Union Budget 2023-2024: Key Features
Union Budget 2023-2024 on National Data Governance Policy
National Data Governance Policy is also set up for research and innovation by academics and startups.
Aadhar card is being set up as the foundation identity by Digi locker to update the address as well as the identity of individuals in one step.
A common identification for all digital systems is set to be a PAN card for only specified government services for ease of business.
95% of the Mount related to bid as well as performance security will be returned by the government to MSMEs in case they fail to complete any agreement during the covid-19 period.
Union Budget 2023-2024 on Pradhan Mantri PVTG Development Mission
A budget of 15,000 crores has been decided for the implementation of the Pradhan Mantri PVTG Development Mission. This program's implementation must be completed within the next 3 years. This program will be implemented under the development action plan(for scheduled tribes).
Investment of 15,000 crores, as well as 75,000 crores from private sources, will be done. The main aim of this investment is to initiate hundred transportation projects to improve and increase the connectivity between ports, Steel, coal, fertilisers, grain sectors, etc.
Union Budget 2023-2024 on Digital public infrastructure (agriculture).
A digital public infrastructure is to be built as an open source so that it can be interoperated for public goods. It is mainly beneficial for farmers for centric solutions. It supports the growth and development of startups, agriculture, and technology.
An initiation of compensation from primary agricultural credit societies of 63,000 is done with a total investment of ₹2516 crores.
A massive storage capacity is also decided to be set up so the farmers can store their crops and produce. This is done to realise prices at different but appropriate times better.
Union Budget 2023-2024 on PM Matsya Sampada Yojana(sub scheme)
A sub-scheme of PM Matsya Sampada Yojana has decided to be launched with an investment of a target of 6,000 crores. It is further decided to enable developed activities by fish vendors, fisherman activities, small enterprises, etc. It also aims to expand the market as well as the efficiency of food value chains.
Union Budget 2023-2024 on home loan deduction limit.
According to section 24 (b) of the Income Tax Act, taxpayers can get deductions on home loans and interest paid on these loans. In addition, these homes loans deductions can only be availed for ₹ 2 lacks per annum. Due to an increase in the prices of properties in the past few years, there is a high chance that deduction limits on the home loan will also increase.
Union Budget 2023-2024 on social schemes and infrastructure spending.
Due to the increase in spending on infrastructure as well as social schemes, it might also be included in the budget for this year. Main big infrastructure projects are expected to take place in the coming years. This is also one of the main goals of the 2024 general elections. The Government of India is also likely to increase the funds for welfare schemes, social infrastructure, and infrastructure projects.
Union Budget 2023-2024 on Lower fiscal deficit.
The Goldman Sachs Group stated that the fiscal deficit target of India might get lowered by 50 basis points. This scenario is possible for the next financial year, which starts on 1 April 2023. Goldman economists such as Santanu Sengupta as well as Andrew Tilton also wrote that India's deficit would be kept at 5.9% of GDP at the beginning of the new fiscal year. The Government of India will also increase welfare and maintain capital expenditure subsequently.
Union Budget 2023-2024 on Standard Deduction Limit.
The Government of India is also likely to increase the standard deduction limit. It might be doubled from 50,000 to 1,00,000. Some experts also state that the boundary of the standard deduction is being supplemented or doubled due to an increase in the cost of living as well as an increase in inflation.
Union Budget 2023-2024 on New Tax Regime and tax slab.
FM Sitharaman makes the latest announcements on the new tax regime. The income tax rebate has been increased from 5 lakhs to 7 lakhs. The latest and new extensions on the new text regime and tax slab are as follows:
- Below or till Rs 3 lakh - no tax
- Rs 3 lakh to Rs 6 lakh - 5% tax
- Rs 6 to 9 Lakhs - 10% tax
- Rs 9 to 12 Lakhs - 15% tax
- Rs 12 to 15 Lakhs - 20% tax
- Above 15 Lakhs - 30% tax
Union Budget 2023-2024 on Non-Direct Taxes(indirect Taxes).
Custom duty rates for agriculture on textiles and goods have been reduced from 21 to 13.
Minor changes in custom duty rates have been made on items such as bicycles, toys, automobiles, etc.
Custom duty rates have been reduced to zero for items such as the input part of the camera and its lens.
Custom duty rates have been reduced to 2.5% for items such as parts of TV panels.
Custom duty rates have been increased from 7.5% to 15% for items such as the electric chimney of the kitchen.
Duties on products made from gold or bar are increased.
Import duties on items made from the bar, silver dore is increased.
Union Budget 2023-2024 on Direct Taxes.
The surcharge rate has been reduced from 37% to 25%. The rate of personal income tax has also been reduced to 39%.
The leave encashment tax exemption for any employee during retirement has been increased to 25 lacks (for non-government salary employees).
The latest income Tax regime has been set as the default Tax regime. In addition, the older tax system is also available to citizens to avail different benefits.
A provision by Primary Agricultural Co-operative Societies (PACS) and Primary Co-operative Agriculture and Rural Development Banks (PCARDBs) has been made to increase the limit of 2 lakh rupees per member for loans and cash-in deposits.
An increased limit of 3 crore rupees during cash withdrawal of TDS will be offered to cooperative societies.
The rates of TDS have been decreased from 30% to 20% for withdrawal of EPF in cases without Pan cards.
Conversion from gold into electrical gold or vice versa would not be counted as a capital gain.