HIGHLIGHTS OF BUDGET 2023

Limelight of Budget:

Fiscal deficit target for financial year 2024 has been cut from 6.4% of GDP to 5.9% of GDP.
Per capita income at 1.97 lakhs, which have more than doubled in last 5 years.
India emerges as 5th largest economy of the world.
For enhancing ease of business more than 39000 compliances have been reduced.
Digital payment of 126 lakhs crores made in year 2022.
2 lakhs crores direct transfer to farmers.
Government to supports Agri-Tech startups for this Agriculture Accelerator Fund is to be setup.
1.25 lakhs crores have been allocated for Ministry Agriculture & Farmer’s welfare.
India to become global hub for millets.
Indian institute of millet research will be made international.
Agriculture societies, dairy and fishery societies to be set up.
157 new nursing colleges to be set up.
50 additional airports to be revived for better connectivity.
Urban development infrastructure fund to be set up and to be managed by national housing banks.
More than 3000 criminal provisions which had criminal implication are decriminalized.
7000 cr. Rupees is allocated for phase 3 of e-courts.
National data governance policy to be brought up.
6000 cr. Rupees is allocated to fisheries.
Capital investment outlay to be increased to 10 lakhs crores.
9000 crores Rupee is allocated to credit guarantee scheme.

Direct tax:

limit for presumptive taxation scheme under section 44AD and 44ADA is increased from 2 crores to 3 crores and from 50 lakhs to 75 lakhs respectively.
Organization receiving goods or services from MSME can show it as expenses only when payment is made to such MSME.
New tax regime under section 115BAC shall also apply to AOP, BOI and Artificial Judicial Persons
No tax will be paid on income up to Rupee 7.5 lakh a year.
Limit to avail benefit of section 87A has been increased from 5 lakhs to 7 lakhs.
Government proposes to reduce highest surcharge rate on income above 5 crore rupees from 37% to 25% in new tax regime.
New slab rates:

Rupees 0-3 lakhs: Nil
Rupees 3-6 lakhs: 5%
Rupees 6-9 lakhs: 10%
Rupees 9-12 lakhs: 15%
Rupees 12-15 lakhs: 20%
Rupees over 15 lakhs: 30%

An individual with annual income of Rupees 9 lakh will have to pay only Rupees 45,000 in taxes.
An individual with Income of Rupees 15 lakh will have to pay Rupees 1.5 lakh in tax as compared to Rupees 1.87 lakh.
Standard deduction to taxpayers (persons having income from head “salaries”) has been introduced under the new regime.
Sum received from Agniveer Corpus Fund by Agniveers to be exempted.
Tax exemption removed in insurance policies with premium over Rupees 5 lakh.
For online games, government proposes to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of fiscal year.
Tax exemption on leave encashment on retirement of non-government salaried employees increased to Rupees 25 lakh from Rupees 3 lakh.
A higher limit of Rupees 3 cr. for TDS on cash withdrawal to be provided to co-operative societies.
Next-generation Common IT Return Form to be rolled out for taxpayer convenience.
Grievance redressal mechanism to be strengthened.
TDS rate to be reduced from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases.

Indirect Taxes:

16% tax hike on certain cigarettes.
New cooperatives that commence manufacturing till March 2024 to get lower tax rate of 15%.
Basic customs duty on crude, glycerin reduced to 2.5%.
Import duty on silver bars hiked to align it with gold, platinum.
Extend customs duty cut on imports of parts of mobile phones by 1 year.
To promote TV manufacturing, customs duty on open cells of TV panels reduced to 2.5%.
Concessional duty on lithium-ion cells for batteries extended for another year.
Number of basic custom duty rates on goods other than textiles and agriculture reduced from 21% to 13%.

Items that became costlier:

Items that became cheaper:

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