2. What is Budget?
A budget is a financial plan for a specified period say
Year in general. The Government of India i.e., Ministry
of Finance after consultation with all the other
ministries prepares the annual budget. The budget will
be generally presented by the Finance Minister on the
first day of February in Parliament. The
proposed budget will come into effect from April 1st of
the respective year.
3. Why Budget 2023 is unique?
International economic organisations and bodies like IMF, World
Bank, OECD, WTO predicting India is at the center stage of world
economy with relatively highest forwarding GDP despite of many
macro-economic headwinds such as global recession, higher
inflation, fuel prices, and protectionism. With this background, it's
not just India but the world is watching how the budget 2023 would
be presented and what impact or influence that it is going to bring.
Undoubtedly, most awaited budget that is expected to have fiscal
consolidation and Capital expenditure on par with earlier year to
spur the employment opportunities and to activate the private
sector spending.
4. Key Takeaways & Analysis
• Middle class salaried friendly budget where the
salaried get anywhere between 25K to 45K benefit from
Tax Relief up to Rs. 7L.
• A ray of hope given for the agriculture sector by
allocating Rs. 20L Crores
• Promotes ease of doing business and taxes.
• Relief to MSME in the area of taxes and promoting
employment to an extent through higher than the
normal infrastructure spending.
5. • What are we missing ?
Rationalisation in GST slab rates to promote some and
discourage import oriented goods and / or services.
•Supporting tax revenue against a whopping 33%
increase in infrastructure spending is not clear.
•No allocation to increase the tax enforcement
6. Budget 2023 Highlights
Taxes in General
1. Fiscal Deficit for FY 2023-24 is 5.9% and it is targeted
to be below 4.5% by 2025-26
2. States will be allowed a fiscal deficit of 3.5% of GSDP
1. India’s economic growth in the current year is
estimated to be at 7% which is highest among all
major economies
7. Income Tax
1. A relief for MSME’s and professionals is provided under presumptive taxation
scheme. The threshold under 44AD is increased to Rs 3 crores from Rs 2 crores
and threshold under 44ADA is increased to Rs 75 lakhs from Rs 50 lakhs.
2. Rebate u/s 87A has been increased to Rs 7 lakhs from Rs 5 lakhs under new tax
Regime. This is not applicable for Old tax regime. This was an expectation Team
EZTax.in
3 .The highest surcharge rate of 37% is decreased to 25% under New Tax Regime.
Taxpayers with taxable income of above Rs 5 crores is required to pay only 25%
surcharge instead of 37%.
4. Income Tax slab rates under New Tax regime has been changed which is as
follows.
Rs 0-3 lakhs - 0%
Rs 3-6 lakhs - 5%
Rs 6-9 lakhs - 10%
Rs 9-12 lakhs - 15%
Rs 12-15 lakhs - 20%
8. 5. The Tax exemption limit is increased to Rs 3 lakhs for the
taxpayers under New Regime
6. Leave Encashment exemption on retirement of non-
government salaried employees is increased to Rs 25 lakhs
from Rs 3 lakhs
7. New tax regime will be the default tax regime. However
taxpayer can continue to avail the old tax regime
8. The deduction from capital gains on investment in
residential house u/s 54 and 54F is capped at Rs 10 crore. This
impacts very few people in the country
9. Deduction for expenditure on payments made to MSME's
will be allowed only when payment is actually made
10. w.e.f 01/04/2023, if aggregate of premium for life insurance
policies issued on or after 01/04/2023 is above Rs 5 lakhs,
income from only those policies with aggregate premium upto
Rs 5 lakhs shall be exempt
9. 11. TDS Rate on EPF withdrawal in Non PAN cases is reduced to
20% from 30%
12. The threshold for TDS on Cash withdrawal from co-operative
banks is increased to Rs 3 crores
13. Date of incorporation for startups for tax benefits is extended
to 31/03/2024 from 31/03/2023
14. The benefit of carry forward of losses on change of
shareholding of start-ups is extended to 10 years from 7 years
15. New Co-operatives which will commence manufacturing
activities till 31/03/2024 will get a lower tax benefit of 15%
10. for NRIs
No Changes or new rules has been notified for NRI's
GST
•No major changes in GST
•A simplified tax structure with fewer tax rates is proposed
which helps in reducing compliance burden and improving
tax administration
Customs Duty
•Reduction in number of basic customs duty rates on goods, other
than textiles and agriculture, from 21 to 13.
•customs duty exemption is extended to import of capital goods
and machinery required for manufacture of lithium-ion cells for
batteries used in electric vehicles
11. •Relief in customs duty on import of certain parts and
inputs like camera lens
•Reduction in Basic Customs duty on parts of open cells of
TV panels to 2.5%
•Increase of import duty on silver door, bars and articles to
align then with gold and platinum
•The basic customs duty rate on compounded is increased
from 10% to 25% or Rs 30 per kg whichever is lower
•NCCD on specified cigarettes is revised upwards by 16%
•Exemption from basic customs duty on raw materials for
manufacture of CRGO steel, ferrous scrap and nickel
cathode is being continued
•Reduction in basic customs duty on lab grown diamonds
12. Ease of Doing Business
•PAN will be used as common identifier for all business
establishments to bring common data among different
agencies to enable ease of business.
•Central processing for new SEZ & clearances
Minimum Government & Maximum
Governance
There are new budget allocation in this category.
13. Innovation, R&D
1. Agriculture accelerator fund will be set up to encourage Agri-startups by
young entrepreneurs in rural areas
2. Atmanirbhar clean plant program to boost the availability of disease
free, quality planting material for high value horticultural crops
3. Centres of excellence for AI to enable Make AI for India, and Make AI
work for India will be established.
Reinvigorating Human Capital
1. 3 centres of excellence for artificial intelligence will be set up in top
educational institutions for realising the vision of Make AI in India and
Make AI work for India
2. NITI Aayog will be continued for an additional 3 years
3. 100 labs for developing applications using 5G will be setup in engineering
institutions
14. Infrastructure
1. Capital investment outlay is increased by 33% to Rs 10 lakh crore which will
be 3.3% of GDP
2. Capital outlay of 2.40 lakh crore has been provided for railways
3. 50 additional airports, heliports, water aerodromes and advance landing
grounds will be setup for improving regional air connectivity
Health
1. 157 new nursing colleges will be established
2. Facilities in select ICMR labs will be made available for research by public
and private medical college faculty and private sector R&D teams
3. To promote research and innovation in pharmaceuticals , a new
programme will be taken up through centres of excellence.
4. A Mission to eliminate sickle cell Anaemia by 2047 will be launched
Notes de l'éditeur
PRESENTED BY – ABHISHEK SHIVHARE
International economic organisations and bodies like IMF, World Bank, OECD, WTO predicting India is at the center stage of world economy with relatively highest forwarding GDP despite of many macro-economic headwinds such as global recession, higher inflation, fuel prices, and protectionism. With this background, it's not just India but the world is watching how the budget 2023 would be presented and what impact or influence that it is going to bring.
Undoubtedly, most awaited budget that is expected to have fiscal consolidation and Capital expenditure on par with earlier year to spur the employment opportunities and to activate the private sector spending.
