Budget 2023 at a glance; key takeaways from the shortest budget speech

On 1 February, the Finance Minister of India announced the shortest and the fifth successive budget stating the the economy have grown by 7 percent. She mentioned that the government will now be undertaking seven ideals to guide the country through the Amrit Kaal. Important announcements were being made in the Budget for the taxpayers, also offering a relief in the income tax slabs.

“The budget adopts following seven priorities — inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector,” the Finance Minister said.

Here are the key takeways from the Budget Speech:

1. The FM proposed to ramp up the income tax rebate limit from Rs 5 lakh to Rs 7 lakh in accordance with the new tax regime.
2. The fresh tax rates are 0 to Rs 3 lakhs – nil, Rs 3 to 6 lakhs – 5%, Rs 6 to 9 Lakhs – 10%, Rs 9 to 12 Lakhs – 15%, Rs 12 to 15 Lakhs – 20% and above 15 Lakhs – 30%.
3. While an individual with a yearly income of Rs 9 lakh will have to pay 10%, Rs 9 to 12 Lakhs – 15%, Rs 12 to 15 Lakhs – 20% and above 15 Lakhs – 30% as per the new tax regime.
4. Person with an annual income of Rs 9 lakh will be paying Rs 45,000 as tax rather than the earlier fixed slab of Rs 60,000. 
5. Outlay for capital expenditure has been increased to 33% that is Rs 10 lakh crore in FY24.
6. The capex allocation, as per the data is higher than the Rs 7.5 lakh crore budget meant for in last fiscal.
7. Budget allocations has been ramped up to Rs 79,000 crore specially designated for reasonable housing under the PM Awaas Yojana.
8. Rs 35,000 crore will be offered for energy transition.
9. The FM offered a cut on the customs levied on lab-grown diamonds
10. Incentives will be used to substitute old, polluting vehicles acquired by the central and state governments.
11. Renovated scheme for credit guarantee designated for the small and medium businesses from April 1.
12. Collateral free credit of Rs 2 lakh crore under the scheme will be conferred.
13. An increase in public capex key leading to traffic in private investments.
14. Integrated IT portal to be established for reclaiming unclaimed shares and dividends.
15. The FM proposed to cap deductions from capital gains on investments over residential houses priced up to Rs 10 cr.
16. Higher surcharge rate dwindled from 37% to 25% in new tax regime.
17. Taxes on cigarettes increased by 16%.
18. Basic customs duty increased on goods made from gold bars.