Budget 2023-24: The Indian economy has done well this past year despite the war in Ukraine, the slowdown in China, and high inflation in western countries. Global stock markets are going through some issues, but Indian markets have reached an all-time high. The government is expected to launch Budget 2023 considering the above-mentioned issues.
The BJP will present its last budget for the financial year 2023-24 before the Lok Sabha elections. This year’s budget will play a significant role in the party’s performance in the upcoming elections. The ruling party might suffer adverse consequences if the budget doesn’t justify it to the majority.
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Budget 2023: Expected Decisions
Finance Minister, Nirmala Sitharaman will present the upcoming Budget 2023 on February 1. Here are a few expected changes that would govern next year’s financial policies;
Home Loan Reimbursement
Tax payers may now avail abatement on interest paid on home loans. The deduction can be availed under section 24 (b) of Income Tax Act. Considering the rise in the rates of properties, the deduction rate on Home Loan Interests will also be increased.
Professional vs Technical Taxes
The Tax Deducted at Source (TDS) for Fees for Technical Services (FTS) is 2%, but the Tax Deducted at Source (TDS) for Fees for Professional Services (FPS) is 10%. However, the definitions of FTS and FPS under the Income Tax Act create interpretational ambiguities. Clarifications are welcome to avoid unnecessary litigation.
Increased Standard Deduction
The government is likely to increase standard deduction charges considering the increasing expenses due to inflation. In Budget 2023, the new standard charges will be raised to 1,00,000 from 50,000. This decision might turn many into many favorable outcomes for the ruling government in the upcoming elections.
Tax Slab Upliftment
The government has defined a limit called a tax slab that provides a range of people that are supposed to pay taxes. The current tax slab is set at Rs 2.5 lakh; i.e. people with income above the figure will have to pay basic taxes. The tax slab has remained unchanged since FY 2014-15. However, in Budget 2023, the tax slab will be increased to 5 lakh in this year’s budget meeting.
Here are a few interesting facts about Budget 2023 surfacing on social media platforms:
Section 80C benefits have remained same for last 8 years. Last revision was in 2014-15 when maximum deduction was increased from Rs 1 lakh to Rs 1.5 lakh.
The limit has remained same for last 8 years.
Will Budget 2023 bring a change? My hunch is yes. pic.twitter.com/ZnUnawj9F9
— Abhishek Murarka 💹🐂 (@abhymurarka) January 18, 2023
Renewable energy is one of the most sought-after projects undertaken by India in recent years. With critical policy decisions expected from Budget 2023-24, India is projected to further grow its stature in renewable energy over the next few years.
Link: https://t.co/Dteu5zomqN pic.twitter.com/echdc3KNQX
— Trade Promotion Council of India (@TPCI_) January 18, 2023
We Promised, We Delivered..
Hon'ble PM Shri @narendramodi Ji led Govt Of India🇮🇳is Empowering our workers with the e-Shram Portal which is ensuring access of welfare policies to Unorganized workers. #ShramevJayate #Budget2023 #PromisesDelivered pic.twitter.com/RfS5z1uEo9
— Shantanu Thakur (@Shantanu_bjp) January 18, 2023
The New Parliament House is ready.
The President Draupadi Murmu will address the Joint Session from New Lok Sabha House on 31st January.
The Budget will be presented by Srimati Nirmala Sitharaman from the new Lok Sabha House on 1st February, 2023.@rashtrapatibhvn @narendramodi pic.twitter.com/cr0GGeEfAw
— Shreyas Mankame (@shreyasmankame6) January 18, 2023
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