Honorable Finance Minister Ms. Nirmala Sitharaman has presented union budget on 2nd Feb, 2023. Brief highlights proposal made in union budget 2023 is as under;
TAX PROPOSALS
TAX PROPOSALS – PERSONAL TAXES
- Rebate limit is increased from 5 Lakh to 7 Lakh under new tax regime
- Tax limit increased to 3 Lakh in New tax regime and slab is is revised as under;
- Income from 3 Lakh to 6 Lakh – 5%From 6 Lakh to 9 Lakh – 10%From 9 Lakh to 12 Lakh – 15%From 12 Lakh to 15 Lakh – 20%
- Above 15 Lakh – 30%
- Salaries person, pensioner including family pension will get benefit of 50000 standard deduction in new tax regime
- Rate of highest surcharge is reduced from 37% to 25% in new tax regime.
- New tax regime will be considered as default
- Most of personal income tax benefit given for new tax regime. Individuals having large investment or deductible expenditure (Like Insurance premiums, Home loan, electric vehicle loan, provident funds, etc) generally opts for old regime only – So they will not have much benefit from this. To understand more on existing income tax slab under both regime, go to https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1#taxslabs
TAX PROPOSALS – CORPORATE DIRECT TAXS
- Common IT return form will be introduced
- Limit for Presumptive income declaration for MSME is increased from 2 crore to 3 crore and from 50 Lakh to 75 Lakh in case of professional if cash receipts is less than 5%.
- Deduction of expense on supply received from MSME will be on payment basis.
- Cash deposit limit of 2 Lakh per member for loan to and loans by rural or agri co-operative rural society.
- Start up can claim carry forward of losses evenif there is change in shareholding – Time limit increased from 7 years to 10 years
- 100 joint commissioners will be placed for early disposal of small appeals
- Limit of 10 Crore kept for getting benefit in sec 54 and 54F
TAX PROPOSALS – INDIRECT TAXS
- Reduction of basic custom duties on certain some parts of EV battery, parts of mobiles, parts of TV, chemical payments, compounded rubber
- Increased in basic custom duties in on electric kitechn chimney, article of gold and silver bars, cigarette.
- Reduced basic custom duty to continue on some part of steel.
FISCAL TARGETS
- Revised estimate of F.Y. 22-23
- Receipt of 23.40 Lakh Crore (20.90 lakh crore from taxex)
- Expense of 41.90 Lakh Crore
- Fiscal deficit – 6.4% of GDP
- Estimated figure of F.Y. 23-24
- Receipt of 27.20 Lakh Crore
- Expense of 45 Lakh Crore
- Fiscal deficit – 5.90% of GDP
NON-TAX PROPOSALS
INCLUSIVE DEVELOPMENT
- Agricultural credit target is increased to 20 Lakh Crore
REACHING LAST MILE
- Establishment of Preventive Vulnerable Tribal Group (PVTG) with allocation of 15000 Crore for development of tribal people
- PM Awas Yoyjna allocation is increased by 66% to 79000 crore
- Support to pay penalty or bail money to poor people
INFRASTRUCTURE
- Capital Investment increased by 33% to 10 Lakh Crore (3.3% of GDP)
- Effective capital investment will be 13.70 Lakh Crore (4.5% of GDP)
- 15-year interest free loan to State amounting to 1.30 Lakh Crore
- Allocation of 2.40 Lakh Crore for Railway
- 50 additional airport will be renewed
- Investment of 10000 Crore per year in urban infra development fund
UNLEASHING POTENTIAL
- Under Mission Karmyogi and ease of doing business, 39000 compliances and 3400 provisions are reduced.
- Jan Vishwas Bill will be introduced to amend 42 central act
- 3 new Centre for excellence for artificial intelligence will be set up in top institute
- PAN will be common business identifier for all digital system of government agency
- Unified filing process for return in simplified form in for filing of same kind of information to different government agency.
- Vivad Se Vishwas Scheme 1: Return of 95% money to MSME for failure to execute contract
- Vivad Se Vishwas Scheme 2: For settling contractual dispute involving government and government undertaking.
- E-courts Phase III with 7000 crore outlay.
- 100 labs in engineering institute for 5G.
GREEN GROWTH
- 35000 Crore outlay for priority capital investment energy and net zero objective.
- 19000 Crore for National green hydrazone mission.
- Launch of PM PRANAM and GO BARTAN
YOUTH POWER
- Pradhan Mantri Kausal Yojna 4.0 for 3 Lakh youth.
- 30 Skill India International Centre will be set up.
- National apprentice promotion scheme for stipend payment to 47 Lakh
- For Tourism, 50 destinations will be selected through challenge mode.
FINANCIAL SECTOR
- 9000 Crore for Credit guarantee scheme for MSME which will result in additional loan of 2 Lakh crore and will reduce cost by 1%.
- GIFT IFSC – Delegation of power to IFSCA and set up of single window clearance system for registration with IRDA, SEBI, RBI, GSTN
- Introduction of new small saving scheme named Mahila Sanman Saving Certificate for two years up to March, 2025. Maximum investment of 2 Lakh for two year with interest rate of 7.50%.
- Limit in Senior citizen saving scheme increased from 15 Lakh to 30 Lakh
- Limit for Monthly saving income increased from 4.50 Lakh to 9 lakh (increased from 9 to 15 for joint)