Six Money-Related Announcements that May Impact your Personal Finance

Last update: 01 February 2023 14:03 GMT

Finance Minister Nirmala Sitharaman made a number of announcements while presenting the Budget statement for fiscal year 2023-24. Some of the most important announcements with the new tax regime now the default tax regime is income tax refund for individuals.

Here are six money-related changes suggested by FM Sitharaman that can affect your finances.

New Tax Regime, Now Default Tax Regime

Finance Minister Nirmala Sitharaman said on Wednesday that the new tax regime is now the default tax regime. Sitharaman, while presenting his Budget statement for the 2023-24 fiscal year, told Parliament that the government will take a series of measures to make the voluntary tax regime more attractive and will give up revenue in the process.

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Income Tax Refund

Nirmala Sitharaman announced a major change in the current income tax structure for salaried employees. She offered to increase the income tax refund from Rs 5 lakh to 7 lakh income tax for those who chose the new tax regime.

“The new tax rates are Rs 0 to 3 lakhs – zero, Rs 3 to 6 lakhs – 5%, Rs 6 to 9 Lakhs – 10%, Rs 9 to 12 Lakhs – 15%, Rs 12 to 15 Lakhs – 20% and 15 Above Lakh – 30%,” says Union Finance Minister Nirmala Sitharaman

Standard Deduction Limit Increased

Now a standard deduction of Rs 45,000 has been made to the new tax regime for the salaried class and pensioners. A person with an annual income of Rs 9 lakh will now pay taxes of Rs 45,000 which is 5 percent of salary – a reduction of Rs 15,000 from the current Rs 60,000.

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Seniors Savings Program (SCSS)

Finance Minister Nirmala today extended the maximum deposit for the seniors savings scheme. “The seniors savings plan will be extended from Rs 15 lakh to a deposit account of Rs 30 lakh,” Finance Minister Nirmala Sitharaman said.

Government raises limit for Post Office Monthly Revenue Plan

Finance Minister Nirmala today increased the limit on the small savings plan Post Office Monthly Revenue Plan (POMIS). The new limit will be Rs 9 lakh at Rs 4.5 lakh for a single account and 15 lakhs at Rs 9 lakh for joint account holders.

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SMEs and Professionals

FM said MSMEs are the growth engines of our economy. Micro businesses with a turnover of up to Rs 2 crore and certain professionals with a turnover of up to Rs 50 lakh can take advantage of hypothetical taxation. I propose to provide increased limits of Rs 3 million and Rs 75 lakh respectively to taxpayers whose cash income is not more than 5 percent.”

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