Breaking Down the Union Budget 2023: Key Highlights of Budget for Indian Economy and Citizen's Lives

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 analysispotential 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

Union Budget 2023


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 Budget 2023

Key Highlights of Union Budget 2023-24.

 General - Part A

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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