Industries 1,250

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3. Taxation

1. Tax Relief Through Union Budget

To offer tax relief to entrepreneurs and citizens, the following tax proposals have been given:

  • 45% of tax returns processed within 24 hours
  • The average processing period was reduced from an average of 93 days to 16 days
  • The exemption limit increased to ₹ 3 lakh
  • Rebate on income tax revised and increased from ₹ 5 lakhs to ₹ 7 lakhs as per the new tax regime
  • Surcharge on income above ₹ 5 crores reduced from 37% to 25% as per the new regime
  • Tax exemption limit increased to ₹ 25 lakh on leave encashment on retirement for the non-government salaried employees
  • 15% tax benefit to new cooperatives that will be involved in manufacturing till 31st March 2024 

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2. Income Tax Highlights in the Union Budget

Income range Income tax rate
Up to ₹ 3,00,000 Nil
₹ 3 lakh – 6 lakh 5% on income that exceeds ₹ 3 lakh
₹ 6 lakh – 9 lakh ₹ 15,000 + 10% on income > Rs 6 lakh
₹ 9 lakh – ₹ 12 lakh ₹ 45,000 + 15% on income > Rs 9 lakh
₹ 12 lakh – ₹15 lakh ₹ 90,000 + 20% on income > ₹ 12 lakh
Above ₹ 15 lakh ₹ 15 lakh + 30% on income > Rs 15 lakh

Slabs
Old Tax Regime Slab Rates for FY 22-23 (AY 23-24) New Tax Regime Slab Rates
Resident Individuals, HUF < 60 years & NRIs Resident Individuals, HUF > 60 and < 80 years Resident Individuals, HUF > 80 years Before Budget 2023(until 31st March 23) After Budget 2023(From 1st April 23)
Upto ₹2,50,000
₹2,50,000 – ₹3 lakh 5% 5%
₹3 lakh – ₹5 lakh 5% 5% (tax rebate u/s 87A) 5% 5%
₹5 lakh – ₹ 6 lakh 20% 20% 20% 10% 5%
₹ 6 lakh – ₹ 7,50,000 20% 20% 20% 10% 10%
₹ 7,50,000 – ₹ 9lakh 20% 20% 20% 15% 10%
₹ 9 lakh – ₹10 lakh 20% 20% 20% 15% 15%
₹ 10 lakh  – ₹ 12 lakh 30% 30% 30% 20% 15%
₹ 12 lakh – ₹ 12,50,000 30% 30% 30% 20% 20%
₹ 12,50,000 – ₹ 15 lakh 30% 30% 30% 25% 20%
> ₹ 15 lakh 30% 30% 30% 30% 30%

Deductions Allowed 

Details Old Tax Regime New Tax regime (until 31st March 2023) New Tax Regime (From 1st April 2023)
Income level for rebate eligibility ₹ 5 lakh ₹ 5 lakh ₹ 7 lakh
Effective Tax-Free Salary income ₹ 5.5 lakh ₹ 5 lakh ₹ 7.5 lakh
Standard Deduction ₹ 50,000 ₹ 50,000
HRA Exemption X X
Rebate u/s 87A ₹ 12,500 ₹ 12,500 ₹ 25,000
Other allowances including food allowance of ₹ 50/meal subject to 2 meals a day X X
Leave Travel Allowance  X X
Entertainment Allowance Deduction and Professional Tax X X
Standard Deduction (₹ 50,000) X
Interest on Home Loan u/s 24b on self-occupied or vacant property X X
Perquisites for official purposes
Interest on Home Loan u/s 24b on let-out property
Deduction u/s 80C (EPF|LIC|ELSS|PPF|FD|Children’s tuition fee etc) X X
Employee’s (own) contribution to NPS X X
Employer’s contribution to NPS
Medical insurance premium – 80D X X
Disabled Individual – 80U X X
Interest on education loan – 80E X X
Interest on Electric vehicle loan – 80EEB X X
All contributions to the Agniveer Corpus Fund – 80CCH
Donation to Political party/trust etc – 80G X X
Savings Bank Interest u/s 80TTA and 80TTB X X
Other Chapter VI-A deductions X X
Deduction on Family Pension Income
Gifts upto ₹ 5,000
Exemption on voluntary retirement 10(10C)
Exemption on gratuity u/s 10(10)
Exemption on Leave encashment u/s 10(10AA)
Daily Allowance
Conveyance Allowance
Transport Allowance for a specially-abled person
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About the Author
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Jaya Sharma
Assistant Manager - Content

Jaya is a writer with an experience of over 5 years in content creation and marketing. Her writing style is versatile since she likes to write as per the requirement of the domain. She has worked on Technology, Fina... Read Full Bio