Union Budget highlights 2023

Union Budget highlights 2023

Here’s all you need to know about the budget 2023

No Income Tax till 7 lakhs:

Currently, the highest rate is 42.74% income tax under the new regime. The FM has proposed to reduce the highest surcharge from 37% to 25% in the new tax regime, max rate of 39%.

An individual with an annual income of Rs 9 lakh will be required to pay only Rs 45,000/-. This is only 5 percent of his or her income. It is a reduction of 25 percent on what he or she is required to pay now, ie, Rs 60,000/-. Similarly, an individual with an income of Rs 15 lakh would be required to pay only Rs 1.5 lakh or 10 percent of his or her income, a reduction of 20 percent from the existing liability of Rs 1,87,500/.

Personal income tax highlights:

0-3 lakh- nil

3-6 lakh -5%

6-9 lakh - 10%

9-12 lakh-15%

12-15 lakh -20%

Above 15 lakh - 30%

Custom duty updates:

Mobile phone production in India increased from 5.8 crore units valued at about Rs 18,900 crore in 2014-15 to 31 crore units valued at Rs 2,75,000 crore in the last fiscal year.

Relief in custom duty on the import of certain parts of mobile phones like camera lenses and batteries by another year.

FM on digital payments:

The Indian economy has become more formalised as witnessed by a significant enhancement in digital payments, Union finance minister Nirmala Sitharaman said during her budgetary speech in the Parliament. She commended the enhancement in bringing in digital payments over the years and noted that around 7,400 crore digital payments worth ₹126 lakh crore were made through UPI in 2022. Increase 76% in transactions 91% in value.

The investment limit of the Senior Citizen Savings Scheme increased:

Senior Citizen Savings Scheme: Maximum investment limit increased from Rs 15 lakh to Rs 30 lakh, announces FM

Digilocker updates:

Documentation availability will be the focus for the DigitLocker expansion for the fintech sector, The fintech sector has been facilitated by digital services, PM Jan Dhan Yojana, Indian Stack, and UPI,” Sitharaman said.

Centres for Excellence AI:

To make AI work for India 3 centres for excellence will be set up in top educational institutes. Lab grown diamonds, green growth 100 labs for 5G apps to be set up in engineering institutes and lab-grown diamonds production to be encouraged via a grant to an IIT.

Govt. proposes PAN as a common identifier :

The government has proposed to use Permanent Account Number(PAN) as a common identifier for all business establishments using the digital systems of various government agencies. In the Union Budget for FY23.

Over 39,000 compliances were reduced for ease of doing business:

More than 39,000 compliances have been reduced and more than 3,400 legal provisions have been de-criminalized to improve the ease of doing business, the FM said. 

FM Sitharaman on MSMEs:

The revamp schemes will take effect from 2023 through an infusion of Rs 9,000 crore in the corpus.

This will enable another collateral-free credit of Rs 2 lakh crore.

Further, the cost of credit will be reduced by around 1%.

Income Tax Returns (ITR) processing time is to be reduced from 93 days to 16 days:

We intend to roll out next-gen common IT Return forms and strengthen the grievance redressal mechanism, said FM. The average processing time for income tax returns has been reduced from 93 to 16 days, Union Finance Minister Nirmala Sitharaman said while presenting the Union Budget. She claimed 45% of ITRs are processed within 24 hours.

National Digital Library to bridge losses due to pandemic, says FM Nirmala Sitharaman:

In her speech, Finance Minister Nirmala Sitharaman announced that a national digital library for children and adolescents will be set up for providing access to quality books to children across the country. This is aimed at bridging the learning loss suffered by children during the pandemic, Sitharaman said.

FM sticks to 7% GDP growth, says India 'bright star in world's economy:

The Finance Minister sticks to the advance estimate for the current fiscal's GDP growth of 7 percent and says India is a bright star in the world economy. This is slightly higher than the 6.8 percent estimated by the Reserve Bank of India in its December 2022 monetary policy. 

FM fixes fiscal deficit for 2023-24 at 5.9%:

Finance Minister Nirmala Sitharaman fixes the fiscal deficit for 2023-24 at 5.9%. She has moved on to Part B of the budget. Fiscal deficit would be brought down to below 4.5 per cent by 2025-26, Finance Minister Nirmala Sitharaman said on Wednesday.

She also said that tax receipts for the next fiscal are budgeted at ₹ 23.3 lakh crore and states would be allowed 3.5 percent of GDP as fiscal deficit.

FM speaks on the need to empower youth:

We have formulated the National Education Policy. Now, Pradhan Mantri Kaushal Vikas Yojana 4.0 will be launched within the next three years. This scheme will cover courses like AI, robotics, AI, 3d printing, drones, and other soft skills.

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