Synopsis of Budget 2023

Budget 2023 was announced by Hon'ble Finance Minister Smt Niramala Sitharaman on February 1st 2023 at 11:00 AM IST.

The vision for Amrit Kaal Budget are

1. Opportunities for citizens with the focus on the Youth.
2.  Provide Impetus for Job Creation.
3. Boost Macro Economic Stability

Here are some of the Important Points of the Budget 2023

1. One stop KYC maintenance system: PAN to be used as common business ID For business establishments required to have Permanent Account Number (PAN), it will be used as a common identifier for all digital systems of specified government agencies.
2. Budget 2023 proposed basic customs, excise duty cuts on a range of products including mobile phone and television parts.
3. Duty cuts have been announced on toys and bicycles as well easing indirect tax regime in a push to value added manufacturing in India.
4. Government to provide relief in customs duty on import of certain parts like camera lens and concession on import of lithium ion batteries to further promote mobile phone production in India.
5.  The basic customs duty on electric kitchen chimneys is ramped up from 7.5% to 15%.
6. 6% increase in NCCD on cigarettes.

Under Direct Taxation

1.  Basic exemption limit is hiked from Rs 3 lakh to Rs 2.5 lakh
2. Income Limit for rebate of Income Tax Increased from Rs 5 lacs to Rs 7 lacs in the New Tax Regime
3.  The Slab Rates for the New Tax regime:

4. Highest Surcharge rate on Income above Rs 5 Crores is to be reduced from 37% to 25% in new regime.
5. Individuals with income of Rs 15.5 lakh and above are eligible for standard deduction of Rs 52,500 in the new tax regime. Currently, the standard deduction is Rs 50,000 in old regime and max deduction for professional tax is Rs 2,500.
6. Increase of tax exemption limit to Rs25 Lakhs on leave encashment on retirement for Non Government salaried Employees.
7. 15% Corporate Tax benefits to new Cooperatives, commencing manufacturing till 31st March 2024.
8. Benefit of carry forward of losses on change of shareholding of start ups from 7 years of incorporation to 10 years.
9. Increasing the threshold limit in 44AD is Rs 3CRS
10. The threshold limit in 44ADA is Rs 75 Lakhs.
11.  Combined Deduction of 54 and 54F is limited to Rs 10Crs
12.  Amends in 35D in amortization of Preliminary Expenses.

For more details refer to the Finance bill: Click Here