Finance Minister Nirmala Sitharaman unveiled her government’s last full Budget on Wednesday before India heads for the 2024 Lok Sabha elections. She termed this year’s Budget as the first one in India’s ‘Amrit Kaal’, which will be a period of rapid economic and social progress in the coming years.

The middle class had been primarily hoping for higher deductions under section 80C, a simpler capital gains tax regime, a separate tax deduction section for payments of home loans, and more benefits under the new income tax regime.

Nominal relief for salaried tax payers

Among a slew of landmark announcements, Sitharaman’s decision to increase the rebate from Rs 5 lakh to Rs 7 lakh under Section 87A has been the most welcoming one. Individuals opting for the new income tax regime and having an income up to Rs 7 lakh will not have to pay any taxes.

The new tax regime was first launched in 2020 with fewer deductions than the old tax regime, which was the prime reason why the salaried class didn’t take much to it. The changes in the tax slab is meant to nudge salaried taxpayers towards the new regime.

Under the old tax regime, one can avail deductions comprising section 80 C (deduction up to Rs 1.5 lakh in particular savings schemes), 80D (Health Insurance up to Rs 25,000) and interest on home loan under Section 24B (Rs 2,00,000 deduction) and Rs 50,000 under NPS.

Economic empowerment for women

Women and senior-citizens have also received benefits in this Budget with the finance minister announcing the ‘Mahila Samman Saving Certificate', which carries a fixed interest rate of 7.5 per cent for two years.

The deposit can be made in the name of a woman or a girl child. The upper limit of the deposit amount has been kept at Rs 2 lakh and the scheme will have a partial withdrawal facility as well.

Under the PM-Kisan Samman Nidhi, assistance worth Rs 54,000 crore has been extended to 3 crore rural women farmers in order to economically empower them.

Increase in deposit limit for Senior Citizen Savings Scheme

The Centre proposed to double the deposit limit for Senior Citizen Savings Scheme to Rs 30 lakh and Monthly Income Account Scheme to Rs 9 lakh. The scheme seeks to provide security to investors looking for fair returns amid high inflation without posing any credit risk.

National Digital Library to make up for losses during pandemic

The Finance Minister also laid out a plan for a national digital library for children and adolescents. This decision comes after a report published by the Annual Status of Education Report (ASER), which noted that the reading capabilities of primary school children have suffered during the pandemic.

The Budget was primarily focused on capital spending, with Railways getting the largest ever boost of Rs 2.40 lakh crores and the Centre announcing plans to restart 50 additional airports, helipads, water aero drones, and advanced landing grounds.