India has started new budget plan on 1st Feb 2023 Finance Minister Nirmala Sitharaman’s fifth financial budget plan 2023-24 will have sops for India’s working class and lower working class, with a difficult exercise among populism and prudence.One key declaration is probably going to be on changes to the personal expense structure.
The govt had presented the new Budget plan for 2023-24 are as follows
New slabs under new tax regimes
Rs 0-3 lakh : Nil
Rs 3-6 lakhs: 5%
Rs 6-9 lakhs: 10%
Rs 9-12 lakhs: 15%
Rs 12-15 lakhs: 20%
Govt proposes to cover derivations from capital additions on interests in private houses to Rs 10 crore
* A person with yearly pay of Rs 9 lakh should pay just Rs 45,000 in charges: FM Sitharaman
* Pay of Rs 15 lakh will bring Rs 1.5 lakh charge, down from Rs 1.87 lakh
* A Rs 50,000 standard derivation to citizens has been presented under the new system
* Installment got from Agniveer Corpus Asset by Agniveers to be absolved.
*The Government proposes to increase the income tax rebate limit from Rs.5 lakh to Rs.7 lakh in the new tax regime.
*Completely imported extravagance vehicles and EVs to cost more as govt raises custom obligation from 60% to 70% in Financial plan.
* Charge exception on leave encashment on retirement of non-government salaried workers climbed to Rs 25 lakh from Rs 3 lakh
What gets cheaper and what’s get costlier:
Cheaper
Mobile phones
TV
Lab-grown diamonds
Shrimp feed
Machinery for lithium ion batteries
Raw materials for EV industry
Costlier:
Cigarettes
Silver
Compounded rubber
Imitation Jewellery
Articles made from gold bars
Imported bicycles and toys
Imported kitchen electric chimney
Imported luxury cars and EVs
Indirect Taxes:
* 16% tax hike on certain cigarettes
* New cooperatives that commence manufacturing till March, 2024 to get lower tax rate of 15%
* Basic customs duty on crude, glycerine reduced to 2.5%.
* Import duty on silver bars hiked to align it with gold, platinum
* Extend customs duty cut on imports of parts of mobile phones by 1 year
* To promote TV manufacturing, customs duty on open cells of TV panels reduced to 2.5%
Saving schemes announcements:
* Maximum deposit limit for Senior Citizen Savings Scheme to be enhanced to Rs 30 lakh from Rs 15 lakh
* Monthly Income Scheme limit doubled to Rs 9 lakh and Rs 15 lakh for joint accounts
* One-time new saving scheme Mahila Samman Saving Certificate for women to be made available for 2 years up to 2025.
Railways gets massive boost:
* An outlay of Rs 2.4 lakh crore provided for railways in FY24.
*It’s the most elevated ever most noteworthy ever portion for Rail lines and is almost multiple times over FY14 distributions.
Fiscal position:
* Govt means to bring monetary shortage beneath 4.5% of Gross domestic product by 2025-26
* Financial deficiency focus of 6.4% held in the Modified Gauge for FY23; diminished to 5.9% for FY24
* Gross market acquiring seen at Rs 15.43 lakh crore in FY24
* Net market getting in FY24 seen at Rs 11.8 lakh crore
* FY23 net assessment receipts updated gauge remains at Rs 20.9 lakh crore
* FY23 complete use modified gauge remains at Rs 41.9 lakh crore
MSME
* Redone credit ensure for MSMEs to produce results from Apr 1, 2023 with imbuement of Rs 9,000 crore in corpus
* New credit ensure plot for MSMEs to lessen cost of credit by 1 rate point
Banking:
Govt moots corrections to Banking Guideline Act to further develop administration in banks.
