India’s finance minister presents the Union Budget, also known as the annual financial statement or annual budget, which forecasts government revenue and expenditure for the coming fiscal year. Indian Parliament receives the government’s taxing, spending, and economic goals in the budget. It also estimates GDP and inflation. Notwithstanding the pandemic, the Union Budget 2023 is expected to boost economic development.
As she presented the budget, Smt. Nirmala Sitharaman said India’s economic outlook is better than before the pandemic. The government will prioritise business and infrastructure while increasing welfare spending. Read on for the most crucial Union Budget 2023 facts.
Union Budget 2023?
According to Article 112 of the Indian Constitution, the Union Budget, also known as the annual financial statement, discloses the government’s expected income and expenditures for the coming year.
The Union Budget of India is the finance minister’s annual report on spending and policy changes.
The Union Budget tracks government budgets from April 1 to March 31. Union Budget income and capital budgets.
Funding
The government revenue budget considers both revenues and expenditures. Taxable and non-tax revenue are obtained. Revenue expenditures cover government operations and services. When government expenditure exceeds tax and other receipts, a revenue deficit results.
Capital Budget
Capital Budgets include government spending and infrastructure funding. Public, government, and Reserve Bank of India loans provide most of the government’s capital (RBI). Capital expenditure involves investment in long-term assets including buildings, machinery, and infrastructure. Fiscal deficits occur when government spending surpasses receipts.
Saptrishi Budget 2023 Priorities
1.inclusive development
2. Greening
3. Improving finance
4. Last-mile connection
5. Investment
6. Unlocking young potential
7. Young employment aspirations
Budget 2023 Highlights
The Budget 2023–2024 prioritises infrastructure and healthcare. It aids farmers and small businesses. The budget proposes private citizen tax breaks and foreign investment tactics.
1. Startup tax holiday
Startups in India obtain a three-year “tax holiday” after founding. Before March 31, 2023, this tax holiday benefit was available to startups.
Implication:
The Budget 2023 extended this deadline by one year, allowing startups founded before March 31, 2024, to benefit from the tax vacation! Set off and carry losses
Entrepreneurs could carry forward and write off losses within seven years of incorporation until recently. Ten years since formation under the new Budget.
Implication:
Startups can “carry forward and set off losses” to offset losses from any source and carry them over to future fiscal years.
Losses can offset taxable revenue, lowering the company’s tax bill.
2. IT data access
Budget 2023 stressed data accessibility to accelerate IT innovation.
The Budget 2023 National Data Governance Policy will create a large Indian dataset repository.
The academic and entrepreneurial community will have access to public or private data to foster innovation.
The National Data Governance Policy promotes ownership, responsibility, and transparency in accessing non-personal data and datasets.
3. Companies
Anti-COVID-19
If COVID-19 prevented MSMEs from completing contracts, the government and government undertakings shall return 95% of the forfeited bid or security sum in Budget 2023.
This would help epidemic-affected MSMEs.
Credit guarantee reform
The collateral-free MSMEs credit guarantee scheme is also being revised. The revamped initiative will offer collateral-free guaranteed financing of up to Rs 2 lakh crore at 1%.
4. Digital India
This Budget created an Entity Digilocker for MSMEs and large enterprises, previously only available to retail customers. The budget also funded electronic payments and digital public infrastructure. Digital payments were expected to rise 76% in 2023.
5. Agriculture
Budget 2023 emphasized technology in agriculture.
The new digital public infrastructure will assist agri-tech and related companies.
“Comprehensive, farmer-centric solutions for crop planning, credit, insurance, crop estimates, and market intelligence” will ensue.
A rural agricultural accelerator fund will be created. Farmers would receive Rs. 2.37 lakh crore in direct payments for wheat and rice. The government would promote “Chemical-free Natural farming” within 5 km of the Ganges. NABARD would integrate financing agricultural and rural company startups. “Kisan Drones” will inspect crops, digitize land records, and distribute nutrients and insecticides.
6. Taxes
Taxes Every year, the tax policy adjustments are the most anticipated part of the budget. This year, the finance minister revealed some intriguing revisions!
Micro, small, and medium-sized enterprises (MSMEs) with a turnover of up to Rs 3 crore and professionals with a revenue of up to Rs 75 lakh and cash receipts of less than 5% will benefit from “presumptive taxes” under Budget 2023.
A taxpayer without financial documents is presumed taxed. This helps small taxpayers with bookkeeping.
2023–24 TDS Rate Chart
The TDS rate on taxable EPF withdrawals has dropped from 30% to 20%. TDS no longer requires 10,000 rupees.
7. Income Tax
Budget 2023 focused on changing the income tax refund ceiling.
Taxes were exempt for those earning less Rs 5 lakhs. Rs. 7 lakhs have been added.
Tax returns now default to the new tax regime.
The year 2023–2024 tax slab.