head2
head1
head 3

Union Budget 2023 Highlights

Finance Minister Nirmala Sitharaman’s fifth straight budget offers something for everyone, from revisions in income tax slabs and capex bazooka to a boost in affordable housing. This was the Modi 2.0 government’s final full budget before the 2024 general elections. While some may say that the Budget 2023 was populist, FM Sitharaman remained fiscally prudent. 

Union Budget 2023 Highlights

Sustained focus on infra will push steel demand:

In the 2023 Budget, capex for infrastructure development to Rs 10 lakh crore, with a capital outlay of Rs 2 lakh crore for modernising and expanding railways.

A duty hike on cigarettes to have nominal impact on prices:

A 16 percent rise in cigarette duty will raise cigarette stick costs by around 7-12 paise per stick.

According to experts, the increase in the National Calamity Contingent Duty would have little influence on smokers or companies selling cigarettes.

Significant tax changes for the middle class:

Salaried class having income up to Rs 7 lakhs under new tax regime (NTR) exempted through tax rebate from previous level of Rs 5 lakhs, resulting in a Rs 33,800 tax savings.

The basic exemption ceiling has been raised from Rs 2.50 lakh to Rs 3 lakh.

The proposed modification in tax slab rate and standard deduction under NTR will result in a tax savings of Rs 54,600 for salaried individuals earning Rs 15.5 lakh.

The tax exemption ceiling for non-government employees on leave encashment has been raised from Rs 3 lakh to Rs 5 lakh.

A tax tweak in life insurance to dent topline:

The Budget for 2023 tweaks the tax exemption for life insurance policies.

The Union Budget 2023-24 has meagre provisions for marginalised:

According to the National Platform for the Rights of the Disabled (NPRD), just a 1% increase in sector allocation has occurred; the disabled community continues to be neglected.

Allocations under the plan to implement the (Rights of) Persons with Disabilities Act have been lowered by Rs 90 crore to Rs 150 crore.

The government eliminated income requirements under the PM-JAY programme for people with disabilities.

The Indira Gandhi National Disability Pension Scheme allocations have not been increased.

Growth-oriented provisions in Union Budget 2023.

Some pro-development provisions in the Union Budget 2023-24:-

Energy transition and sustainable planning

Inclusive growth enabled by a technologically empowered economy

Boost to the EV industry

Exempting lithium-ion batteries from customs duty

Funding to bridge the viability gap for battery energy storage systems.

TDS on listed bonds might hit investor returns:

With the removal of clause (ix) from section 193 of the Income Tax Act, a 10% tax on all listed and unlisted bonds may be levied.

So, bondholders will now have to pay TDS on their returns, lowering their returns.

Sops for marine products will help the seafood industry:

The PM Matsya Sampada Yojana sub-scheme will assist the operations of fishermen, fish merchants, and micro and small companies, as well as increase value-chain efficiency and market expansion.

The duty reduction for major shrimp feed inputs would also benefit the seafood industry, as marine product exports are encountering difficulties in overseas markets due to the recession and other issues.

Why is the Union Budget for 2023 geared toward senior citizens and the salaried class?

The salaried class requested a rebate and a reduction in income-tax slabs, which were included in the Union Budget 2023. FM Sitharaman recommended increasing the rebate maximum, lowering the number of tax slabs, and enhancing the standard deduction limit.

The Finance Minister has recommended increasing the deposit limit of the Older Citizen Savings Scheme from Rs 15 lakh to Rs 30 lakh for individual accounts and Rs 60 lakh for combined accounts for the benefit of senior citizens.

One tailored for the taxpayers:

The statements on personal income taxes are part of the government’s attempt to persuade taxpaying citizens to opt for the new tax regime introduced in FY 20-21.

This regime is now the default, and the new slabs are intended to push taxpayers to choose it. The top income tax rate has also been reduced to 39%. (previously 42.74 percent).

According to Sumant Sinha, chairman and CEO of ReNew Power, this would drive green growth across industries in India.

It is also crucial to maintain the focus on infrastructure spending and increase it by 33% to Rs 10 lakh crore, and 3.3 percent of GDP.

Tax rationalisation for the average person is a big shift. It places an additional Rs 38,000 crore in the hands of the average man and woman, which should promote more investment and consumption/demand.

Stepping up capex in Budget will boost logistics, connectivity across country:

The International Road Federation (IRF) has welcomed the increased capital expenditure allocation of Rs 10 lakh crore in the Union Budget, saying it will assist strengthen logistics and connectivity across the country.

Large outlays for Indian Railways, but not enough:

This year is no exception, with only a one-line statement of a capital outlay of Rs 2.40 lakh crore allocated to Indian Railways, the highest-ever, at around nine times the FY2014 figure.

The emphasis is on improving productivity and efficiency through quality spending:

In Budget 2023–24, the finance minister has taken a realistic pro-growth stance, laying the groundwork for India’s transformation from the fifth biggest global economy to the third largest by the end of this decade.

FM Sitharaman launched a new modest savings plan for women investors in Budget 2023 called the Mahila Samman Saving Certificate (MSSC):

Deposits can be made in the name of a woman or a female child under the plan. Investors can deposit up to Rs 2 lakh for a two-year term at a fixed rate of 7.5 percent with the option of partial withdrawal. However, there are no tax advantages. This plan is not the same as the Sukanya Samriddhi Yojana.

Irish Samachar English News

Kindly click the link below to join WhatsApp group chat to get important news and breaking news from Irish Samachar.

https://chat.whatsapp.com/Fu8SMGbQ7Q1CUhYg4i31Qb

Comments are closed.