Finance Minister Nirmala Sitharaman Presented Union Budget 2023-24

Finance Minister Nirmala Sitharaman shared some good news for the middle class in the Union Budget 2023-24. This budget was presented on February 1, 2023. Let's see all the benefit for the middle class, here is the union budget 2023-24 summary:

1.Tax changes: 

Union Budget 2023-24 presented Tax rules that are a bit friendlier! Now, if you earn up to ₹7 lakh per year, you don't have to pay any income tax. This is an increase from the previous limit of ₹5 lakh.

2. Tax slabs: 

The new tax system of the central govt budget 2023-24 made things simpler. Instead of six, there are now five tax slabs. If a person earns between ₹0 to ₹3 lakh, he/she doesn't have to pay any tax. For those earning between ₹3-5 lakh, the tax rate is five per cent. So, if your income is between ₹6–9 lakh, the tax rate is 10 percent, and for those earning ₹12–15 lakh, the tax rate is 20 percent. 

3. Standard reduction: 

The standard deduction, which is like a discount on your income before calculating taxes, was raised. It used to be ₹50,000, but now it's ₹52,500. So, a bit more of your money is not counted when figuring out how much tax you owe.

4. Investment limit for deduction under Section 80C: 

If you invest in things that help you save on taxes, like certain financial instruments, there's good news! The limit for these investments, under section 80C of the Income Tax Act, used to be ₹1.5 lakh, but now it's increased to ₹2.5 lakh. So, now you can put more money into these instruments, and it can reduce the amount of income that gets taxed.

5. Education: 

This includes more funds for scholarships, which are like financial gifts to help students, and also additional support for schools and colleges. So, there's more financial help available for education in general.

6. Housing: 

The budget prioritized affordable housing, simplifying home purchases. It provided enhanced tax benefits for both developers and buyers, offering financial advantages in the process. This initiative aimed to make housing more accessible and beneficial for those involved in constructing and acquiring affordable homes.