The Union Budget 2023-24, presented on February 1, 2023, by Finance Minister Nirmala Sitharaman, brought many changes for the middle class. Here's a look at the important announcements in the Union Budget 2023-24 which aimed at benefitting the middle class:
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- Tax changes: The rebate limit for personal income tax under the new tax regime was increased from ₹5 lakh to ₹7 lakh owing to which individuals earning up to ₹7 lakh per year will not have to pay any income tax.
- Tax slabs: The number of tax slabs in the new tax regime was reduced from six to five and the tax rates were slashed significantly. Those with a yearly income of ₹0–3 lakh did not have to pay tax, from ₹3-5 lakh, the tax rate was five per cent, from ₹6–9 lakh, the tax rate was 10 per cent, from ₹12–15 lakh, the tax rate was 20 per cent.
- Standard reduction: The standard deduction for salaried professionals and pensioners was increased from ₹50,000 to ₹52,500.
- Investment limit for deduction under Section 80C: The limit for investment in tax-saving instruments under section 80C of the Income Tax Act was increased from Rs. 1.5 lakh to Rs. 2.5 lakh.
- Education: The budget allocated more funds for education, including scholarships and funding for educational institutions.
- Housing: The budget announced several measures to boost affordable housing, including increased tax benefits for developers and homebuyers.
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Catch every big news on Budget 2026, Nirmala Sitharaman announcements, income tax changes and much more on a one stop destination.
Catch every big news on Budget 2026, Nirmala Sitharaman announcements, income tax changes and much more on a one stop destination.
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