Key Points
- FY-2024 fiscal deficit target at 5.9% of GDP
- Outlay for capital spending increased 33% to 10 trillion rupees in 2023/24
- Cigarettes to get costlier as Budget proposes 16% hike in duty
- To set up agriculture accelerator fund
- Increases budget allocations to 790 billion rupees for affordable housing in 2023/24
- Finance Minister says increase in public capex key to crowding in private investments
- Indian economy has become the fifth-largest economy in the world in last nine years
- Budget adopts seven priorities including inclusive, green growth
- Agricultural credit target raised to 20 trillion rupees ($244.42 billion) for 2023/24
- Sitharaman says the economy is growing the fastest among major economies
FM Nirmala Sitharaman also outlined seven priorities for the 'First Budget in Amrit Kaal'
- Inclusive development
- Reaching the last mile
- Infra & investment
- Unleashing the potential
- Green growth
- Youth power
- Financial sector
Part B of Honourable Finance Minister speech in Budget 2023
Indirect Taxes
- Customs duty on goods of textiles, toys, bicycle reduced from 21 to 13%
- To promote Green Mobility – basic customs duty concession for lithium ion battery
- To promote Electronics manufacture- relief on customs duty for camera lens and lithium battery
- Television – TV panels customs duty reduced
- Electric kitchen chimney to reduce inverted duty structure from 7.5 to 15 percent
- Benefit for ethanol blending program and acid program and epichlorohydrine
- Marine Products- to promote exports – shrimps, etc. Duty on shrimpfeed reduced
- Basic Customs duty reduced for seeds in manufacture for diamonds
- Customs duty to increase in silver bars
- Steel – concessional customs duty on steel and ferrous products
- Copper – concessional customs duty on copper
- Rubber – concessional customs duty on rubber
- Cigarettes – increased tax
Direct Taxes
- Common IT form and grievance redressal system
- 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%
- TDS only on payment for deduction
- TDS only on payment for deduction
- Higher limit of 2 lakh per member for cash deposit in agricultural banks
- Higher limit of Rs. 3 crores on TDS for cooperative societies.
- Startups
- To avail startup benefits from 31-03-2023 to 31-03-2024
- 100 new joint commissioners for appeal
- S.54 to S.54F capped at 10 crores
- TDS on Online gaming –
- TDS 30% to 20% on taxable portion of EPF
- Extending funds for GIFT and IFSC
Personal Income Tax
- Rebate for income upto 7 lakhs u/s 87A in the new tax regime
- New tax regime tax rates 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 %
- Standard deduction to new tax regime for salaried class and pensioners.
- Reduction of highest surcharge from 37% to 25% on new income tax regime.
- Limit on tax exemption for leave encashment is increased from 3,00,000 to 25,00,000.
New income tax regime default regime.
