Understanding the Union Budget 2022-23 and Income Tax Slab Changes
The Union Budget for 2022-23 unveiled by Finance Minister Nirmala Sitharaman on February 1, 2022, aimed to bolster the Indian economy in the wake of the COVID-19 pandemic. This budget focused on infrastructure development, healthcare, and digital transformation, while catering to the needs of diverse sectors.
Key Highlights of the Union Budget 2022-23
The budget emphasized on various sectors and initiatives to support the economic recovery:
Infrastructure Investment
Allocated 7.5 lakh crore for capital expenditure, representing a 35.4% increase from the previous fiscal year Stress on the National Infrastructure Pipeline and the Gati Shakti plan for multimodal connectivityHealthcare
Allocated 86200 crore for the health sector, including the PM Ayushman Bharat Health Infrastructure MissionTax Proposals
No major alterations in corporate tax rates Simplification of tax compliance for small and medium enterprisesDigital Initiatives
Introduction of the Digital Rupee through blockchain technology by the Reserve Bank of IndiaSocial Welfare
Continued support for the PM Garib Kalyan Yojana and various rural development programsIncome Tax Slab Changes
While the Union Budget 2022-23 preserved the income tax slabs from the previous year, it continued the introduction of the new tax regime that was launched in 2020. Here are the detailed changes:
Old Tax Regime with Deductions
Income RangeTax Rate Up to 2.5 lakhNIL 2.5 lakh to 5 lakh5% 5 lakh to 10 lakh20% Above 10 lakh30%New Tax Regime without Most Deductions
Income RangeTax Rate Up to 2.5 lakhNIL 2.5 lakh to 5 lakh5% 5 lakh to 7.5 lakh10% 7.5 lakh to 10 lakh15% 10 lakh to 12.5 lakh20% 12.5 lakh to 15 lakh25% Above 15 lakh30%Conclusion
The Union Budget 2022-23 was strategically designed to promote economic recovery and growth. It made substantial commitments to infrastructure and healthcare while maintaining stability in the tax structure. The income tax slabs provided flexibility to taxpayers, allowing them to choose the most beneficial tax regime based on their financial situations.
The focus on advancements in digital initiatives, including the introduction of the Digital Rupee, highlights India's commitment to modernizing its financial ecosystem.