Hello Everyone, The most awaited budget has
been announced by Smt. Finance Minister Nirmala Sitaraman and we are here to give you a quick update on the same.
On an overall basis, Unionbudget2023 is an attention-seeking budget. To list out there are many proposals on many things but the impact of all those things are same. The main example for this is, they have reduced Income tax rates, Rebates, and surcharges where you won’t be having any deductions & exemptions that will yield the same impact as of the old regime. But it will create impact to government & seek attention from the public that Government has reduced tax rates.
There are seven Priorities in Budget 2023 as below.
- Inclusive development
- Reaching the last mile
- Infra & investment
- Unleashing the potential
- Green growth
- Youth power
- Financial sector
Capital investment outlay increased by 33%
Capital investment outlay being increased by
33% to Rs 10 lakh crores, which would be 3.3% of GDP.
50-year interest-free loan to State
governments extended for one more year
50 additional airports, heliports, water
aerodromes, and advanced landing zones to be revitalised. 100 critical
transport infra projects for steel, ports, fertilizer, coal, foodgrain sectors
have been identified with an investment of Rs 75,000 crore including Rs 15,000
crore from private sources.
PAN to be the Common Identifier
The PAN will be used as a common identifier
for all Digital Systems of specified government agencies.
National Hydrogen Mission
Finance Minister allocated Rs 19,700 crore to
the National Hydrogen Mission. The objective is to reach hydrogen production
capacity of 5 metric million tonnes by 2030.
Pradhan Mantri Kaushal Vikas Yojana 4.0,
In order to skill the youth for international
opportunities, 30 Skill India International Centres will be set up across
different States
Push for tourism
50 tourist destinations will be selected
through challenge mode to be developed as a whole package for domestic and
international tourism: FM Nirmala Sitharaman
Revamped credit guarantee scheme for MSMEs
Revamped credit guarantee scheme will take
effect from April 1, 2023, through the infusion of Rs 9,000 crore in the
corpus. This will enable additional collateral-free credit of Rs 2 lakh crore
to MSMEs
National Data Governance Policy
To unleash Innovation and research by Startups
and Academia, a National Data Governance Policy will be brought out. This will
enable access to anonymized data: FM Nirmala Sitharaman
Bio input resource centers
Over the next 3 years, one crore farmers will
get assistance to adopt natural farming. 10,000 bio input resource centers will
be set up
Fiscal Deficit
FM Sitharaman fixes fiscal deficit for 2023-24
at 5.9%
The revised fiscal deficit is at 6.4% of GDP
Fiscal deficit target of below 4.5% by 2025-26
100 labs for developing apps using 5G
services
100 labs for developing apps using 5G services
will be set up in engineering institutions. To realise new range of
opportunities, business models & employment potential, labs will cover
among others, apps like Smart Classrooms, Precision Farming, Intelligent
Transports Systems & Healthcare: FM
Custom Duty
The government proposed Customs duty
exemptions on the import of capital goods and machinery required for
lithium-ion batteries. The government also proposes to increase customs duty on
silver to align with duty on gold and platinum.
- Except agri custom duty reduced to 13% from 21%
- Relief of custom duty on import of certain parts like cam are lens
- Manufacture of tv on parts of cells, custom duty now be 2.5%
- BCD on electric chimney 7.5 to 15% and on heat coil to be 15% from 20
- Deethyl alchohol on BCD reduced to 2.5%
- Marine products- shrimp feed duty reduced.
- BCD on seeds of lab grown diamond reduced.
- Exemption in bcd of some products of input of iron and steel reduced or removed.
Cigarettes to get costlier
Budget proposes 16% hike in duty on certain
cigarettes.
One time small Saving sheme
FM announces Mahila Samman Bachat Patra –
one-time small savings scheme for ₹2 lakh deposit for two-year period with
fixed interest of 7.5%
Major changes in Income Tax
Presumptive Taxation
The presumptive taxation limits for MSME and
Professionals have been increased to Rs.3 crore and Rs.75 lakh respectively.
Previously MSMEs with annual turnover up to Rs.2 crore and Professionals with
income up to Rs.50 lakh were allowed to go for presumptive taxation if their
total cash receipts were not more than 5% of the total receipts.
No tax for those earning upto 7 lakhs( Under New regime only)
Rebate u/s 87A- Income rebate limit increased
to Rs 7 lakh from Rs 5 lakh in new tax regime
Revised tax slabs under new tax regime
Under the new tax regime, income of Rs 0-3
lakh is nil.
Income above Rs 3 lakh and up to Rs 6 lakh to
be taxed at 5%.
Income of above Rs 6 lakh and up to Rs 9 lakh
to be taxed at 10% .
Income of above Rs 9 lakh and up to Rs 12 lakh to be taxed at 15% .
Income above Rs 12 lakh and up to Rs 15 lakh
to be taxed at 20%.
Income above Rs 15 lakh to be taxed at Rs 30%.
Increase in Standard Deduction
Standard deduction increased to Rs 52,500 a
year from the current Rs 50,000
Highest surcharge reduced
Highest surcharge rate from 37 per cent
proposed to be reduced to 25 per cent in the new tax regime.
Rebate Limit, Surcharge & Basic exemption Limit is still same in Old regime.
Other updates in Income Tax, Customs & GST.
- Leave Encashment: Limit increased from Rs. 3,00,000 to Rs. 25,00,000
- Highest tax rate 42.74 % reduced
- Section 54 and 54F to be amended
- TDS reduced on EPF withdrawal
- 100 Joint Commissioners to be appointed for disposal of small appeals.
- Promote domestic manufacturing and exports.
- Tax exemption on Capital Goods and Lithium batteries.
- Mobiles, camera lenses to become cheaper.
- Gold, Silver & Diamonds, cigarettes, imported rubber to get expensive.
- Enhanced limit for 3 crore and 75 lakhs for presumptive taxation.
- Higher TDS limit of RS. 3 cr for Cooperatives
- New IT Return Form for easier filing
- IT Return processing reduced from 93 days to 16 days.
- IT benefit & C/o losses till 10 years of completion
- GST exempted for blending of CNG
- GST paid compressed biogas to be duty free.
Other highlights in Budget
- EPFO Numbers doubled to 27 crores
- Agriculture accelerator fund to boost startups in the Agri sector. Special scheme to boost fisheries
- 38,800 teachers will be employed in 3.5 lahks Eklavya tribal schools.
- Capital outlay of Rs. 2.40 lakh crore for Railways.
- Rs. 10,000 crores for urban infra fund every year
- 3 Centers of Excellence for “Artificial Intelligence” will be set up.
- KYC procedure to be simplified. PAN to become a common business identifier.
- Scope of Digi locker to be increased.
- More than 39,000 compliances were reduced. Jan Vishwas Bill to amend 42 laws
- Rs. 35,000 crores for Energy transmission
- NFIR (National Financial Information Registry) is to be launched for financial strategy.
- Reducing cost of MSME Credit by 1%. Infusion of Rs. 9,000 crores in the corpus for MSME credit.
- SCSS enhanced from 15 lakh to 30 Lakh.
- Per capita income at ₹1.97 lac more than double in last 5 years
- India to become global hub for millets. India is largest producer and second largest exporter of all kinds of millets.
- Agricultural credit target to be made till 20 lac crore with support to dairy.
- ₹2200 crores for horticulture
- 157 new nursing colleges to be set up
- National book trust and children book trust to be revamped. New non curriculum books in regional Languages to be added.
- PMAVAS to be increased to ₹79000 crores. Increase of 66%
- Effective Capex to be ₹13.7 lac crores. Approx 4.5% of GDP
- Max deposit limit for senior citizen FD scheme enhanced to ₹30 lacs
- Entire 50 year loans to state to be spent on infra Capex. Mandatorily to be spent. Scrapping old govt vehicles.
- Fiscal deficit of states to be 3.5% of GSDP
- 2022-23 revised estimates are 24.3 lac crores (20.9 are tax receipts)
- 2023-24 incoming 27.25 lc crores and expense at 45 lac crores.
So Friends, here is all updates about budget. Stay tuned for more detailed analysis
