Budget 2024
Budget 2024 updates 10:18 AM : The Finance Minister will present Interim Budget 2024 at 11 AM, 01.02.2024 11:00 AM: FM started her speech in Parliament 11:12 AM: FM Spoke about Empowering the Amirit Pidh, Qualtiy Teaching, Skill India Mission, PM Mudra Yojana, Stratup India, assisting youth, Grand Chest Masters, Empowerment of women entrepreneurship, 30 Crore Mudra Yojana loan given to women. 11:16 AM: FM Spoke about, Governance, development and Performance: Investments are robust, economy is doing well, people are living well, inflation is moderate. Economic Management: People centric, all forms of infrastructure are built in record time, all parts of country becoming participant, digital public infrastructure, GST enabled one market, one nation, one tax, strenghning of financial sector, ifsc & gifts are creating robust gateway, proactive inflation management. 11:19 AM: Global context: Global affairs becoming complex, new world order is emerging after covid, India successfully navigated its way while other nations are facing challenges. FM further sopke about Mission for vikasit bharat, Next 5 years will be un-precedented growth, Demography, democracy: No dirth of opportunities in India, Reform, perform and transform, Development of east, PMAY gramin will continue, 100 units free electricity, Housing for middle class, Medical colleges, setup more medical colleges, Cervical cancer vaccinataion, Maternal and child healthcare, Upgradation on angadwadi, You win platform, Mission Indradhanush, NANO DAP: After NANO Urea, Amrit kaal as kartavya kaal 26.57 Lakh Crore Total Receipts FY 2023-24, revised estimate 24-25 estimations: Total receipt: 30.80 Lakh Crore (reveue receipt) and 47.66 Lakh Crore (expenditure) New tax scheme: No tax liability for income upto Rs 7 Lakhs Presumtive taxation for business: 3 CroresPresumtive taxation for Professionals: 75 Lakhs Budget 2023 Highlights The Finance Minister, Nirmala Sitharaman, unveiled the Union Budget 2023 on 1st February 2023. Generally, the budget before general elections is always a much-anticipated one with everyone hoping for big, bold moves. But most budgets tend to fall short on the surprise factor. This year’s budget was no exception as it was mostly just a repackaging of old schemes with additional fund allocation. But salaried taxpayers were in for a surprise. They got the much needed tax break. Various tax relief measures were introduced under the new tax regime. It looks like the government wants taxpayers to switch to the new tax regime and phase out the old tax regime. All we can hope for is enough time to adopt the new regime and make the most of the old one while it lasts. The increase in duty on cigarettes, which was missing for three years, made a reappearance. Various measures were included to boost consumption in the economy, ease compliance burden, benefit MSMEs and the middle-class and simplify and streamline the tax system. Budget 2023 Highlights: Direct Tax Deemed Income- ‘Resident but Not Ordinarily Resident’ person to pay taxes on money received (in form of gift) from Residents if it is more than ₹50,000. Changes in New Tax Regime- The new tax regime is now the default tax regime. The government has taken 5 key measures to make the new tax regime more attractive. However, taxpayers have an option to choose the old tax regime. Change in new tax regime slabs for FY 2023-24 (AY 2024-25): Income Slabs Income Tax Rate Up to ₹ 3,00,000 Nil ₹3,00,000 – ₹6,00,000 5% on income which exceeds ₹3,00,000 ₹6,00,000 to ₹900,000 ₹15,000 + 10% on income more than ₹6,00,000 ₹9,00,000 to ₹12,00,000 ₹45,000 + 15% on income more than ₹9,00,000 ₹12,00,000 to ₹1500,000 ₹90,000 + 20% on income more than ₹12,00,000 Above ₹15,00,000 ₹150,000 + 30% on income more than ₹15,00,000 Tax rebate on an income of up to ₹7 lakhs has been introduced under the new tax regime. This means that taxpayers with an income of up to ₹7 lakhs will not have to pay any tax at all! Standard deduction: Salary income: ₹50,000 standard deduction under the new tax regime as well. Effectively, ₹7.5 lakhs is your tax-free income under the new regime. Family pension: Standard deduction on such pension: ₹15,000 or 1/3rd of pension, whichever is lower. Highest surcharge under the new tax regime has been reduced to 25% from 37% for people earning more than ₹5 crore. This move brings down their tax rate from 42.74% to 39%. Presumptive Taxation Limits Revised for FY 2023-24 Category Previous Limits Revised Limits Sec 44AD: For small businesses ₹2 crores ₹3 crores* Sec 44ADA: For professionals like doctors, lawyers, engineers, etc. ₹50 lakhs ₹75 lakhs* *The increase in limits is subject to a condition that the 95% of the receipts must be through online channels. Start-ups Start-ups Previous limit Revised limit Date of incorporation for income tax benefits 31.03.2023 31.03.2024 Time limit for set-off and carry forward of losses 7 years from incorporation 10 years from incorporation Only condition is that shareholders who hold at least 51% shareholding must continue to hold the shares in the year such loss is to be carried forward and set-off. Co-operative Socities Some of the proposals announced for co-operative Societies are: New manufacturing initiatives: The government has extended the benefit of concessional tax rate of 15% to new co-operatives that commence manufacturing by 31st March, 2024. Sugar co-operatives: Any expenditure that was disallowed to sugar co-operatives prior to 2016-17, can be claimed now by making an application to the Assessing Officer. Section 194N: TDS limit on cash withdrawals is increased to ₹3 crores for co-operatives societies. Cash deposit limit: Limit for cash deposits and loans by Primary Agricultural Co-operative Societies (PACS) and Primary Co-operative Agriculture and Rural Development Banks (PCARDBs) is being increased to a maximum of ₹2,00,000 per member. Agniveer Corpus Fund To promote Agnipath scheme, the following changes will take place from 1st April 2023: Contributions made by an Agniveer to the Agniveer Corpus Fund will be considered a tax deduction from their income. The Central Government’s contribution to the Agniveer Corpus Fund will be considered as income for the Agniveer which will also be eligible for deduction. Any amount received by an Agniveer or their nominee from the Agniveer Corpus Fund will be tax-free. Other Direct Tax