Power of tech and tax rebates in budget 2023: What you need to know from FM Sitharaman

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Power of tech and tax rebates in budget 2023: What you need to know from FM Sitharaman (Image: Twitter/@FinMinIndia)
Power of tech and tax rebates in budget 2023: What you need to know from FM Sitharaman (Image: Twitter/@FinMinIndia)

Delhi : Honorable Finance Minister Nirmala Sitharaman delivered the Union Budget in front of the Lok Sabha today, February 1. According to Amrit Kaal's first budget, India hopes to become a developed country by 2047.

Therefore, infrastructure and investment, green growth, young power, and the financial sector were the main focal areas. The Budget placed a great emphasis on significant adjustments to tax brackets, capital spending, and capital outlay for railways in addition to allocating monies for securing a brighter future.

Look at the main points of the budget for 2023–24:

Income up to Rs. 7 lakh is exempt from tax

The middle and salaried classes received significant respite from the most recent budget since, under the new tax system, anyone with an annual income of up to Rs 7 lakh will not be required to pay tax. However, people who choose the new tax system are unable to make investment-related deductions or exemptions.

The Finance Minister further permitted taxpayers under the new system a basic deduction of Rs. 50,000, which would now be the de facto tax policy. The person will, however, also have the choice to utilise the advantages of the previous tax system.

Updated tax slab

  • 0–3 lakh–zero
  • 3-6 lakh - 5%
  • 6-9 lakh 10%
  • 9-12 lakh 15%
  • 12-15 lakh 20%
  • 30% over 15 lakhs

Clean energy and sustainable growth

India is concentrating more than ever on achieving the target of net zero carbon emissions. The FM listed plans for green fuel and green farming in addition to allocating Rs 35,000 crore towards the country's transition to cleaner energy in order to achieve the same by 2070.

The recently established National Green Hydrogen Mission, which aims to lessen the nation's reliance on imported fossil fuels, has also received funding. In addition to the current programmes, a Green Credit Program would be introduced to reward businesses, people, and local authorities for taking ecologically responsible acts.

Healthcare costs and pharmaceutical research

The pharmaceutical industry's R&D efforts and the encouragement of medical research by the public and commercial sectors were given more attention in Amrit Kaal's first budget. The health sector has received a total allocation of Rs 88,956 crore, an increase of Rs 2,350 crore over the previous budget.

The initiative to eradicate sickle cell anaemia was another important health-related statement. Seven crore individuals will be universally screened, especially in tribal regions where the illness is more prevalent. At addition, facilities in a few laboratories run by the Indian Council of Medical Research (ICMR) would be made accessible for research to promote teamwork.

AI creation in India

India is preparing to create a robust artificial intelligence ecosystem as the world enters the AI age. The significant statement in this area was the intention to establish three Centers of Excellence for Artificial Intelligence in premier academic institutions, which will work in tandem with top businesses. Research and development of useful AI applications for use in agriculture, health care, and sustainable cities will be the focus.

100 labs for 5G service-based app development

In addition to AI, 5G services were emphasised, which may open up countless prospects not only for the telecom industry but also for other industries. As a result, the FM declared that the government intended to establish 100 laboratories for the creation of apps utilising 5G services in fields including smart classrooms, healthcare, and smart cities. According to media sources, 5G services have already been launched in 225 places throughout India. By December 2023, the entire country is supposed to be covered.