India's salaried class got its Budget due.
The FM in her speech announced a rebate in n income tax limit to 7 lakh in new tax regime. She also reduced the number of slabs to 5, which will be:
0-3 lakh- nil
3-6 lakh -5%
6-9 lakh - 10%
9-12 lakh-15%
12-15 lakh -20%
Above 15 lakh - 30%
For big earners, the highest effective tax rate has been reduced from 42.7 percent to 39%. The FM left LTCG unchanged, cheering the bourses.
FM Sitharaman says...
Govt to reduce customs duty on shrimp feed to promote exports: FM Sitharaman
Taxes on cigarettes hiked by 16 percent
Basic import duty on compounded rubber increased to 25 percent from 10 percent.
Basic customs duty hiked on articles made from gold bars
Customs duty on kitchen electric chimney increased to 15 percent from 7.5 percent.
Customs duty on parts of open cells of TV panels cut to 2.5 percent.
Govt proposes to reduce customs duty on import of certain inputs for mobile phone manufacturing.
No news on bank privatisation
More than an hour into the Budget 2023 speech, FM Nirmala Sitharaman has not touched up on any key banking sector reforms including the long held promise of privatisation of public sector banks. To be sure, this is no surprise. Ahead of the 2024 general elections and considering the politically sensitive nature of the move, the Government was expected to keep mum on the bank privatisation issue. However, one must remember that privatisation of at least two PSBs was a key announcement in Sitharaman’s last budget. A year later, this is nowhere discussed. Is bank privatisation totally off the agenda or is the FM keeping the big announcement to the last.
Personal finance proposals:
One-time, new savings scheme for women with a tenure of two years to offer 7.5 percent interest rate with partial withdrawal option.
For senior citizen maximum deposit limit for saving will be from 15 lakh to 30 lakh
Investment limit in small savings schemes like Senior Citizen Saving schemes (SCSS) increased to Rs 30 lakh from 15 lakh earlier.
Investment limit in Monthly income scheme (MIS) increased to Rs 9 lakh, up from rs 4.5 lakh, for single account. For joint accounts the limit has gone up to Rs 15 lakh, up from Rs 9 lakh.
Calamity cess on cigarettes :
Cigarettes get hit by a steep 16 percent increase in the calamity cess imposed on them. This will lead to an increase in cigarette prices and could hurt volume growth in the near term. ITC will get affected but so will other tobacco stocks.
Revamped credit guarantee scheme--
Good news for MSMEs
Revamped Credit guarantee scheme for MSMEs will take effect from 1 April 2023 with infusion of Rs 9000 crore into the corpus, the FM says. This will enable additional collateral free credit guarantee of Rs 2 lakh crore rupees, which will enable to lower cost of credit by 1 per cent. Good news for MSMEs that are still recovering from the impact of pandemic
FM Sitharaman on agriculture:
Millets, artisans, agri credit, micro entrepreneurs, small farmers -focus areas of the budget speech so far.
Agriculture credit target expanded to Rs 20 lakh crore.
Decentralised storage capacity will be set up that will help farmers store their produce.
The budget envisages India becoming a global hub for Sri Ann or Millets
The FM in her speech announced a rebate in n income tax limit to 7 lakh in new tax regime. She also reduced the number of slabs to 5, which will be:
0-3 lakh- nil
3-6 lakh -5%
6-9 lakh - 10%
9-12 lakh-15%
12-15 lakh -20%
Above 15 lakh - 30%
For big earners, the highest effective tax rate has been reduced from 42.7 percent to 39%. The FM left LTCG unchanged, cheering the bourses.
FM Sitharaman says...
Govt to reduce customs duty on shrimp feed to promote exports: FM Sitharaman
Taxes on cigarettes hiked by 16 percent
Basic import duty on compounded rubber increased to 25 percent from 10 percent.
Basic customs duty hiked on articles made from gold bars
Customs duty on kitchen electric chimney increased to 15 percent from 7.5 percent.
Customs duty on parts of open cells of TV panels cut to 2.5 percent.
Govt proposes to reduce customs duty on import of certain inputs for mobile phone manufacturing.
No news on bank privatisation
More than an hour into the Budget 2023 speech, FM Nirmala Sitharaman has not touched up on any key banking sector reforms including the long held promise of privatisation of public sector banks. To be sure, this is no surprise. Ahead of the 2024 general elections and considering the politically sensitive nature of the move, the Government was expected to keep mum on the bank privatisation issue. However, one must remember that privatisation of at least two PSBs was a key announcement in Sitharaman’s last budget. A year later, this is nowhere discussed. Is bank privatisation totally off the agenda or is the FM keeping the big announcement to the last.
Personal finance proposals:
One-time, new savings scheme for women with a tenure of two years to offer 7.5 percent interest rate with partial withdrawal option.
For senior citizen maximum deposit limit for saving will be from 15 lakh to 30 lakh
Investment limit in small savings schemes like Senior Citizen Saving schemes (SCSS) increased to Rs 30 lakh from 15 lakh earlier.
Investment limit in Monthly income scheme (MIS) increased to Rs 9 lakh, up from rs 4.5 lakh, for single account. For joint accounts the limit has gone up to Rs 15 lakh, up from Rs 9 lakh.
Calamity cess on cigarettes :
Cigarettes get hit by a steep 16 percent increase in the calamity cess imposed on them. This will lead to an increase in cigarette prices and could hurt volume growth in the near term. ITC will get affected but so will other tobacco stocks.
Revamped credit guarantee scheme--
Good news for MSMEs
Revamped Credit guarantee scheme for MSMEs will take effect from 1 April 2023 with infusion of Rs 9000 crore into the corpus, the FM says. This will enable additional collateral free credit guarantee of Rs 2 lakh crore rupees, which will enable to lower cost of credit by 1 per cent. Good news for MSMEs that are still recovering from the impact of pandemic
FM Sitharaman on agriculture:
Millets, artisans, agri credit, micro entrepreneurs, small farmers -focus areas of the budget speech so far.
Agriculture credit target expanded to Rs 20 lakh crore.
Decentralised storage capacity will be set up that will help farmers store their produce.
The budget envisages India becoming a global hub for Sri Ann or Millets
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