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Budget Highlights

  • 14 Feb 2023

The highlights of budget presented by Shri Piyush Goyal are summarised below:

  1. Ours is the 6th largest economy in the world now.

  2. Rate of inflation was lowest in the Financial Year 2018-19.

  3. Fiscal Deficit is targeted at 3.4% in Financial Year 2018-19.

  4. Direct tax collection is estimated Rs. 12,00,000 cr. during Financial Year 2018-19.

  5. Anonymous scheme of online income tax scrutiny would be fully introduced within next 2 years. Under the scheme, neither the assessee would know the name of the Assessing officer nor would the assessing officer know the name of assessee whose case is being scrutinised.

  6. Rebate U/s 87A would be available fully to all assessees having income up to 5,00,000/-, considering the 80C deduction, 80E (education Loan interest), Housing loan interest etc. It is likely that one may not have to pay any tax even on the income of Rs. 10,00,000/-.

    However one should know that the above relief may not be available if the Net taxable Income exceeds Rs. 5,00,000/-. In our opinion, therefore in such cases; assessee would pay tax @5% on income between Rs. 2,50,000/- to Rs. 5,00,000/-and on the income above 5,00,000/- at the applicable rates of tax. The enhanced rebate is likely to benefit at least 3 crore tax payers.

  7. Standard deduction from salary income is raised from Rs. 40,000/- to Rs. 50,000/-.

  8. As per the present provision of Income Tax act, the 2nd self-occupied property is subject to  tax on notional value of rent.The present budget has modified the above provision to the effect that 2nd Self occupied property would not be subject to tax on notional value. However any property/properties in excess of 2 self-occupied properties would continue to be taxed on notional value.

  9. TDS limit on Bank interest is raised from Rs. 10,000/- to Rs. 40,000/-.

  10. TDS limit on Rent is raised from Rs. 1,80,000/- to Rs. 2,40,000/-.

  11. In respect of Long term capital gain on sale of Residential property following important amendments have been carried out according to which if the amount of capital gain on sale of residential property does not exceed Rs. 2 crore, the assessee has the option to purchase two residential property to claim exemption from tax instead of 1 house property.

  12. The deduction u/s 80IA in respect of specified housing scheme is extended for more 1 year i.e. up to the period ending on 31-03-2020.

 

- Shaishav D. Mehta, FCA
- (E) shaishav@sdmca.in (M) 09727595108