Budget 2023 - Modinomics 2023 -Atmanirbhar budget

[CSSwati Rawat]

Budget 2023 - Deep review

7% Growth despite slowdown - FM 

Major Direct tax proposals-

 1. Rollout of next gen ITR form 

 2. New limit for 44AD & ADA - Rs. 3 crore & 75 Lacs

 3. Expense deduction to MSME to be allowed on payment basis

 4. New cooperatives manufacturing tax @ 15% if upto 31.03.24

 5. Higher loan limit /cash deposit Rs 2 lacs for PAC society - RDB

 Benefits for Startups -

a) Date of incorporation for startup extended to 31.03.24.

b) Extension of Carried Forward losses 7 yrs in case of change in shareholders.

Assessment procedures-

a) Selective scrutiny - More CIT to dispose off small appeals.

b) Extension of tax benefits for IFSC.

Personal Income tax-

a) Tax rebate limit extended to 7 lacs (new regime)

b) Change in tax slabs & new tax rates

0-3 L : Nil

3-6 L : 5%

6L-9L : 10%

9L-12L: 15%

12-15 L : 20%

15L +: 30%

Salaried class & pensioners(incl family pensioners) -

a) Standard deduction extended

b) Highest surcharge reduced from 37% to 25% .

c) Reduce the highest surcharge from 37% to 25% in the new tax regime, max rate of 39% - Now MMTR : 39%.

d) Leave encashment exemption (pvt) increased from 3 Lacs to 25 Lacs.

e) New tax regime is now default tax regime - Old tax regime will continue. 

General-

"Green Growth"
- Green hydrogen, clean energy storage and transmission are the key drivers of the government’s “Green Growth” priority sector.
- Battery energy storage systems with capacity of 4,000 MWh will be supported with eligible gap funding.
-  New framework for pumped storage will also be formulated.
- Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed with an investment of Rs 20,700 crore including Central support of Rs 8,300 crore.
- A green credit programme for encouraging behavioural change will be notified under the Environment Protection Act.

1. 50-year interest free loans will continue for states.

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. MSME Credit Redyby 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. Sr.. Citizen scheme investment [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.