Budget 2023 Live Updates: FM Announces Major Changes in Income Tax Slabs Under New Tax Regime

“The Union Budget 2023 has emphasized the need to accelerate economic growth, create new job opportunities, and build resilient infrastructure. Even though there was little for the real estate sector, especially our demand to increase the tax incentives on Principle and Interest rate Amounts on Home loans. However, the Government’s aim to boost and accelerate infrastructure development will eventually reflect in the growth and stability of the real estate sector”, said Mr. Boman Irani, President, CREDAI-MCHI.

Swaraj India leader Yogendra Yadav on said the Union budget has nothing for 99 per cent of the citizens of the country, while alleging that the government is only concerned about a few rich people. He also accused the government of not paying any heed to farmers' concerns in the budget.

Expectations were built into the market and hence markets are not going to respond in a hurry. This is like a Bahubali budget – with one arrow, the finance minister has shot multiple targets.

The 157 new nursing colleges as part of medical colleges is a welcome move but not a needle mover. At the same time, the budget was highly anticipated and not too optimistic.

Capital Outlay of Rs 2.40 Lakh Cr to be provided for railways is the highest-ever outlay & 9x of 2013-2014, this reinforces GOVT's take on economic growth driven by the infrastructure in addition to PMAY outlay enhanced by 66% to over Rs 79K cr a much needed ‘positive push’ for housing.

Higher disposable income across all categories of taxpayers including the richer people should help auto sales because the propensity for spending would go up and as you know, auto buying is discretionary buying, requiring disposable incomes to go up.

Budget 2023 has included a series of measures for inclusive socio–economic development. The Indian government with its 7 priorities and a greater focus on Financial Sector and infrastructure & Investment have stepped in the right direction.

The budget remains focused on long-term economic growth through capex and sops to boost consumption for the middle-income group. This would support strong corporate earnings with positive bias for sectors like infra, housing, cement, cap goods, auto and tourism. Despite upcoming state elections, the government did not deliver a populist budget and tried to maintain fiscal prudence.

Union Budget 2023-24 is aimed at bringing inclusive economic growth to the country with fiscal consolidation at its core. Additionally, the greater push for AI, Robotics, IT Labs and Green ecosystems will be sector agnostic and benefit capital inflow along with the 10,000 crores for Urban Infra Development Fund.

“The Union Budget for 2023-24 comes across as extremely balanced and progressive. What strikes out most is that there is primacy accorded to growth, which is exactly what we wanted to see. There is clearly a focus on the agriculture sector with significant outlays, and a focus on urbanisation and digitalisation".

N.S.N. Murthy, Partner, Deloitte India said that investments for the development of digital public infrastructure and goods will help startups build assets and products.

Tax rate - Reducing the max marginal rate of tax is very welcome. 42% was indeed steep. Govt has done right by reducing to 39 per cent. Ease of doing business - The fact that we have had to reduce 39000 compliances just shows how many compliances we have had to live with and why we have still a long way to go on Ease of Doing Business. MSMEs - Apparently, payments to MSMEs will be allowed only on a payment basis. Hence one will need to track all dealings with MSME and track payments. Arbitration - Settlement Scheme for Arbitration matters. Very interesting. Hopefully should provide a way for those litigating with the Govt an easier option to realise cash early.

Nitin Gadkari says driving the nation to AatmaNirbharta, this budget will equip India with new-age infrastructure, decline imports and strengthen our energy sector with a futuristic approach.

The Nifty is set to end the day lower, thanks to massive selling in Adani Ports.

“Budget 2023 is a great step towards supporting the long-term growth potential of India's fintech ecosystem amidst increasing global headwinds. The new National Financial Information Registry, simplified KYC processes and adoption of PAN as the common business identifier will help streamline business operations for fintechs across India. The government’s strong focus on cutting-edge tech like AI & 5G will offer a much-needed growth impetus to our country’s digital infra at a grassroots level. We at PayU India welcome the policies laid out in Budget 2023 and are excited to contribute driving financial inclusion through our digital payments & credit businesses,” Anirban Mukherjee, CEO – PayU India.

“I believe it is a highly pragmatic and growth-oriented budget which will help India remain amongst fastest growing economies globally. FY23-24 budget is walking the talk and continues Govt focus on 1) bottom end of pyramid with free food grains 2) taxation relief to middle class 3) enhancing Agri credit 4) heightened capex spend with Rs13.7 trillion capex and 5). focus on green energy, energy transition etc. I believe that the budget is targeting inclusive growth with focus on increasing consumption through benefits to middle class and impetus to industry to spur investment for domestic manufacturing and infrastructure development.” Amisha Vora - Chairperson and MD, Prabhudas Lilladher Group.

“The extension of the tax benefit deadline till 31st March 2024 is a positive for the start-up ecosystem. The amendment to set off losses for 10 years is another positive as it is difficult for disruptive and tech start-ups to be profitable at the get-go especially if they are catering to India's billion internet users. India's growth will be a beacon for the world in a challenging 2023 global economy. The 2008 recession gave birth to many US-based start-ups that went to be household names. We hope that these measures will build many early-stage start-ups and help cement India's place as a hub for innovation” - Mr Anuj Parekh CEO and Co-Founder Healthysure.

The Nifty plunges a solid 230 points, while the Sensex lost 445 points. Adani Group stocks were hitting the lower end of the circuit filter.

“The simplification of KYC procedures by making PAN a common identifier for all digital systems will support the vision of digital India. The PAN-based KYC will enable fintech businesses to make customer onboarding highly convenient and at the same, simplify the KYC reporting to the relevant government authorities,” says Tarusha Mittal COO and Co-founder, Dapps and UniFarm

The Budget lays much emphasis on building the infrastructure of the country, with emphasis on last-mile connectivity. Improved urban infrastructure will provide further impetus to Tier 2 & 3 cities. The unwavering focus on infrastructure will indirectly drive real estate growth over the next one year. The tourism sector also has something to cheer for as the budget aims to boost domestic and international tourism, Anuj Puri, Chairman – ANAROCK Group

Markets have given-up some gains with the Nifty up only 20 points in trade.

“The Union Budget has many announcements for the real estate and the infra sector. The robust infra, railway outlay, and 50 new airports by the government will help create new realty hotspots across the country. The 66% rise in the PMAY outlay will help achieve the government's dream of 'Housing for All'. The key announcement of the government incentivizing cities to improve their creditworthiness for municipal bonds will encourage states and cities to take up urban and sustainable planning. Lastly, the new direct tax slabs will end up leaving more money in the hand of the consumer, thereby leading to a rise in discretionary income.”

Mr Colin Shah, MD, Kama Jewelry on the Union Budget says that It was a mixed budget for the Gems and Jewelry industry as the FM did acknowledge the potential of the Lab Grown Diamonds for exports, and to create employment. An R&D grant for five years will help in creating local manufacturing capacities, thereby reducing our dependency on imports of machinery in the years to come. The move to not impose any capital gains on the conversion of physical gold to electronic gold receipts and vice versa will help further gold monetization. This announcement may help in reducing the import of gold. The hike in basic customs duty on articles made from gold bars and import duty on silver will lead to a rise in the final price of locally made jewellery and maybe a challenge to the local refineries. There was no announcement for the natural diamond industry in terms of duties and our SNZs. Not having a repair policy will also be damaging for our DTA Jewellery exporters.”

Union Defence Minister Rajnath Singh said, "The increase in Income Tax exemption limit to Rs 7 lakhs and several other tax-related reforms will provide a huge relief to the middle class including salaried individuals and retired people. I congratulate the FM and thank Pradhanmantri ji for taking this people-friendly decision."

The stocks of real estate companies jumped today after FM announced hikes in PM Awas Yojana (PMAY) Outlay by 66 per cent to Rs 79,000 crores in the next fiscal year.

Sensex surged over 1,000 points and trades at 60,268.30 points at 13:27 pm. Nifty at 17,853.55 points.

Rupee gains 8 paise and trades at Rs 81.80 paise against the U.S. dollar

Manish Lunia, Co-Founder of Flexiloans.com says that Budget 2023 is a balanced budget that continues to focus on Digitization, Capex spending, Trust based governance and Optimizing the tax structure for the citizens of the country while maintaining good quality fiscal prudence. Overall- a pragmatic and fairly inclusive budget for the MSME/ Fintech sector: Simplicity and standardization of KYCs/ common business identifiers via Digilocker - will reduce compliance costs and enhance speed for all stakeholders.

An individual with an annual income of Rs 9 lakh will have to pay only Rs 45,000: FM

Individuals with income of Rs 15.5 lakh and above are eligible for a standard deduction of Rs 52,500 in the new tax regime. Currently, the Standard Deduction is Rs 50,000 under the old regime and the maximum deduction for professional tax (PT) is Rs 2,500.

FM concludes budget speech

I introduced in 2020, the new personal income tax regime with 6 income slabs, starting from Rs 2.5 Lakhs. I propose to change the tax structure in this regime by reducing the number of slabs to 5 and increasing the tax exemption limit to Rs 3 Lakhs: FM Nirmala Sitharaman

Income tax rebate hiked from Rs 5 lakhs to Rs 7 lakhs under the new regime

I propose to reduce the number of basic custom duty rates on goods other than textiles and agriculture, from 21 to 13. As a result, there are minor changes in the basic custom duties, cesses & surcharges on some items including toys, bicycles, automobiles: FM Nirmala Sitharaman

The custom duty on cigarettes has increased.

The amount that can be invested under the MIS scheme has now been raised to Rs 9 lakh from 4.5 lahks.

The Fiscal deficit for 2023-24 pegged at 5.9% of GDP.

Senior Citizens can now invest as much as Rs 30 lakhs under the Senior Citizens Savings Scheme as against Rs 15 lakhs earlier.

Investor protection in Banking - Amendments to Banking Regulation Act, RBI Act. SEBI to develop, and regulate education in NISM and award degree diplomas and certificates.

The Finance Minister has allocated Rs 19,700 crore to the National Hydrogen Mission. The objective is to reach hydrogen production capacity of 5 metric million tonnes by 2030.

Digilocker- One stop KYC maintenance system For business establishments required to have Permanent Account Number, the PAN will be used as a common identifier for all Digital Systems of specified government agencies: FM Nirmala Sitharaman

In the next three years the center will recruit 38,800 teachers and support staff for the 740 Eklavya Model Residential Schools serving 3.5 Lakh tribal students: Finance Minister

We are implementing programs like green fuel, green energy etc. for efficient use of energy across economic sectors. These green growth efforts help in reducing carbon intensity of economy & provide large scale job opportunities: Finance Minister

Rs 35,000 crores priority capital for the energy transition; Battery storage to get viability gap funding: FM Nirmala Sitharaman

National Child Trust, Children's Book Trust and other sources are to be encouraged to provide and replenish non-curricular titles in regional languages and English, to these libraries; collaboration with NGOs working in literacy also to be done: FM

To realising the vision of Make AI in India and Make AI work for India, 3 Centres of Excellence for Artificial Intelligence will be set up in top educational institutions: Union Finance Minister Nirmala Sitharaman

Capital outlay of Rs 2.40 lakh crores for Railways in next financial year: FM Nirmala Sitharaman

Facilities in select ICMR labs to be made available for research by public and private medical college faculty, private sector research teams for encouraging collaborative research and innovation: FM

All cities and towns will be enabled for 100% mechanical de-sludging of septics tanks & sewers to transition from manhole to machine hole mode: FM Nirmala Sitharaman

50-year interest-free loan to State governments extended for one more year: FM Sitharaman

New Sub Scheme of PM Matsya Sampada Yojana, with a targeted investment of Rs. 6000 crores, to further enable activities of fishermen, fish vendors and micro and small entrepreneurs, improve value chain efficiencies and expand the market: FM

The outlay for PM Awaas Yojana being enhanced by 66% to over Rs 79,000 crores: FM Nirmala Sitharaman

The capital investment outlay is being increased steeply for the 3rd year in a row by 33% to Rs 10 lakh crores which would be 3.3% of GDP - this will be almost 3 times the outlay made in 2019-20: FM

To improve social-economic condition of the Particularly Tribal Groups, PMPBTG Development mission will be launched, to saturate PBTG habitations with basic facilities. Rs 15,000 cr to be made available to implement scheme in next 3 years: FM Nirmala Sitharaman

157 new nursing colleges will be established in coordination with the existing 157 medical colleges established since 2014: FM Nirmala Sitharaman

Digital Public Infrastructure for Agriculture to be built as open source, open standard, interoperable public good. Will enable inclusive farmer-centric solutions & help improved access to farm inputs, market intel, support for agri industry, startups: FM

Promotion of tourism will be taken up in mission mode, with the active participation of states and PPPs: FM

PM Vishwa Karma Kaushal Samman - package of assistance for traditional artisans and craftspeople has been conceptualized, will enable them to improve quality, scale and reach of their products, integrating with MSME value chain: FM

1. Inclusive development 2. Reaching the last mile 3. Infrastructure & Investment 4. Unleashing potential 5. Green growth 6. Youth power 7. Financial Sector

An Agriculture Accelerator Fund will be set up to encourage agri-startups by young entrepreneurs: Finance Minister Nirmala Sitharaman

"Economic Agenda for our vision focuses on 1) facilitating opportunities for citizens, 2) providing strong impetus to growth and job creation and 3) strengthening macroeconomic stability":FM

G20 Presidency gives us a unique opportunity to strengthen our role in the world economic order, we are steering an ambitious people-centric agenda to address global challenges and facilitate sustainable economic development: FM

Indian economy has increased in size from being tenth to 5th largest in the world in the last 9 years, we have made significant progress in many SDGs, economy has become lot more formalized, efficient implementation of schemes has brought about inclusive development: FM

Entire expenditure of about Rs. 2 lakh crore under PM Garib Kalyan Anna Yojana is being borne by the central government, for supplying free food grains for one year to all Antyodaya and priroity households: Finance Minister

The Indian economy is on the right track, heading to a bright future. Our focus on reforms and sound policies resulting in Jan Bhagidari helped us in trying times, our rising global profile is due to several accomplishments: FM

"The world has recognized India as a bright star, our growth for current year is estimated at 7.0%, this is the highest among all major economies, in spite of massive global slowdown caused by pandemic and the war: Finance Minister

"This is the first budget in Amrit Kaal, this budget hopes to build on the foundation laid in the previous budget and the blueprint laid for India@100, we envision a prosperous and inclusive India in which the fruits of development reach all" : FM

Indian economy on the right track, and heading towards a bright future: Finance Minister Nirmala Sitharaman

This is the first budget of Amrit Kaal, says Finance Minister.

It's a few minutes away from the FM presenting the Union Budget 2023-24. So, all speculations would be ended and we would get back to actuals.

The Sensex and the Nifty have hit the day's highs with the Sensex crossing the 60,000 points mark. The Sensex is up 556 points, while the Nifty is up 152 points in trade.

It is highly possible that we may see some tax sops in the new tax regime. One of the reasons for the same is that the government wants to encourage individuals to move to the new tax regime. There are no tax sops in that sense, but, the only thing that could happen is a change in the brackets or change in the effective tax rates.

It is highly unlikely there would be income tax sops under the old tax regime. Sec80C hopes maybe belied.

The Budget is expected to give an outline on the nominal GDP growth numbers. There has been absolutely no problem with GDP numbers this year, but, going forward rising interest rates and global challenges may come to the fore.

The government's tax revenues are expected to overshoot the budget estimates by about Rs 4 lakh crore on buoyant income tax and customs duty.

The government's planned capital expenditure for this fiscal year is budgeted at Rs 7.5 lakh crore, higher than Rs 5.5 lakh crore in the last fiscal.

Copies of the Union Budget 2023-24 have arrived in parliament.

India continues to remain a bright spot and the budget comes in the backdrop of India being one of the fastest growing economies in the world.

Benchmark indices surged in trade on hopes of an optimistic budget.

The fiscal deficit number could be around the 6.3 to 6.4% of GDP levels. There is unlikely to be major surprises on account of the robust GST collections.

Union Cabinet meeting underway ahead of the budget presentation.

Finance Minister Nirmala Sitharaman is the sixth minister in independent India to present five consecutive budget.

Union Minister of Finance and Corporate Affairs Smt Nirmala Sitharaman, MoS Dr Bhagwat Kishanrao Karad, MoS Shri Pankaj Chaudhary and senior officials of the Ministry of Finance called on President Droupadi Murmu at Rashtrapati Bhavan before presenting the Union Budget 2023-24.

Budget would have to balance the spending, as the same is likely to increase, though tax collections under GST has been buoyant.

Markets have opened strong ahead of the Union Budget. The Sensex has opened higher by 446 points, while the Nifty has opened 126 points higher in trade.

The Indian rupee has opened 14 paise higher at 81.78 per dollar ahead of the Union Budget recommendations. The currency closed at 81.92 to the dollar on Wednesday.

There are hopes of changes in the income tax slabs under the new tax regime. This is largely to encourage the shift to the new tax regime. Let's wait and watch.

The fiscal deficit number would be a closely watched number ahead of the budget.

Indices are set to open marginally higher ahead of the Union Budget recommendations.

Chief Economic Advisor V Anantha Nageswaran said on Tuesday, "India's economy is poised to do better in the remainder of this decade."

The Economic Survey 2022-23 has stated that one of the risk to the outlook originates from the ongoing monetary tightening exercise.

Markets are expected to be volatile ahead of the Union Budget. SGX Nifty suggests higher openings for the Indian markets.

Benefits of the production linked incentive (PLI) scheme for as many as 14 sectors will help make domestic manufacturers globally competitive, attract investment in cutting-edge technology and make India an integral part of the global value chain, the Economic Survey said.

Experts from various sectors have hailed the Economic Survey 2022-23, saying the report has highlighted India's growth path amid several headwinds and suggested measures to tackle global challenges going forward.

The Economic Survey 2022-23 released on Tuesday has called for simpler tax rules and processes to help Indian-owned start-ups in "reverse flipping" or shifting their base back to India.

Goods and Services Tax collection is showing a higher buoyancy than the pre-GST system, auguring well for future resource mobilisation in the economy, the Economic Survey 2022-23 presented in Parliament said on Tuesday.

India’s external sector has been buffeted by shocks and uncertainty manifested in terms of elevated, though now easing global commodity prices; tightening international financial conditions; heightening financial market volatility; reversal of capital flows; currency depreciation, and looming global growth and trade slowdown, the Economic Survey 2022-23 has said.

Economic Survey 2022-23: Inflation Brought Within Central Bank’s Tolerance Limit

The Indian rupee may remain under depreciation pressure on account of plateauing of exports and subsequent widening of the current account deficit, said the Economic Survey 2022-23 tabled in Parliament on Tuesday.

Gross domestic product is expected to grow 6.5% in the current fiscal year.

India's annual pre-budget economic survey pegs GDP growth at 6-6.8% for 2023-24.

Sensex and the Nifty are trading absolutely flat ahead of the economic survey to be tabled. Adani Group stocks are trading mixed with Adani power and Adani Wilmar still locked at the lower end of the filter.

Press Conference by Chief Economic Advisor V Anantha Nageswaran on Economic Survey 2022-23 at 2 pm.

President Murmu concludes her speech. The Economic survey would shortly be tabled in parliament. Watch for important indicators like GDP projections.

Sensex is trading lower by 37 points, even as Adani group stocks have recovered.

As a result of new initiatives by my government, our defence exports have increased six times: President Murmu

Today our youth are showing the power of their innovation to the world: President Droupadi Murmu to the joint sitting of Parliament

I'm delighted that my Govt has decided to extend PM Garib Kalyan Anna Yojana in accordance with the new circumstances: President Droupadi Murmu to Parliament

Priority of my government is 11 crore small farmers who were for decades deprived of benefits of govt: President Murmu

Garibi hatao' is not just a slogan anymore. My government is working to have a permanent solution to the problems of the poor: President Murmu

Along with transparency, dignity of taxpayers is also being ensured through GST: President Murmu

Earlier, there was a long wait for tax refund. Today, refund is received within a few days of filing Income Tax Return: President Murmu

About 11 crore families have been connected with piped water supply in three years under the Jal Jeevan Mission. Poor families are getting the maximum benefit from this: President Murmu

There should be an India that will not have poverty, whose middle class will also be prosperous, an India whose youth and women will stand at the front to show a path to society & the country, an India whose youth stays two steps ahead of time: President Droupadi Murmu

By 2047, we have to build a nation that will be connected to the pride of the past and which will have all the golden chapters of modernity. We have to build an India that will be 'aatmanirbhar' and capable to fulfill its humanitarian duties: President Murmu

President Droupadi Murmu begins the session of Parliament with her speech.

The Economic Survey gives a detailed account of the inflation rate, trends in key segments like infrastructure, agriculture, and foreign exchange reserves, among others. It also mentions the possible economic challenges that India might face in future and suggests measures to overcome them.

Post the Economic Survey one would also have to look at what the Chief Economic Advisor has to say at the 2 pm conference.

The key themes that the Economic Survey could cover include inflation, employment, rupee, current account deficit and of course growth and GDP.

The Nifty is down 87 points at 17562 points ahead of the survey.

The president will address parliament ahead of the Budget session and presentation of the Economic Survey.

A Reuters report has said that India's annual pre-budget economic survey is likely to peg GDP growth at 6-6.8% for 2023-24, according to a source.

Ahead of the economic survey the IMF has cut the GDP projections for the current fiscal ending March to 6.1% from 6.8% earlier.

After opening with gains, the Sensex and the Nifty have now dropped into the red.

The Chief Economic Advisor Anantha Nageswaran will address a Press Conference at 2:00 PM in New Delhi after the presentation of Economic Survey.

Investors would await the GDP numbers and other estimates. India's GDP (gross domestic product) may grow 7% for financial year 2022-23, the first advance estimates release had stated.

Markets open marginally higher ahead of the Economic Survey. Nifty currently trading 9 points higher.

Commentary on inflation would also be eagerly watched, given that it has been elevated for some more time.

Markets are expected to open marginally higher ahead of the economic survey.

"Despite all the disruptions caused by the global pandemic, India’s balance of payments remained in surplus throughout the last two years," last year's economic survey stated.

The last two years economic survey have been announced under the adverse impact of the world economy on account of the COVID-19 pandemic.

India’s first Economic Survey was presented in 1950-51. It was later presented along with the Union Budget till 1964.

Last year’s the economic survey had predicted India’s economy to grow at 8-8.5 per cent in the fiscal beginning April 1, 2022.

The economic survey would highlight key data including inflation, gdp, trade deficit etc.