Union Budget: From Income Tax Slab 2023-24, Senior Citizen Savings Scheme, Mahila Samman Savings Certificate, to Tax Sops, 5 Key Highlights

Finance Minister Nirmala Sitharaman today proposed to double the deposit limit for Senior Citizen Savings Scheme to Rs 30 lakh and Monthly Income Account Scheme to Rs 9 lakh. In her Budget Speech, the minister also announced a new small savings scheme for women. "The maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from Rs 15 lakh to Rs 30 lakh," the minister said in her 87-minute long speech. She also proposed that the maximum deposit limit for Monthly Income Account Scheme will be enhanced from Rs 4.5 lakh to Rs 9 lakh for a single account and from Rs 9 lakh to Rs 15 lakh for a joint account. (Pixabay Image)

The government is starting a limited period fixed return investment scheme for womeb. For commemorating Azadi Ka Amrit Mahotsav, a one-time new small savings scheme, Mahila Samman Savings Certificate, will be made available for a two-year period up to March 2025, Finance Minister Nirmala Sitharaman said while announcing the Union Budget 2023-24 today. This will offer a deposit facility upto Rs 2 lakhs in the name of women or girls for a tenor of two years at fixed interest rate of 7.5 per cent with partial withdrawal option.  (Pixabay Image)

Finance Minister Nirmala Sitharaman also announced tax rebate under the new income tax regime. She announced that no tax would be levied on annual income of up to Rs 7 lakh under the new tax regime. She also allowed a Rs 50,000 standard deduction to taxpayers under the new regime, where assessees cannot claim deductions or exemptions on their investments. FM Sitharaman also tweaked the concessional tax regime by hiking the tax exemption limit by Rs 50,000 to Rs 3 lakh and reducing the number of slabs to five. In the Budget for 2023-24, Sitharaman said currently individuals with total income of up to Rs 5 lakh do not pay any tax due to rebate under both the old and new regimes. "It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to Rs 7 lakh," Sitharaman said.   (Pixabay Image)

Finance Minister Nirmala Sitharaman said under the new personal income tax regime, the number of slabs would be reduced to five. Under the revamped concessional tax regime, no tax would be levied for income up to Rs 3 lakh. Income between Rs 3-6 lakh would be taxed at 5 per cent; Rs 6-9 lakh at 10 per cent, Rs 9-12 lakh at 15 per cent, Rs 12-15 lakh at 20 per cent and income of Rs 15 lakh and above will be taxed at 30 per cent. "I propose to extend the benefit of standard deduction to the new tax regime. Each salaried person with an income of Rs 15.5 lakh or more will thus stand to benefit by Rs 52,500," Sitharaman said. Currently, a 5 per cent tax is levied on total income between Rs 2.5 lakh and Rs 5 lakh, 10 per cent on Rs 5 lakh to Rs 7.5 lakh, 15 per cent on Rs 7.5 lakh to Rs 10 lakh, 20 per cent on Rs 10 lakh to Rs 12.5 lakh, 25 per cent on Rs 12.5 lakh to Rs 15 lakh, and 30 per cent on above Rs 15 lakh.  (Pixabay Image)

The government today proposed to extend income tax benefits to startups incorporated till March 2024. Finance Minister Nirmala Sitharaman also said that the government proposes to increase the benefit of carrying forward losses for startups to 10 years. "I propose to extend the date of incorporation for income tax benefits to startups from March 31, 2023, to March 31, 2024. I further propose to provide the benefit of carry forward of losses on change of shareholding of startups from seven years of incorporation to ten years," she announced.   (Pixabay Image)