Budget 2023: 5 Big announcements for the middle-class

Finance Minister Nirmala Sitharaman presented the Union Budget for 2023-24 in the Lok Sabha. In the new income tax regime, the government has made substantial changes in its structure for the benefit of the middle class. Here we list a few major announcements made while presenting the Budget 2023-24 that are expected to provide benefits to the middle class.

The first big relief given by Finance Minister Nirmala Sitharaman came with the increase of the income tax rebate limit to Rs 7 lakh in the new tax regime. In the new tax regime, one does not have to pay tax for income up to Rs 7 lakh. However, the tax rebates which people got from Sections 80C, 80D of the income tax act, etc., (tax rebates for saving, paying house rent, medical insurance) have all been taken away in the new tax regime. Credit: Getty Images

Under the new tax regime, the benefit of standard deduction has been extended to the salaried class and the pensioners, including family pensioners which will benefit each salaried person. Credit: Getty Images

Finance Minister Nirmala Sitharaman announced new tax slabs. Tax for income of Rs 0-3 lakh is nil; income above Rs 3 lakh and up to Rs 5 lakh to be taxed at 5 per cent income of above Rs 6 lakh and up to Rs 9 lakh to be taxed at 10 per cent; income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20 per cent; and income above Rs 15 lakh to be taxed at Rs 30 per cent. Credit: PTI Photo

Another major announcement in personal income tax was the reduction in highest surcharge rate from 37 per cent to 25 per cent. Credit: Pushkar V/DH Photo

The Union Budget 2023 proposed extension of limit of tax exemption on leave encashment to Rs 25 lakh on retirement of non-government salaried employees in line with the government salaried class. Credit: Getty Images