Union Budget 2023-24 Announcements: Finance Minister Nirmala Sitharaman on Wednesday presented the first Budget 2023 in the ‘Amrit Kaal’ and has announced a slew of measures to boost the economy as well as for benefitting various sections of society, especially the middle class and individual income taxpayers. Here Are Major Budget 2023 Announcements:
Announcements Around Tax Rule Changes
Finance Minister Nirmala Sitharaman eased both indirect and direct taxes in the Budget 2023. On the indirect taxes front, she proposed to reduce the number of basic customs duty rates on goods, other than textiles and agriculture, to 13 from the current 21. On the direct taxes front, Sitharaman announced
* Rebate has been raised for the resident individual under the new regime to Rs 7 lakh, from Rs 5 lakh currently.
* Standard deduction of Rs 50,000, which is currently available for only those under the old tax regime, has been extended to those opting for the new income tax regime in 2023-24.
* Highest surcharge rate reduced from 37% to 25%
* Encashment of earned leave up to 10 months of average salary, at the time of retirement in case of an employee (other than an employee of the central government or state government), is exempt. The maximum amount which can be exempted is Rs 3 lakh at present. It is proposed to issue notification to extend this limit to Rs 25 lakh.
* An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000 in taxes:
For MSMEs & Cooperatives Sector
Sugar cooperatives can claim payments prior to 2016-17 made to sugarcane farmers as expenditure. New cooperatives that commence the manufacturing activity till March 2024 will now attract lower tax rate of 15 per cent in 2023-24.
Sitharaman also proposed to increase limit for presumptive taxation for MSMEs and certain professionals to Rs 3 cr and Rs 75 lakh, respectively.
For Startups
* The government proposes to increase benefit of carry forward of losses for startups to 10 years.
Other Announcements:
* The finance minister has hiked the outlay under the PM Awas Yojana by 66 per cent to Rs 79,000 crore.
* The fiscal deficit target for FY24 has been fixed at 5.9 per cent. Sitharaman said the fiscal deficit for the current financial year 2022-23 has retained 6.4 per cent.
* Sitharaman announces a total capital outlay of Rs 2.4 lakh crore for Railways for 2023-24, the highest-ever allocation since 2013-14.
* A total of 100 critical transport infrastructure projects have been identified for implementation.
* The Pradhan Mantri Primitive Vulnerable Development Commission will be launched, and Rs 15,000 crore has been earmarked for the next 3 years.
* About 38,800 teachers will be hired for Ekalavya Model Residential Schools.
* Govt to provide Rs 5,300 cr assistance to drought-prone central region of Karnataka
* The PM Primitive Vulnerable Tribal Group scheme will be launched to benefit 3.5 lakh tribals.
* Finance Minister Nirmala Sitharaman during her Budget Speech 2023 said the government will continue 50-year interest-free loans to state governments for one more year.
* An expert committee will be set up to make infrastructure classification and financing framework suitable for Amrit Kaal.
Naveen Malpani, partner at Grant Thornton Bharat, said, “Economic empowerment of women, formation of large producers enterprises as well as focus on development of handicrafts in rural areas will help in economic development, push rural consumption and be beneficial for consumer companies. Agriculture accelerator funds will bring innovative and affordable solutions for farmers, PPP for sustainable cotton and high value horticultural crops will promote sustainable fashion.”
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