Union Budget Highlights 2023-24: Phase 2

Union budget highlights: In this part, we will get to know about the Union Budget 2023-24 related to the Agriculture sector, Education sector,Defense sector and also related Direct and Non-Direct Taxes.

Union Budget 2023-24:Agriculture Sector:

A Fund named Agriculture Accelerator Fund is to be set up to encourage agri-startups by young entrepreneurs in rural areas.

In Budget the agricultural credit target for animal husbandry, dairy and fisheries was Rs. 20 lakh crore.

• The Budget also states a sub-scheme Yojana with a targeted investment of ₹6,000 crore to be launched to further enable activities of fishermen, fish vendors, and micro & small enterprises, improve value chain efficiencies, and expand the market. The name of this sub-scheme is PM Matsya Sampada Yojana.

• Also, there will be a source to build Digital public infrastructure for agriculture,so to do  open standard and interoperable public good to enable inclusive farmer-centric solutions and support for the growth of agri-tech industry and start-ups.

•  There will be an investment of ₹2,516 crore for the Computerisation of 63,000 Primary Agricultural Credit Societies (PACS).

• Massive decentralized storage capacity being set up to help farmers to store their produce and realize remunerative prices through sale at appropriate times.

Union Budget 2023-24: Education sector:

This financial year there is a highest allocation granted by the Ministry of Education which is about ₹1,12,898.97 crore.₹68,804.85 crore, was given to the School Education Department, and the Higher Education Department has been granted   ₹44,094.62 crore.

• There will be a development of District Institutes of Education and Training  as a vibrant institute of excellence for Teachers’ Training.

• For facilitating the availability of quality books across geographies, languages, genres and levels, and device agnostic accessibility a National Digital Library for Children and Adolescents is to be set-up.

Union Budget 2023-24: Defense Sector:

The defence budget was increased to ₹ 5.94 lakh crore for 2023-24 from last year's allocation of ₹ 5.25 lakh crore, a sum of amount has been set aside for the  purchasing new weapons, aircraft, warships and other military hardware, and the amount is ₹ 1.62 lakh crore. As per the budget documents 2023-24, an allocation of ₹ 2,70,120 crore has been made for the payment of salaries and maintenance of establishments.

PART B Of The Union Budget 2023-24

Direct tax:

•  Maintaining continuity and stability of taxation is the aim of Direct Tax proposals. It also simplifies and rationalizes various provisions to reduce the compliance burden.

• In the new tax regime, the Rebate limit of Personal Income Tax increased from Rs. 5 lakh to Rs. 7 lacks. Hence , persons having Rs. 7 lakh income, have not have to pay tax in the new tax regime.

•  In the new tax regime the tax slab has been reduced from six income slabs,to five income slabs and also given an increase in the tax exemption limit which is Rs. 3 lacks. Giving a  major relief to all tax payers.

New Tax Rates: 

Total Income(Rs)	Rate(per cent)
Up to 3,00,000	Nil
From 3,00,001 to 6,00,000	5%
From 6,00,001 to 9,00,000	10%
From 9,00,001 to 12,00,000	15%
From 12,00,001 to 15,00,000	20%
Above 15,00,000	30%

• In the new tax regime there is a  proposal set up to extend the benefit of standard deduction of Rs. 50,000 to salaried individuals, and a deduction from family pension up to Rs. 15,000.

• Highest surcharge rate to reduce from 37 per cent to 25 per cent in the new tax regime.

• Increase in the limit for tax exemption on leave encashment on retirement of non-government salaried employees to Rs. 25 lakh.

• The new income tax regime is to be made the default tax regime by the government. Although, individuals will have the option to continue to avail the benefit of the old tax regime.

• New build up cooperatives that commence manufacturing activities till 31.3.2024 is to get a lower tax rate benefit of 15 per cent, which is currently available to new manufacturing companies.

• Opportunity provided to sugar co-operative so to claim payments made to (sugarcane) farmers for the period which is prior to assessment year 2016-17 as an expenditure.

• A higher limit of Rs. 3 crore for TDS to be provided to cooperative societies on cash withdrawal.

• Deduction from capital gains on investment in residential house under sections 54 and 54F for better targeting of tax concessions and exemptions is to be capped at Rs. 10 crore. 

• Capital gain will not be treated if there is Conversion of gold into the electronic gold receipt and vice versa.

• In non-PAN cases, the TDS rate will be reduced from 30 per cent to 20 per cent on withdrawal of EPF(taxable portion). 

• Income/Money made from Market Linked Debentures to be taxed.

Indirect Taxes:

•  Other than textiles and agriculture number of basic customs duty rates on goods, reduced to 13 from 21.

• Customs duty exempted on vehicles, specified automobile parts/components, sub-systems and tyres when imported by notified testing agencies, for the purpose of testing and/ or certification, subject to conditions.

• Concessional duty on lithium-ion cells for batteries extended for another year.

• Basic customs duty was reduced to 2.5 per cent on open cells of TV panel parts.

• Increased in tax from 7.5 per cent to 15 per cent on electric kitchen chimney increased.

 • Decrease in tax from 20 per cent  to 15 per cent on heat coil for the manufacture of electric kitchen chimneys.

•  Decrease in tax from 5 per cent to 2.5 per cent on acid grade fluorspar.

• Duty reduced on key inputs of shrimp feed for domestic manufacture.

• Increased Import duty on silver dore, articles and bars.

 

• Concessional BCD of 2.5 per cent on copper scrap remains the same.

• Basic tax rate increased from 10 per cent to 25 per cent or 30 per kg whichever is lower on compounded rubber. Union budget highlights.

• There is an increase of tax on specified cigarettes revised upwards by about 16 per cent.

Written by: Yatin singla