Kanika Saraf
Union Finance Minister Nirmala Sitharaman repeatedly referred to the term ‘Amrit Kaal’ while presenting the Union Budget 2022 on Tuesday, 1 February 2023.
We are marking Azadi ka Amrit Mahotsav and have entered into Amrit Kaal, the 25-year-long leadup to India@100,” Sitharaman said.
“Starting from here, the journey of the next 25 years is the Amrit Kaal of a new India. The fulfilment of our resolutions in this Amrit Kaal will take us till 100 years of independence,” stated by Prime Minister Shri Narendra Modi.
Vision of Amrit Kaal- an empowered and inclusive economy
Vision for the Amrit Kaal includes technology-driven and knowledge-based economy with strong public finances, and a robust financial sector. To achieve this, Jan Bhagidari through Sabka Saath Sabka Prayas is essential
To service the focus areas in the journey to India@100, four opportunities can be transformative during Amrit Kaal which are:
1. Economic Empowerment of Women: Deendayal Antyodaya Yojana National Rural Livelihood Mission has achieved remarkable success by mobilizing rural women into 81 lakh Self Help Groups. Through supporting policies, they will be enabled to scale up their operations to serve the large consumer markets, as has been the case with several start-ups growing into ‘Unicorns’.
2. PM VIshwakarma KAushal Samman (PM VIKAS): Conceptualization of assistance to traditional artisans and craftspeople is a big move towards encouraging spirit of Atmanirbhar Bharat. The components of the scheme will include not only financial support but also access to advanced skill training, knowledge of modern digital techniques and efficient green technologies, brand promotion, linkage with local and global markets, digital payments, and social security
3. Tourism
4. Green Growth: Implementation of various programmes for green fuel, green energy, green farming, green mobility, green buildings, and green equipment and policies for efficient use of energy across various economic sectors. These green growth efforts help in reducing carbon intensity of the economy and provides for largescale green job opportunities.
The Budget adopts seven priorities. They complement each other and act as the ‘Saptarishi’ guiding us through the Amrit Kaal:
1) Inclusive Development
2) Reaching the Last Mile
3) Infrastructure and Investment
4) Unleashing the Potential
5) Green Growth
6) Youth Power
7) Financial Sector
KEY HIGHLIGHTS
- Launch of an Atmanirbhar Clean Plant Program to boost availability of disease-free, quality planting material for high value horticultural crops at an outlay of INR 2,200 crore.
- In order to make India a global hub for ‘Shree Anna’, the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence for sharing best practices, research and technologies at the international level.
- The agriculture credit target will be increased to INR 20 lakh crore with focus on animal husbandry, dairy and fisheries
- Launch of a new sub-scheme of PM Matsya Sampada Yojana with targeted investment of INR 6,000 crore to further enable activities of fishermen, fish vendors, and micro & small enterprises, improve value chain efficiencies, and expand the market.
- One hundred and fifty-seven new nursing colleges will be established in co-location with the existing 157 medical colleges established since 2014.
- Teachers’ training will be re-envisioned through innovative pedagogy, curriculum transaction, continuous professional development, dipstick surveys, and ICT implementation. The District Institutes of Education and Training will be developed as vibrant institutes of excellence for this purpose.
- Set up of National Digital Library for Children and Adolescents
- An amount of INR 15,000 crore will be made available to implement the Mission in the next three years under the Development Action Plan for the Scheduled Tribes.
- In the next three years, centre will recruit 38,800 teachers and support staff for the 740 Eklavya Model Residential Schools, serving 3.5 lakh tribal students.
- The outlay for PM Awas Yojana is being enhanced by 66 per cent to over INR 79,000 crore.
- Capital investment outlay, as driver of growth and jobs, is being increased steeply for the third year in a row by 33 per cent to INR 10 lakh crore, which would be 3.3 per cent of GDP.
- The direct capital investment by the Centre is complemented by the provision made for creation of capital assets through Grants-in-Aid to States. The ‘Effective Capital Expenditure’ of the Centre is budgeted at INR 13.7 lakh crore, which will be 4.5 per cent of GDP.
- Continuation of the 50-year interest free loan to state governments for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions, with a significantly enhanced outlay of INR 1.3 lakh crore.
- A capital outlay of INR 2.40 lakh crore has been provided for the Railways. This highest ever outlay is about 9 times the outlay made in 2013- 14.
- Fifty additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity.
- For enhancing ease of doing business, more than 39,000 compliances have been reduced and more than 3,400 legal provisions have been decriminalized. For furthering the trust based governance, we have introduced the Jan Vishwas Bill to amend 42 Central Acts. This Budget proposes a series of measures to unleash the potential of our economy.
- For realizing the vision of “Make AI in India and Make AI work for India”, three centres of excellence for Artificial Intelligence will be set-up in top educational institutions.
- In cases of failure by MSMEs to execute contracts during the Covid period, 95 per cent of the forfeited amount relating to bid or performance security, will be returned to them by government and government undertakings. This will provide relief to MSMEs.
- For efficient administration of justice, Phase-3 of the E-Courts project will be launched with an outlay of ` 7,000 crore.
- Lab Grown Diamonds (LGD) is a technology-and innovation-driven emerging sector with high employment potential. These environmentfriendly diamonds which have optically and chemically the same properties as natural diamonds. To encourage indigenous production of LGD seeds and machines and to reduce import dependency, a research and development grant will be provided to one of the IITs for five years.
- The maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from INR 15 lakh to INR 30 lakh.
SUBSTANTIAL CHANGES:
DIRECT TAX
1. MSMEs are at great benefit. MSMEs are growth engines of our economy. Limit of turnover for availing the benefit of presumptive taxation has been proposed to increase from INR 2 crore and INR 50 Lakh to INR 3 crore and INR 75 Lakh respectively.
2. Higher limit of ` 3 crore for TDS on cash withdrawal is being provided to co-operative societies.
3. Benefit of carry forward of losses on change of shareholding of start-ups from seven years of incorporation to ten years has been availed
4. Capping deduction from capital gains on investment in residential house under sections 54 and 54F to INR 10 crore.
5. Removing the minimum threshold of INR 10,000/- for TDS and clarification on taxability relating to online gaming provided.
6. Not treating conversion of gold into electronic gold receipt and vice versa as capital gain
7. Reducing the TDS rate from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases
8. Taxation on income from Market Linked Debentures
9. Extension of period of tax benefits to funds relocating to IFSC, GIFT City till 31.03.2025
10 Decriminalisation under section 276A of the Income Tax Act
11.Personal Income Tax:
a. Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes.
The income tax slabs under the new income tax regime will now be as follows:
| Income tax slabs under new tax regime | Income tax rates under new tax regime |
| Rs 0 to Rs 3 lakh | 0% |
| Rs 3 lakh to 6 lakh | 5% |
| Rs 6 lakh to 9 lakh | 10% |
| Rs 9 lakh to Rs 12 lakh | 15% |
| Rs 12 lakh to Rs 15 lakh | 20% |
| Above Rs 15 lakh | 30% |
The new tax regime for Individual and HUF, introduced by the Finance Act 2020, is now proposed to be the default regime.
b. Reduction of the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime. This would result in reduction of the maximum tax rate to 39 per cent.
c. The limit of INR 3 lakh for tax exemption on leave encashment on retirement of non-government salaried employees was last fixed in the year 2002, when the highest basic pay in the government was INR 30,000/- pm. In line with the increase in government salaries, limit has been increased to INR 25 lakh.
INDIRECT TAX
1.To promote value addition in manufacture of televisions, It is proposed to reduce the basic customs duty on parts of open cells of TV panels to 2.5 per cent
2. To rectify inversion of duty structure and encourage manufacturing of electric kitchen chimneys, the basic customs duty on electric kitchen chimney is being increased from 7.5 per cent to 15 per cent and that on heat coils for these is proposed to be reduced from 20 per cent to 15 per cent.
3. Basic customs duty is also being reduced on acid grade fluorspar from 5 per cent to 2.5 per cent to make the domestic fluorochemicals industry competitive
4. Further, the basic customs duty on crude glycerin for use in manufacture of epicholorhydrin is proposed to be reduced from 7.5 per cent to 2.5 per cent.
5. The concessional BCD of 2.5 per cent on copper scrap is also being continued to ensure the availability of raw materials for secondary copper producers who are mainly in the MSME sector.
6. The basic customs duty rate on compounded rubber is being increased from 10 per cent to 25 per cent or INR 30/kg whichever is lower’, at par with that on natural rubber other than latex, to curb circumvention of duty.
7. National Calamity Contingent Duty (NCCD) on specified cigarettes was last revised three years ago. This is proposed to be revised upwards by about 16 per cent.
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