The Union Budget 2023 has just been presented by FM Nirmala Sitharaman, bringing with it a host of financial policies and plans aimed at boosting the Indian economy and improving the lives of its citizens. This year's budget has a focus on infrastructure development, healthcare, and agriculture, among other sectors. A special consideration also given to middle-class. As the nation eagerly waits to see the results of these measures, it's crucial to take a closer look at the budget and understand how it will impact the economy and common people. In this blog, we'll provide Key Highlights of Union Budget 2023-24. Please comment below about your analysis, potential benefits, and potential drawbacks and you see this budget as whole? We will start with Part B of Key Highlights of Union Budget 2023-24
Key Highlights of Union Budget 2023-24 (Part B)
Indirect Taxes
1. Customs duty on goods of textiles, toys, bicycle reduced from 21 to 13%2. To promote Green Mobility - basic customs duty concession for lithium ion battery
3. To promote Electronics manufacture- relief on customs duty
for camera lens and lithium battery
4. Television - TV panels customs duty reduced
5. Electric kitchen chimney to reduce inverted duty structure
from 7.5 to 15 percent
6. Benefit for ethanol blending program and acid program and
epichlorohydrine
7 Marine Products- to
promote exports - shrimps, etc. Duty on shrimpfeed reduced
8. Basic Customs duty reduced for seeds in manufacture for
diamonds
9. Customs duty to increase in silver bars
10. Steel - concessional customs duty on steel and ferrous products
11. Copper - concessional customs duty on copper
12. Rubber - concessional customs duty on rubber
13. Cigarettes - increased tax
Direct Taxes
1. Common IT form and grievance redressal system
2. MSME - avail benefit of presumptive taxation increased to
44AD to 3 crores
Professionals u/s 44ADA - 75 lakhs
Provided receipt in cash doesn't exceed 5%
3. TDS only on payment for deduction
4. Co-operatives tax
-15%
Higher limit of 2 lakh per member for cash deposit in
agricultural banks
Higher limit of Rs. 3 crores on TDS for cooperative societies
5. Startups
To avail startup benefits from 31-03-2023 to 31-03-2024
6. 100 new joint commissioners for appeal
7. S.54 to S.54F capped at 10 crores
8. TDS on Online gaming -
9. TDS 30% to 20% on taxable portion of EPF
10. Extending funds for GIFT and IFSC
Personal Income Tax
1. Rebate for income up-to 7 lakhs u/s 87A in the new tax
regime
2. New tax regime from
0-3 lakhs nil
3-6 lakhs- 5%
6-9 lakhs 10%
9-12 lakhs 15%
12-15 lakhs 20%
Above 15 lakhs- 30 %
3. Standard deduction for new tax regime for Rs. 15.5 lakhs or more -52,500
4. Reduction of highest surcharge from 37% to 25% on new income tax regime
5. Limit on tax exemption for leave encashment is increased from 3,00,000 to 25,00,000
6. New income tax regime default regime
Key Highlights of Union Budget
2023-24.
1. EPFO Numbers doubled to 27
crores
2. Agriculture accelerator fund
to boost startup in Agri sector. Special scheme to boost fisheries
3. 38,800 teachers will be
employed in 3.5 lakh Eklavya tribal school.
4. Capital outlay of Rs. 2.40
lakh crore for Railways.
5. 50 New Airports and Heliports
to be made.
6. Rs. 10,000 crore for urban
infra fund every year
7. Rs. 75,000 crore for 100
transport infra projects
8. 3 Centers of Excellence for
“Artificial Intelligence” will be set up.
9. KYC procedure to be
simplified. PAN to be come common business identifier.
10. Scope of Digi locker to be
increased.
11. More than 39,000 compliances
reduced. Jan Vishwas Bill to amend 42 laws
12. Rs. 35,000 crore for Energy
transmission
13. 10,000 bio input research
centers to be set up.
14. 30 Skill India International
centers to be set up.
15. NFIR (National Financial
Information Registry) to be launched for financial strategy.
16. Reducing cost of MSME Credit
by 1%. Infusion of Rs. 9,000 crore in corpus for MSME credit.
17. ‘Mahila Samman Bachat Scheme’
for Women for Rs. 2,00,000 @ 7.5%
18. SCSS enhanced from 15 lakh to
30 Lakh.
Direct and Indirect tax
1. Promote domestic manufacturing
and exports.
2. Tax exemption on Capital Goods
and Lithium batteries.
3. Mobiles, camera lenses to
become cheaper.
4. Gold, Silver & Diamonds,
cigarettes, imported rubber to get expensive.
5. Enhanced limit for 3 crore and
75 lakhs for presumptive taxation.
6. Higher TDS limit of RS. 3 cr
for Cooperatives
7. New IT Return Form for easier
filing .
8. 100 Joint Commissioners to be
appointed for disposal of small appeals.
9. TDS reduced on EPF withdrawal
10. Section 54 and 54F to be
amended.
11. Rebate limit increased to 7
lakh in new tax regime.
12. Number of slabs reduced from
7 to 5 in new tax regime.
13. Only 5% tax on Individual’s
Annual income of 9,00,000 only to pay Rs. 45,000 as tax.
14. Salaried class and pensioner:
Standard Deduction increased
15. Highest tax rate 42.74 %
reduced
16. Propose to reduced Higher
surcharge rate from 37 % to 25% in new tax regime.
17. Leave Encashment: Limit
increased from Rs. 3,00,000 to Rs. 25,00,000.
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