Union Budget 2023-24 Live: Income Tax Rebate limit increased to Rs 7 lakh from Rs 5 lakh - BusinessLine
Union Budget 2023: Strengthens to 7 pillars from 4
FM Nirmala Sitharaman has laid down the seven pillars or ‘ Saptarishi’ of Union Budget 2023
Full Budget Speech Document
Setting up AI centres
“The announcement of opening 3 AI centers in some of the top educational institutions is very timely. The gov needs to urgently supplement and support the work the private sector is doing in the AI space. China is leading us and most of the world in the AI race and we need to catch up fast.” - Cyril Amarchand Mangaldas
National Hydrogen Mission
The FM allocated Rs.19,700 crore for the National Hydrogen mission. The government also announced a target to reach the production capacity of 5 Million Metric Tonnes(MMTA) by 2030. This is in line with India’s achievement of net zero targets by 2070 also reducing India’s imports of fossil fuels. Reliance Industries, Tata Power, Adani group, L&T, BPCL, HPCL and NTPC would benefit from the green hydrogen mission -SAMCO Securities
Budget and banking sector
“Budget announcements on market borrowing and fiscal deficit (current and future guide path) are quite positive for the markets. Fiscal deficit for FY 23 estimated at 6.4% and for FY 24 at 5.9% along with a firm commitment to bring it down below 4.5% by FY 26 – speaks a lot of fiscal prudence and sanguinity of robust tax collections. FY24 Gross borrowing at 1.54 Trillion and net market Borrowing at 1.18 Trillion is also a big positive from the market perspective. Considering the we are at the end of the tightening cycle and a possible risk of soft landing or mild recession, the smaller than feared deficit and market borrowing in a likely benign rate environment should be taken very well by the markets.” RK Gurumuthy, Head-Treasury, Dhanlaxmi Bank
Deductions from capital gains on investments in residential houses
Govt proposes to cap deductions from capital gains on investments in residential houses to Rs 10 cr: FM Sitharaman.
G-Secs rally
The Government Securities market rallied, with the yield of the widely traded 7.26 per cent Government Security maturing in 2032 declining about 5 basis points and its price rising about 32 paise, due to lower projection of the fiscal deficit target at 5.9 per cent in FY24 against 6.4 per cent in FY23.
Advantage aviation
“With additional 50 airports, aerodromes and helipads being planned, the total number of regional airports will increase to over 200. Put another way, that’s air connectivity for every third district in India. Commercial viability, however, will be a key monitorable” - CRISIL
February 01, 2023 12:33
Lower customs duty
“Customs duty exemption for capital goods used to manufacture lithium ion battery will further support PLI-linked investments. By 2027, India should see 15% of lithium batteries for transport vehicles supplied locally against 0% today” - CRISIL
More State loans
“Offering states a 50-year loan worth Rs 1.3 lakh crore for capex with autonomy on spending should give a fillip to state capex next fiscal. State capex has been lagging this fiscal, growing just 6% on-year in Apr-Nov compared with a 63% on-year rise in central capex. The uptick in state govt capex should support the irrigation, urban development and power sectors” - CRISIL
Capital outlay
Increase in capital outlay by 33% to 10 L cr is very encouraging. The cascading effect of infra spend is well recognised and should be very welcome. On the procedural part of Ease of doing business, the initiatives re KYC simplification and broadbasing of storage of documents on Digilocker will be very helpful.
February 01, 2023 12:31
More disposable income
Tax exemptions under the new tax regime will provide increased disposable income in the hand of salaried consumer which will help boost demand of small and large home appliances thus benefiting Havells, Bajaj Electricals, V-Guard
February 01, 2023 12:31
Tax exemption
Tax exemptions under the new tax regime will provide increased disposable income in the hand of salaried consumer which will help boost demand of small and large home appliances thus benefitting Havells, Bajaj Electricals, V-Guard, etc.
More for Capex and MSMES: why it’s positive
“Increase in capital outlay by 33% to 10 lakh crore is very encouraging. The cascading effect of infra spend is well recognised and should be very welcome. On the procedural part of ease of doing business, the initiatives regarding KYC simplification and broadbasing of storage of documents on Digilocker will be very helpful. MSMEs and professionals entitled to presumptive tax will now have higher eligibility limits (Rs 3 crore vs Rs 2 crore, and Rs 75 lakhs vs Rs 50 lakhs, respectively). Also, payments to MSME will be deductible for businesses only on payment basis, rather than accrual basis; whilst a good move from an MSME standpoint, it will enhance compliance burden on businesses” Ketan Dalal, MD, Katalyst Advsiors
February 01, 2023 12:30
Grievance redressal for direct tax payers
Govt to enhance grievance redressal mechanism for direct tax payers:
February 01, 2023 12:30
Income tax relief
Increase in tax exemption limit with consequent more disposable income for Indian tax payers in Union Budget 2023-24 is a positive development for domestic automobile space and shall spur growth for domestic passenger vehicle industry. Positive for Maruti Suzuki, M&M and Tata Motors in our coverage universe. It is also positive for premium motorcycle segment with Eicher Motors as key beneficiary with popular Royal Enfield franchise.
February 01, 2023 12:30
Income Tax
Nirmala Sitharaman as she proposes to increases tax exemption limit to Rs 3 lakh
New saving scheme for women, hiked limit for senior citizen deposit and Monthly investment scheme (MIS).
To benefit banking industry as it will enable better liabilities accretion.
On BudgetFY24
“The first union budget of Amrit Kaal reflects a demand side and supply side focus on key technology such as AI, Robotics and Drones. This includes inclusion of key imperatives such as inclusion and unleashing potential, and creating capability, through centres of excellence in AI, and a skill India platform.
Data embassies under the IFSC framework promise to be an innovative and exciting new avenue of growth for the emerging data centre economy in India.” - Arun Prabhu, Partner & Head – TMT; Cyril Amarchand Mangaldas
Carry forward of losses
Carry forward of losses on divestment including IDBI Bank sale will further sweeten the deal for potential bidders. Move positive for ongoing sale
Minimum Threshold
To remove the minimum threshold of Rs 10,000 on TDS.
February 01, 2023 12:27
Income Tax
New income tax regime as default tax regime.
February 01, 2023 12:27
Income Tax
Reduce highest surcharge rate on income tax to be reduced from 37% to 25%
February 01, 2023 12:26
Income Tax
The new tax slabs
Rs 0-3 lakh - nil;
Rs 3-6 lakh - 5%;
Rs 6-9 lakh - 10%;
Rs 9-12 lakhs- 15%;
Rs 12-15 lakh- 20% and
Above Rs 15 lakh- 30%
Agri and EV gains
“Currently, India’s NPK ratio is 7.3:3:1 versus the widely accepted 4:2:1. The PM PRANAM scheme, which aims to reduce usage of chemical fertilisers, can help India move towards more balanced fertiliser applications. It can also help reduce imports, which stand at ~30% today. Continuing the current lower customs duty on lithium ion cells for next fiscal will help keep the cost of battery cells under check. Customs Duty exemption on capital equipment for manufacturing battery cells will encourage investments to manufacture battery cells” - CRISIL
Income Tax
In new tax salaried income will pay Rs 15.5 lakh or more will stand benefit by Rs 52,500
February 01, 2023 12:24
Income Tax
Individual annual income with Rs 9 lakh will pay income tax of about Rs 45000, 25 per cent reduction from rs 60,000
February 01, 2023 12:24
Income Tax
An individual with Annual income of Rs 9 lakh will pay Rs 45,000 only now
Watch: FM Nirmala Sitharaman speaks on Artificial Intelligence
Fillip for digital payments
“The achievement of Rs 126 lakh crores of digital payments through UPI in 2022 from Rs 7400 crores is a big milestone for India. Initiatives including extension of Bharat Bill Payments System for NRIs, approval of Rs 2,600 crores incentive scheme for FY24 for RuPay debit card and UPI transactions, and growing digital payment acceptance with digital infrastructure have given a big boost to digital payments via UPI in India as well as global level. Additionally, the government is aiming to set up 100 labs for developing 5G apps. 5G technology in financial sector will ensure faster and efficient digital transactions.” Rajri Rengan, Head of Banking and Payments, India and Phillipines, FIS
February 01, 2023 12:23
Personal Income Tax
In New tax regime individuals with income upto Rs 7 lakh will not pay tax
Watch: Revamped credit guarantee scheme for MSMEs with infusion of Rs. 9,000 cr to be launched from April 1: FM
February 01, 2023 12:22
Personal Income Tax
Rebate : Income Tax Rebate limit increased to Rs 7 lakh from Rs 5 lakh
Sugar companies
Sugar companies to get relief of Rs 10,000 crore. Positive for sugar company stocks such as Shree Renuka Sugars, Dwarikesh Sugar, EID Parry, Balrampur Chini and Dhampur Sugar
Personal Income Tax
Five major proposals
Live: Mobile phone manufacturing
Govt proposes to reduce customs duty on import of certain inputs for mobile phone manufacturing
Start-ups
Extend the date of incorporation for ai come a tax by a year. Benefit of carry forward of losses in charge of ownership extended to 10
Years from sevention
Viability gap funding for battery storage capacity
Viability gap funding for battery storage capacity of 4000 mwh can engender capex of about Rs 15,000 crore. This should lead to lower tariffs for storage-linked project bids from around Rs 7-9 per unit now. - CRISIL
Customs duties on open cells cut
- Reduction on customs duty on open cells used in production of televisions to 2.5%. This is likely to drive the demand for televisions. This is likely to benefit contract manufacturers like Dixon Technologies
Lower BCD on Acids
“Government has reduced custom duty on basic Acid Base Fluorspar from 5% to 2.5% . Beneficial for fluorine chemistry players like SRF, Navin as fluorspar is raw material for many fluorine products” - ICICI Direct
Excise duty component NCCD on cigarettes increased by 16%. Negative for ITC & VST Industries - ICICI Securities
Naming millets as ‘Shri Anna’, FM announces firm steps for farm sector
Digital public infrastructure for agriculture will be built as an open source, open standard on mission mode, and an interoperable public good, Finance Minister Nirmala Sitharaman announced presenting the Budget for 2023-24. She said it will help in crop planning and facilitate easy access to inputs and credit for farmers apart from supporting agritech industry and start-ups in crop estimation and market intelligence activities.
Cut in customs duties
Government has reduced custom duty on basic Acid Base Fluorspar from 5% to 2.5% . Beneficial for fluorine chemistry players like SRF, Navin as fluorspar is raw material for many fluorine products: ISec
TV Panels
To reduce customs duty on open cells of TV panels to 2.5%
Lower latex cost
“Cutting duty on latex. This can help reduce the prices of condoms”: Market experts
Sugar Cooperatives
Sugar cooperative to claim payments to sugarcane farmers before AY 2017 as tax benefit, Benefits to be at Rs 10,000 crore
Lab-grown diamonds: IIT to gain
“The grant provided to IIT for lab-grown diamonds is a positive. The segment has seen a steep 54% growth in exports on-year, and accounted for 5% of total diamond exports YTD23” - CRISIL
Focus on tourism development will boost air travel - ICRA
Interest-free loans to states
50-year interest free loans for states for capex spend within 2023-24 to augur well for scrapping/replacement of buses- ICRA
Silver bars import duty
Propose to increase import duty on silver bars to align it with gold, platinum
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