India Union Budget 2023-24 Income Tax Rebate Highlights, Expectations, PDF

Nirmala Sitharaman, the Minister of Finance, just presented the government with its final comprehensive Union Budget 2023-24 before the general election in 2024. She indicated that taxpayers will receive a significant amount of assistance and that both infrastructure and capital spending would receive a significant amount of focus.

The focus of the Budget for 2023–2024 remained on increasing capital expenditures, which demonstrates that the Modi government places high importance on the construction of roads, motorways, and rail lines.

The fact that the government has made adjustments to the new income tax system in order to benefit the middle class is evidence that it wants people to stop using the old system and start using the new one. The Finance Minister (FM) did not deviate from the plan that was presented in the Budget for the fiscal deficit, which established a goal of 5.9% for FY 24 and the same goal for the current year.

Union Budget 2023-24 At A Glance

  • Union Budget 2023-24 Presents Vision for Amrit Kaal-Blue Print for An Empowered and Inclusive Economy
  • Three-Pronged Focus Driven by Four Transformative Opportunities Constitute Foundation of Amrit Kaal
  • Capital Investment Outlay Increased By 33% To Rs. 10 Lakh Crore
  • Effective Capital Expenditure At 4.5% Of GDP
  • Fiscal Deficit Estimated to Be 5.9 % Of GDP In Be 2023-24
  • Real GDP to Grow At 7% In FY2022-23
  • Exports To Grow At 12.5% In FY 2023
  • Atmanirbhar Clean Plant Program with Outlay Of ₹2200 Crore to Be Launched to Boost Availability of Quality Planting Material for High Value Horticultural Crops
  • 157 New Nursing Colleges to Be Established
  • Outlay For Pm Awas Yojana Enhanced By 66% To Over Rs. 79,000 Crore
  • Highest Ever Capital Outlay of Rs. 2.40 Lakh Crore Provided for Railways
  • Urban Infrastructure Development Fund (UIDF) To Be Established Through Use of Priority Sector Lending Shortfall
  • 500 New ‘Waste to Wealth’ Plants Under Gobardhan Scheme to Be Established at Total Investment of Rs 10,000 Crore
  • 10,000 Bio-Input Resource Centres to Be Set-Up up, Creating National-Level Distributed Micro-Fertilizer and Pesticide Manufacturing Network
  • Mantri Kaushal Vikas Yojana 4.0 To Be Launched
  • Union Budget 2023-24 Provides Substantial Relief for Personal Income Tax
  • New Slabs Announced Under the New Tax Regime
  • Resident Individuals with Total Income Upto ₹ 7 Lakh Will Not Have to Pay Any Income Tax Under New Tax Regime
  • A Standard Deduction Of ₹ 50,000 Will Also Be Available to Salaried Individuals Under the New Tax Regime
  • New Tax Regime for Individuals and HUF Will Be the Default Regime
  • Limit For Tax Exemption on Leave Encashment on Retirement of Non-Government Salaried Employees Increased To ₹ 25 Lakh
  • Slew Of Proposals Announced for The Cooperative Sector
  • Indirect Tax Proposals Aim to Promote Exports, Boost Domestic Manufacturing, Enhance Domestic Value Addition, Encourage Green Energy and Mobility
  • Number Of Basic Customs Duty Rates on Goods, Other Than Textiles and Agriculture, Reduced From 21 To 13

For Detailed Analysis of Budget 2023 PDF Click Here

7 Priorities of this Budget

Budget 2023
  • The Budget adopts the following seven priorities. They complement
  • each other and act as the ‘Saptarishi’ guiding us through the Amrit Kaal.
  • 1) Inclusive Development
  • 2) Reaching the Last Mile
  • 3) Infrastructure and Investment
  • 4) Unleashing the Potential
  • 5) Green Growth
  • 6) Youth Power
  • 7) Financial Sector

New Income Tax slabs Announced

Nirmala Sitharaman, who is in charge of finances, has stated that there will be modifications to the Budget 2023 income tax brackets under the new tax system that is being implemented. Under the new tax system, a person’s income that does not exceed Rs 7 lakh, inclusive of any rebates, will not be subject to taxation.

An individual who has a yearly income of 9 lakh rupees will only be required to pay a tax liability of 45,000 rupees under the new system. Under the current system, this only accounts for 5% of the income of a taxpayer.

A deduction in the amount of Rs 52,500 is considered to be the standard in the new tax system. In addition to this, the FM stated that the new tax system would be one that would be utilised automatically.

New Income Tax Slabs 2023 – 24

Total Income (Rs)Rate (per cent)
Up to 3,00,000Nil
From 3,00,001 to 6,00,0005
From 6,00,001 to 9,00,00010
From 9,00,001 to 12,00,00015
From 12,00,001 to 15,00,00020
Above 15,00,00030

Nirmala Sitharaman, the finance minister, began the final full presentation of the Modi government’s Budget by saying, “This is the first Budget of Amrit Kaal.” This marked the end of the Modi government’s tenure in power. The Indian economy is considered a shining example of economic growth across the globe, according to the FM.

India’s economy is expected to expand by 7% during the current financial year, making it the fastest-growing major economy. During her address on the budget, Sitharaman stated that the Indian economy is headed in the right direction and has a promising future ahead of it.

The average salary of a person has increased to 1.97 lakh rupees. During her speech for the Union Budget, Sitharaman mentioned that in the past nine years, India’s economy has expanded from being the 10th largest in the world to be the 5th largest.

The presentation of the India Budget 2023 India takes place at a time when the vast majority of the world’s major advanced economies are exhibiting sluggish growth and may even be on the approach of entering a recession. In light of this information, the Economic Survey continues to project that India’s GDP will rise between 6% and 6.8%, maintaining its position as the economy that is expanding at the fastest rate globally.

According to the Survey, India has also completely recovered from the shock caused by the Covid-19 pandemic, which is also good news for the growth of the GDP. The amount of Rs 2.40 lakh crore was given as a capital investment to the Indian Railways for the very first time.

According to Sitharaman, this is the amount of money that has ever been spent on the country’s railways. Nirmala Sitharaman, the Minister of Finance, has stated that the amount spent on capital projects will increase significantly.

Because of the Union Budget, the total amount that has been spent on various capital projects has increased to 10 lakh crore, which is an increase of 33 per cent. This accounts for 3.3% of the total GDP.

The Minister of Finance has also stated that PM Awaas Yojana will receive a significant boost. During her presentation on the Budget, Sithraman discussed how the food security programme would be extended for one more year. She also made an announcement regarding the beginning of a programme for primitive and vulnerable tribal communities, as well as steps for agri-startups and fisheries.

But Sitharaman also has the vital responsibility of not just maintaining the fiscal deficit objective of 6.4% of GDP but also devising a plan to drive it down even further over the following five years, getting closer to the FRBM target in the process.

to read Budget 2023 Hindi Click Here

Budget at a Glance

Budget 2023

Benefiting Our Hard-Working Middle Class

Budget 2023
India Union Budget 2023-24 Income Tax Rebate Highlights, Expectations, PDF

Change Of Tax Structure in New Personal Income Tax

Budget 2023
India Union Budget 2023-24 Income Tax Rebate Highlights, Expectations, PDF

Vision For Amrit Kaal

Budget 2023
India Union Budget 2023-24 Income Tax Rebate Highlights, Expectations, PDF


Budget 2023
India Union Budget 2023-24 Income Tax Rebate Highlights, Expectations, PDF

Direct Tax and Indirect Tax Proposals

Budget 2023
India Union Budget 2023-24 Income Tax Rebate Highlights, Expectations, PDF
Budget 2023
India Union Budget 2023-24 Income Tax Rebate Highlights, Expectations, PDF
Budget 2023
India Union Budget 2023-24 Income Tax Rebate Highlights, Expectations, PDF

Budget Estimates 2023-24

Ms. Nirmala Sitharaman stated, at the conclusion of Part One of the General Budget, that the overall amount of money coming in, excluding loans, and the total amount of money going out is anticipated to be Rs. 27.2 lakh crore and Rs. It is estimated that the nett income from taxes is 23,300,000,000,000,000 rupees. It is generally agreed upon that the fiscal deficit equals 5.9% of GDP.

She stated that in her Budget Speech for 2021-22, she stated that the government intends to continue along the path of fiscal consolidation and that this was something that she had mentioned in her speech.

The government has set a goal to reduce the fiscal deficit to less than 4.5% of GDP by 2025–2026, and this reduction should be relatively consistent. She stated that the administration has remained committed to this strategy and reiterated that the fiscal deficit must be less than 4.5 per cent of GDP by the fiscal year 2025-2026.

In order to cover the country’s budget deficit in 2023–24, Smt. Sitharaman predicted that the country’s net market borrowings from dated securities will amount to Rs11.8 lakh crore. The remainder of the funds should come from various sources, including personal savings and other sources. It is estimated that the entire amount borrowed from the market is 15.4 million billion rupees.

Important Links Related to Budget 2023-24

Customs Duty Rate Changes

S. No.  CommodityFrom (per cent)To (per cent)
I.Agricultural Products
1.Pecan Nuts10030
2.Fish meal for manufacture of aquatic feed155
3.Krill meal for manufacture of aquatic feed155
4.Fish lipid oil for manufacture of aquatic feed3015
5.Algal Prime (flour) for manufacture of aquatic feed3015
6.Mineral   and     Vitamin Premixes              for manufacture of aquatic feed155
7Crude glycerin for use in manufacture of Epichlorohydrin7.52.5
8Denatured ethyl alcohol for use in manufacture of industrial chemicals.5Nil
1Acid grade fluorspar (containing by weight more than 97 per cent of calcium fluoride)52.5
III.Gems and Jewellery Sector
1.Seeds for use in manufacturing of rough lab-grown diamonds5Nil
IV.Capital Goods
1.Specified capital goods/machinery for manufacture of lithium-ion cell for use in battery of electrically operated vehicle (EVs)As applicableNil (up to 31.03.2024)
V.IT and Electronics
1.Specified chemicals/items for manufacture of Pre-calcined Ferrite Powder7.5Nil (up to 31.03.2024)
2.Palladium Tetra Amine Sulphate for manufacture of parts of connectors7.5Nil (up to 31.03.2024)
3.Camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone2.5Nil
4.Specified parts for manufacture of open cell of TV panel52.5
VI.Electronic Appliances
1.Heat coil for manufacture of electric kitchen chimneys2015
1.Warm blood horse imported by sports person of outstanding eminence for training purpose30Nil
2.Vehicles, specified automobile parts/components, sub-systems and tyres when imported by notified testing agencies, for the purpose of testing and/ or certification, subject to conditions.As applicableNil

Budget Impact

Here is a quick guide to show you what’s cheaper and what’s dearer now.

Tv Panel PartsCigarettes
Shrimp FeedCompounded Rubber
Camera Lens Of Mobile PhonesKitchen Electric Chimney
Denatured Ethyl AlcoholArticles Made From Gold Bars
Lab Grown Diamond SeedsSilver Dore, Bars And Articles
Acid Grade Fluorspar 
Machinery For the Manufacture Of Lithium-Ion Cells 

The Budget for Department of Space gets Rs 12,544 crore

The amount of Rs 12,544 crore was allocated to the Department of Space (DoS) in the Union Budget for the 2023–24 fiscal year. The Department of Space continues to serve as the central pillar of the nation’s space programme and is in charge of a number of significant initiatives.

The expenditure of Rs. 12,544 crore is more than 8% lower than what was anticipated in the previous budget (2022-23); nevertheless, it is around 19% more than what was modified. In contrast, the actual amount that was distributed in 2021-22 was Rs 12,473.8 crore. The budget for the following financial year is projected to be 12,543.9 billion rupees, and 11,699.4 billion rupees would be allocated to projects that fall under several categories.

Key projects such as sponsored research in academia and industry, sensor payload development, planetary science programme, climate and atmospheric programme, small satellite for atmospheric studies and astronomy, space science promotion, Aditya-L1, Chandrayaan-3, X-Ray Polarimeter (Xposat) mission, and space-docking experiment mission will each receive 138.8 crores out of the total budget of 11,699.4 crores. While programmes overseen by the head of space technology would receive 9,440.6 billion rupees.

This includes the operations of the Indian Space Research Organization’s various centres, such as the Vikram Sarabhai Space Centre (VSSC), the Isro Inertial Systems Unit (IISU), the Liquid Propulsion Systems Centre (LPSC), the Isro Propulsion Complex, the UR Rao Satellite Centre (URSC), the Laboratory for Electro-Optical Systems (Leos), the Satish Dhawan Space Centre, and the Satish Dhawan Space Centre. Other centres include Launch vehicles, satellites, and other technologies that are either in the process of being developed further or are currently in operation and are included in the projects.

In addition, projects involving the application of space technology will receive Rs 1,558.9 crore. This includes the work done by the Space Applications Centre (SAC), the Development and Educational Communication Unit, the Indian Institute of Remote Sensing (IIRS), and the National Remote Sensing Centre (NRSC), as well as the work done by the department’s earth observation application mission, disaster management support programmes, and national natural resource management system.

Aside from this, a total of 531 billion rupees will be allocated for the INSAT (multipurpose satellites) programme, and 138.8 billion rupees will be allocated for initiatives relating to space science.

According to the notes on demand for grants, a total of Rs 450.9 crore will be allocated for the establishment of the headquarters of Isro, the secretariat of the Department of Space, and the Indian National Space Promotion and Authorisation Centre (IN-SPACe), which was recently established.

IN-SPACe will receive R95 crore in funding. The Indian Institute of Space Science and Technology (IIST), the Semi-Conductor Laboratory (SCL), the North Eastern Space Applications Centre (NE-SAC), the National Atmospheric Research Laboratory (NARL), and the Physical Research Laboratory would each receive an additional Rs 408.7 crore (PRL). The NewSpace India Limited (NSIL), which is a government-owned space agency, is given one crore rupees for use in capital expenditures.

FAQ related to Budget 2023-24

Which is better new or the old tax regime?

The answer to the question “new income tax regime versus old income tax regime” is not a black-and-white comparison because it depends on how much money you make.
If you have an annual income of up to 15 lakh rupees, it is in your best interest to switch to the new income tax system so that you can reduce the amount of money paid in taxes. However, if you have a larger salary and the ability to save money and invest it, it might make more sense to stick with the previous tax regime.

Is bank interest taxable in the new tax regime?

Indeed, because the deduction provided by Section 80TTA is no longer an option, the interest earned on your savings account will now be subject to taxation.

How much income is tax-free?

According to the new guidelines for income tax, salaries of up to 7 lakh rupees won’t be subject to taxation. You were exempt from paying taxes on salary income up to Rs 5 lakh if you were filing under the previous income tax system.

What are the benefits of the new tax regime?

As a result of the new income tax system, salaried taxpayers are able to take advantage of lower income tax rates and, as a consequence, pay less in income taxes.
A standard deduction is part of the new income tax system that will go into effect for the fiscal year 2023-2024. However, there are no exemptions such as Section 80C, 80D, or 80TTA, nor are there any housing loan benefits.

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