In the 75th year of our Independence, the world has recognised the Indian economy as a ‘bright star’. This budget will attempt to meet the hopes and aspirations of the common citizens. Our current year’s economic growth is estimated to be at 7 per cent. It is notable that this is the highest among all the major economies. The government has outlined seven priority areas - including development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector. Vision for the Amrit Kaal includes technology-driven and knowledge-based economy with strong public finances, and a robust financial sector.
The Key Blue Print points towards first budget of Amrit Kaal are as follows:
Standard deduction of salaried individual, and deduction from family pension is currently allowed only under the old regime. It is proposed to allow these two deductions under the new regime also.
The government has simplified the slabs in the new tax regime, which will be default. However, citizens will continue to have the option to avail the benefit of the old tax regime.
There will be no tax on income on up to ₹ 7 lakh a year - up from ₹ 5 lakh. The tax slabs will be cut to five instead of seven in the new regime. There will be no tax for income up to ₹ 3 lakh. Income between ₹ 3-6 lakh will be taxed at 5 per cent; those earning between ₹ 6 and 9 lakh will be taxed at 10 per cent, income of ₹ 9-12 lakh will be taxed at 15 per cent, for ₹ 12-15 lakh income it will be 20 per cent and those earning ₹ 15 lakh and above will be taxed at 30 per cent.
Micro enterprises &certain professionals with turnover limits of Rs. 3 crore and 75 lakh respectively, to the tax payers whose cash receipts are not more than 5 per cent can avail the benefit of presumptive taxation. Moreover, to support MSMEs in timely receipt of payments, this budget provided to allow deduction for expenditure, only when payment is actually made to MSME
New co-operatives that commence manufacturing activities till 31. 3. 2024 shall get the benefit of a lower tax rate of 15 per cent.
Deduction from capital gains on investment in residential house under sections 54 and 54F to ` 10 crore.
The Permanent Account Number (PAN) will be used as a common identifier for all digital systems of specified government agencies. The will be simplified and a one-stop update of identity will be established through Digi-locker service and Aadhaar. A system of 'Unified Filing Process' will be set-up to streamline the current process of duplication for multiple departments for ease of business.
The maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from ` 15 lakh to 30 lakh.
The maximum deposit limit for MIS Scheme will be enhanced from ` 4. 5 lakh to ` 9 lakh for single account and from 9 lakh to 15 lakh for joint account.
Conversion of gold into electronic gold receipt and vice versa shall not be taxable as capital gain
Reducing the TDS rate from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases
Leave encashment exemption limit is increased to 30 Lakhs
Reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime.
Conclusion
Summing up the whole Budget we may name it as:
SABKA SAATH SABKA VIKAS
AND SAHKAR SE SAMRIDHI
(The author is B. Com, FCA, DISA, FAFD holder and a Certified Arbitrator)
