On 01-02-2023, Finance Minister Nirmala Seetharaman presented Budget for 2023-24

Tax Proposals in thr Finance Minister speech in Budget 2023*
Indirect Taxes

  1. Customs duty on goods of textiles, toys, bicycle reduced from 21 to 13%
  2. To promote Green Mobility – basic customs duty concession for lithium ion battery
  3. To promote Electronics manufacture- relief on customs duty for camera lens and lithium battery
  4. Television – TV panels customs duty reduced
  5. Electric kitchen chimney to reduce inverted duty structure from 7.5 to 15 percent
  6. Benefit for ethanol blending program and acid program and epichlorohydrine
    7 Marine Products- to promote exports – shrimps, etc. Duty on shrimpfeed reduced
  7. Basic Customs duty reduced for seeds in manufacture for diamonds
  8. Customs duty to increase in silver bars
  9. Steel – concessional customs duty on steel and ferrous products
  10. Copper – concessional customs duty on copper
  11. Rubber – concessional customs duty on rubber
  12. Cigarettes – increased tax

Direct Taxes

  1. Common IT form and grievance redressal system
  2. MSME – avail benefit of presumptive taxation increased to 44AD to 3 crores
    Professionals u/s 44ADA – 75 lakhs
    Provided receipt in cash doesn’t exceed 5%
  3. TDS only on payment for deduction
  4. Co-operatives tax -15%
    Higher limit of 2 lakh per member for cash deposit in agricultural banks
    Higher limit of Rs. 3 crores on TDS for cooperative societies
  5. Startups
    To avail startup benefits from 31-03-2023 to 31-03-2024
  6. 100 new joint commissioners for appeal
  7. S.54 to S.54F capped at 10 crores
  8. TDS on Online gaming –
  9. TDS 30% to 20% on taxable portion of EPF
  10. Extending funds for GIFT and IFSC
  11. Personal Income Tax

Rebate for income upto 7 lakhs u/s 87A in the new tax regime

From 1st April, 2023 FY,Tax exemptions given only to those who file IT return in NEW TAX REGIME only. Exemptions up to 45 K to 65 K. Earlier up to 5 lakh no tax. Now under New tax Regime up to 7 lakh no tax from 1/04/2023.

Up to 3 Lk no tax – Earlier upto 2.5 lk only

3 to 6 lakh – 5%

6 to 9 lakh – 10%

9 to 12 lakh 15%

12 to 15 lakh – 20%

Above 15 lakh – 30%

Standard deduction for new tax regime for Rs. 15.5 lakhs or more -52,500. Reduction of highest surcharge from 37% to 25% on new income tax regime. Limit on tax exemption for leave encashment is increased from 3,00,000 to 25,00,000. New income tax regime default regime

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