Union Budget 2023: 6 Major Money-Related Reforms Announced by FM That Can Affect Your Finances
6 Financial Reforms announced in Union Budget 2023 That Can Affect Your Finances
Finance Minister Nirmala Sitharaman presented Union Budget 2023-24 today (Feb 1, 2023). As the Budget is the annual financial statement for the next fiscal year, of course, it comprises too many provisions. Here we are compiling the top 6 money-related norms that can affect your finances announced today.
Income Tax Slab
Nirmala Sitharaman, the finance minister, declared on Wednesday that the new tax system is now the default one. Sitharaman informed Parliament during the presentation of the budget statement for the fiscal year 2023–24 that the government will take a number of steps to improve the voluntary tax regime while forgoing income.
Income Tax Rebate
Nirmala Sitharaman has announced a significant modification to the current income tax system for salaried workers. For those choosing the new tax system, she has suggested raising the income tax rebate from Rs 5 lakh to Rs 7 lakh.
According to Union Finance Minister Nirmala Sitharaman, the new tax rates are as follows: "The new tax rates are Rs 0 to Rs 3 lakhs - nil, Rs 3 to 6 lakhs - 5 percent, Rs 6 to 9 lakhs - 10 percent, Rs 9 to 12 lakhs - 15 percent, Rs 12 to 15 lakhs - 20 percent, and above 15 lakhs - 30 percent."
Standard Deduction Limit Increased
For the salaried class and retirees, a standard deduction of Rs. 45,000 has now been included in the new tax code. An individual making Rs 9 lakh per year will now pay Rs 45,000 in tax, or 5 percent of their earnings, down from the previous Rs 60,000.
Maximum Deposit for Senior Citizens Saving Scheme
Today, Nirmala Sitharaman, the finance minister, raised the cap on the Post Office Monthly Income Scheme's small savings programme (POMIS). The new limits would be Rs 15 lakh instead of Rs 9 lakh for joint account holders and Rs 9 lakh instead of Rs 9 lakh for solo accounts.
Post Office Monthly Income Scheme's Limit
Today, Nirmala, the finance minister, raised the cap on the Post Office Monthly Income Scheme's small savings programme (POMIS). The new limits would be Rs 15 lakh instead of Rs 9 lakh for joint account holders and Rs 9 lakh instead of Rs 9 lakh for solo accounts.
MSMEs and Professionals
MSMEs, according to FM, are our economy's growth drivers. Presumptive taxation is available to micro businesses with revenues up to Rs 2 crore and some professionals with revenues up to Rs 50 lakh. I suggest giving taxpayers with cash receipts of a little more than 5 percent increased limits of Rs 3 crore and Rs 75 lakh, respectively.