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FM announces big infrastructure push

Union Budget 2023-24: Income tax rebate limit hiked from Rs 5 lakh to Rs 7 lakh under new tax regime

New tax regime will be the default tax regime, but old regime to continue; big push to infrastructure, Rs 2.40 lakh allocated for railways, the 'highest-ever'

Union Finance Minister Nirmala Sitharaman presents the Union Budget 2023-24 in the Lok Sabha, in New Delhi. PTI

Our Web Desk
Published 01.02.23, 12:50 PM

Finance Minister Nirmala Sitharaman announced an increase in the income tax rebate limit from Rs 5 lakh to Rs 7 lakh under the new tax regime, adding that the new tax regime will now be the default tax regime.

While presenting the Union Budget 2023-24 in Parliament on Wednesday, the FM also reduced the number of tax slabs in the new tax regime.

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These are: Tax for income of Rs 0-3 lakh is nil; income above Rs 3 lakh and up to Rs 5 lakh to be taxed at 5%; income of above Rs 6 lakh and up to Rs 9 lakh to be taxed at 10%; income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20%; and income above Rs 15 lakh to be taxed at Rs 30%.

The government estimated the fiscal deficit for 2023-24 at 5.9 per cent of the GDP, the FM said.

Announcing the “highest-ever outlay, nine times the outlay made in 2013-14”, the finance minister said that Rs 2.40 lakh have been allocated for Indian Railways. She said this was the “highest-ever outlay”, nine times the outlay made in 2013-14.

The capital investment outlay has been increased by 33 per cent to Rs 10 lakh crore, which will account for 3.3 per cent of the GDP. In a boost for states, Sitharaman said that the 50-year interest-free loan to state governments will continue for a year more. The NITI Aayog’s state support mission will be continued for three years, she added.

The Union Budget 2023 focused on seven priorities, which the Finance Minister called the “Saptrishis guiding us through Amrit Kaal”. These are: inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector”.

Here are the highlights of the Union Budget 2023-24

Nirmala Sitharaman Union Budget 2023-24 Income Tax
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