India's Finance Minister, Nirmala Sitharaman, today presented the Union Budget 2023, which focuses primarily on developing a technology and innovation driven, self-sufficient economy that will move India closer to Amrit Kaal. During her budget speech, Mrs. Sitharaman proposed to hike the tax exemption on leave encashment on retirement of non-government salaried employees to Rs 25 lakh from Rs 3 lakh.
"The limit of Rs 3 lakh for tax exemption on leave encashment is raised to Rs 25 lakh," she said.
Leave encashment is the amount of money received in exchange for a period of unused leave not taken by an employee.
The government implemented this significant tax exemption to assist the middle class, which is already feeling the effects of inflation.
Also Read | Union Budget 2023: Here Are "Saptarshi" - The 7 Priorities Of Union Budget
Meanwhile, Finance Minister Nirmala Sitharaman announced a big ticket budget ahead of next year's general elections that focused on the infrastructure and agribusiness sectors and raised the income tax rebate from Rs 5 lakh to Rs 7 lakh a year.
Also Read | Budget 2023: Huge Income Tax Relief, Infra And Jobs Push Ahead Of 2024: 10 Points
The government has outlined seven priority areas in the last complete budget before next year's general elections. The areas, Union Finance Minister Nirmala Sitharaman said, are "inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power, and the financial sector."
The Finance Minister announced a Rs 2.4 lakh crore investment in railways. This is the highest in almost a decade and four times the outlay made in last year's budget. "This is about nine times the outlay made in 2013-14," she underlined, comparing it with the last year of the Congress-led UPA.
(With inputs from agencies)