Key Highlights for 2023 Union Budget

India's Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24. Watch the video for the key highlights.

India's Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 on Wednesday. 

Sitharaman was presenting her fifth full Budget after she took over as Finance Minister in July 

2019. Whenever the budget is announced everyone is just waiting to see the changes in the personal income tax. 

Personal Income Tax:

  1. Earlier those earning Rs 5 lakh after deduction, did not have to pay tax. Now there is good news. Those earning Rs 7 lakh after deductions, will not have to pay tax. This is only for salaried income. 

  2. In 2020, Sitharaman had introduced six income slabs, starting from Rs 2.5 lakh. 

  Now she has reduced the income slabs to 5 and increased the tax exemption limit to Rs 3 lakh. 

  1. Earlier the government of India had announced the Senior Citizens Saving Scheme (SCSS). In this scheme the senior citizens above the age of 60, could deposit upto ?15 lakh and got interest of 7.40% per annum. This SCSS interest rate is comparatively higher than normal returns being given by bank fixed deposits. The SCSS interest is payable on a quarterly basis. However, the Senior Citizens Saving Scheme has a lock period of five years. But, in case of financial requirements, premature withdrawal is allowed. Now the FM announced that the deposit limit has been increased to Rs 30 lakh. 

  2. You all know that the government has made it mandatory for linking vc. EPF withdrawals are exempted from taxation. Earlier those who wanted to withdraw their EPF money, but had not linked Aadhar & Pan, had to pay 30% TDS. Now the TDS percentage has been reduced to 20%. 

  3. Earlier people who earn more than Rs 5 crore had to pay a 37% tax surcharge. Now it has been reduced to 25% (Rich People Photo)

  4. Like every year custom duty has been increased on cigarettes. So cigarettes that cost Rs 18 may cost Rs 20 now. 

  5. For parents, there was some good news in the budget as basic custom duties have been reduced on toys, bicycles. 

  6. Many electronic items have become cheaper as custom duty on these have been reduced. 

  7. Gold, silver and platinum will be expensive as custom duty has become expensive. However, the government reduced basic customs duty on seeds used in manufacturing of lab-grown diamonds. 

  8. The proposed points will be soon approved by the parliament. Once approved it will be applicable from 1st April 2023. For more updates related to Income tax, keep watching ISH News. 

If after watching this entire video, you think why should I pay tax, click on this and watch our video about the importance of paying tax. 

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