Seven priorities of the budget
- Inclusive development
- Reaching the last mile
- Infra & investment
- Unleashing the potential
- Green growth
- Youth power
- Financial sector
- FY-2024 fiscal deficit target at 5.9% of GDP.
- Outlay for capital spending increased 33% to 10 trillion rupees in 2023/24.
- Cigarettes to get costlier as Budget proposes 16% hike in duty.
- To set up agriculture accelerator fund.
- Increases budget allocations to 790 bln rupees for affordable housing in 2023/24.
Revised tax slabs under new tax regime
- Under new tax regime, income of Rs 0-3 lakh is nil.
- Income above Rs 3 lakh and up to Rs 5 lakh to be taxed at 5% under new regime.
- Income of above Rs 6 lakh and up to Rs 9 lakh to be taxed at 10% under new regime.
- Income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20% under new regime.
- Income above Rs 15 lakh to be taxed at Rs 30%.
Direct Taxes
Processed more than 6.54 cr Returns this year on the tax portal, average processing period of 93 days in FY13-14 reduced to 16 days now; 45% Returns processed within 24 hours
Cigarettes
National calamity contingent duty increased by 16% on specified cigarettes. Cigarettes will get more expensive, says FM
Income tax rate
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%.
Custom duty
– 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 last fiscal year.
– Relief in custom duty on import of certain parts of mobile phones like camera lens and batteries by another year.
Digilocker
– FM Nirmala Sitharaman has announced the expansion of the Government digital certificate depository Digilocker services for the fintech sector.
– “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.
– The Centre will borrow Rs 15.43 lakh crore via bonds in 2023-24 on a gross basis – a new all-time high.
– In net terms, the borrowing programme has been fixed at Rs 11.8 lakh crore. These numbers are broadly in line with market expectations of Rs 15.5 lakh crore and Rs 11.7 lakh crore, respectively.
DBT scheme for youths
To provide support to 47 lakh youths in 3 years, a Direct Benefit Transfer under a pan India national apprenticeship scheme will be rolled out: FM Sitharaman
