While presenting her last budget of Modi 2.0 in the parliament, finance minister Nirmala Sitharaman said that the economic agenda for the government's vision focuses on facilitating opportunities for citizens, providing strong impetus to growth and job creation as well as strengthening macroeconomic stability
In her speech lasting for an hour in presenting the Union Budget for 2023-24 on Wednesday, Sitharaman said, "Seven priority areas of the Budget are inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth and financial sector."
She further informed the nation that the agriculture accelerator fund for agri startups will be set up. The agricultural credit target will be increased to Rs 20 lakh crore with a focus on animal husbandry, dairy and fisheries, the finance minister informed.
With an eye on GE 2024, Sitharaman also announced that a cooperative-based model has been adopted to support the small and marginalised farmers.
Finance minister Nirmala Sitharaman announced no tax for those with an annual income of up to Rs 7 lakh under the new tax regime but made no changes for those who continue in the old regime that provides for tax exemptions and deductions on investments and expenses such as HRA.
In a push for salaried class taxpayer to switch to a new tax regime where no exemptions on investments is provided, the finance minister in her budget for 2023-24 allowed a standard deduction of Rs 50,000 under the new regime.
The old tax regime provides for a similar deduction and no tax on income up to Rs 5 lakh. Also, the basic exemption limit has been raised to Rs 3 lakh from Rs 2.5 lakh. A Rs 2.5 lakh basic exemption limit is prescribed in old tax regime.
The move will lead to a saving of Rs 33,800 for those earning up to Rs 7 lakh annually and opting for new tax regime. Those with income up to Rs 10 lakh would save Rs 23,400 and Rs 49,400 saving would accrue to those earning up to Rs 15 lakh.
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