Finance Minister Nirmala Sitharaman has completely exempted seven lakh annual income from income tax in the new tax regime under the provision of enticing salaried employees in the General Budget 2023-24. In the old system, the income of three lakhs has been kept tax-free.
Not only this, the Finance Minister has given a big gift to women and senior citizens. It has been announced to start of Mahila Samman Bachat Patra Yojana.
Apart from this, big announcements have been made for farmers, youth and students. Presenting the budget, the Finance Minister said that this is the first budget of Amritkal. India’s economy is moving in the right direction and is headed toward a bright future.
Custom duty, cess and surcharge rate has been changed under the budget. Customs duty on toys has been reduced to 13 percent.
That means now toys will become cheaper. Apart from this, cycles have also been made cheaper. Customs duty on lithium-ion batteries has been relaxed.
Smt. Sitharaman also announced to increase the number of income tax slabs to five, under which no tax will be levied on the income slab of 0 to 3 lakhs, 5 percent tax rate for 3 to 6 lakhs, 10 percent for 6 to 9 lakh rupees.
Income tax will be levied at 15 percent on the slab of Rs 9 to 12 lakh and 20 percent on the slab of Rs 12 to 15 lakh annual income.
Apart from this, annual income above 15 lakhs will come under the tax net of 30 percent. The Finance Minister has tried to make the new tax system attractive to common tax payers, so that they have been encouraged to leave the old system and adopt the new system.
The maximum effective tax rate for high-income taxpayers has been reduced from 42.7 percent to 39 percent. Mrs. Sitharaman did not increase the long-term tax rates, which saw enthusiasm in the stock markets and the Bombay Stock Exchange index jumped nearly 1,000 points during the trade.
It has been announced to give triple exemption to the fund for Agniveers. Tax exemption will be given at all three stages of investment in Agniveer Kosh, income on investment and at the time of withdrawal of investment.