{"id":32299,"date":"2023-02-02T09:09:22","date_gmt":"2023-02-02T03:39:22","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=32299"},"modified":"2025-04-19T10:20:03","modified_gmt":"2025-04-19T04:50:03","slug":"explained-key-highlights-from-union-budget-2023-24-part-b","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/explained-key-highlights-from-union-budget-2023-24-part-b\/","title":{"rendered":"Key Highlights from Union Budget 2023-24 Part-B"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?\u00a0<\/strong><\/li>\n<li><strong>Key Highlights of Union Budget 2023-24<\/strong><\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h2><strong>Why in News?\u00a0\u00a0<\/strong><\/h2>\n<ul>\n<li>Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 in Parliament.<\/li>\n<li>She emphasized that <i><strong>Indian economy is on the right track, and despite a time of challenges, heading towards a bright future<\/strong><\/i>.<\/li>\n<li>In this article, announcements related to Taxation are covered in detail.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Key Highlights of Union Budget 2023-24\u00a0<\/strong><\/h2>\n<ul>\n<li><strong>\u00a0Personal Income Tax \u2013\u00a0<\/strong><\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/lh3.googleusercontent.com\/O_eH6YafK_fzemNmOsN9w6mUL-4l2ci4zFF3_bmaaSiJNNb8d3ejBMa9WU79BSdcZPCudPo4DmUO813RdpQ-D3E02jzMWeAFt3DCBKaKyVnYHH0wiNHxRIkWY7FsW63V_ZHWzOXmUScF5LnG_fjlwQ\" alt=\"\" \/><strong>\u00a0<\/strong><\/p>\n<p>Image Caption: Income Tax Relief<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>People with income of up to Rs 7 lakh per annum will not have to pay any tax, under the new tax regime.\u00a0<\/li>\n<li>The tax structure in the new personal tax regime has been changed by <strong>reducing number of slabs to five<\/strong> and increasing the tax exemption limit to Rs 3 lakh.\u00a0<\/li>\n<li>The <i><strong>highest surcharge rate in personal income tax has been reduced from 37% to 25%<\/strong><\/i> in the new tax regime for income above Rs 2 crore.\u00a0\n<ul>\n<li>This would result in maximum tax rate of personal income tax come down to 39% which was earlier 42.74%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Indirect Tax Proposals \u2013\u00a0<\/strong><\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/Bov0Z0mm9z9_pF5MDBa_UfPBMhQnL5-elbbnjDSo2-WPGjYxIfK99F52epDgVOCqIFlrZkkWoTDej6PJROrqE_YAJAngWU-8SL9wMZDUHQiwf8u9k4cBo9Vh2psx_EbPrIzbGJ4lDfwBGEmZh-ZMvA\" alt=\"\" \/><strong>\u00a0<\/strong><\/p>\n<p>Image Caption: Indirect Tax Proposals<\/p>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/PMIkXOXnqPyqA-rc7mr03msvrhjfHg382sMuTZtRJRCx0IJHIioQ0lmzx_XabDBX5jk1ILALKjuV3B9w2UzMtejs_oB7fQiGi_elBYCVSrIqqpZ7TMOPHcDGxiE58TTns59JE-SiT8MfJscuWk41Hw\" alt=\"\" \/><\/p>\n<p>Image Caption: Indirect Tax Proposals<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>The indirect tax proposals announced in the budget emphasized on simplification of tax structure with fewer tax rates so as to help in reducing compliance burden and improving tax administration.<\/li>\n<li>The <i><strong>number of basic customs duty rates on goods, other than textiles and agriculture, has been reduced from 21 to 13<\/strong><\/i>.<\/li>\n<li><strong>Common IT Return Form \u2013\u00a0<\/strong>\n<ul>\n<li>The Union Budget also proposes to roll out a next-generation common IT return form for tax payer convenience.\u00a0<\/li>\n<li>It also stipulates a plan to strengthen the grievance redressal mechanism for direct taxes.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Better Targeting of Tax Concessions \u2013\u00a0<\/strong>\n<ul>\n<li>For better targeting of tax concessions and exemptions, deduction from capital gains on investment in residential house has been capped at Rs 10 crore.\u00a0<\/li>\n<li>Income tax exemption from proceeds of insurance policies with very high value will also have limit.\u00a0<\/li>\n<li>There are a number of proposals relating to rationalization and simplification of direct taxes in the Union Budget.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Proposals relating to MSMEs \u2013\u00a0<\/strong>\n<ul>\n<li>Describing Micro, Small and Medium Enterprises (MSMEs) as growth engines of our economy, the <u>Budget proposes enhanced limits for micro enterprises and certain professionals for availing the benefit of presumptive taxation<\/u>.\u00a0<\/li>\n<li>To support MSMEs in timely receipt of payments, the Budget allows deduction for expenditure incurred on payments made to them only when payment is actually made.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Cooperation \u2013\u00a0<\/strong>\n<ul>\n<li>The Budget has a slew of proposals for the cooperative sector.\u00a0<\/li>\n<li><i><strong>New cooperatives that commence manufacturing activities till 31<sup>st<\/sup> March next year shall get the benefit of a lower tax rate of 15%<\/strong><\/i>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Startups \u2013\u00a0<\/strong>\n<ul>\n<li>The Budget proposes to extend the date of incorporation for income tax benefits to start-ups from 31.03.2023 to 31.03.2024.\u00a0<\/li>\n<li>It also provides the <i><strong>benefit of carry forward of losses on change of shareholding of start-ups from 7 years of incorporation to 10 years<\/strong><\/i>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Amendments in CGST Act \u2013\u00a0<\/strong>\n<ul>\n<li>The Budget provides for amending the Central Goods and Services Tax (CGST) Act so as to raise the minimum threshold of tax amount for launching prosecution under GST from Rs 1 crore to Rs 2 crore.<\/li>\n<li>It will also decriminalize certain clauses of the Act like obstruction and preventing of any officer from discharge of his duties, deliberate tempering of evidence or failure to supply the information.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Implications of Tax Changes \u2013\u00a0<\/strong>\n<ul>\n<li>Announcing the changes in the direct and indirect taxes, the finance minister said that revenue of about Rs 38,000 crore will be foregone as a result of these proposals, while revenue of about Rs 3,000 crore will be additionally mobilized.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li>She said thus the <i><strong>total revenue foregone is about Rs 35,000 crore annually on account of these proposals<\/strong><\/i>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What is an Annual Financial Statement?<\/strong><\/h3>\n<p>Article 112 of the Constitution requires the government to present to Parliament a statement of estimated receipts and expenditure in respect of every financial year, from April 1 to March 31. This statement is called the annual financial statement.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Q2) When was the first Union Budget presented in India?<\/strong><\/h3>\n<p>The first Union Budget of India post-Independence was presented on <strong>November 26, 1947<\/strong>, just three months after India got independence from the British Empire. The nation&#8217;s first Union Budget was delivered by <strong>RK Shanmukham Chetty<\/strong>, the then finance minister.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:\u00a0<\/strong>\u00a0<a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=1895320\" target=\"_blank\" rel=\"nofollow noopener\"><u>SUMMARY OF THE UNION BUDGET 2023-24<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Union Budget is also called the Annual Financial Statement in Article 112 of the Constitution.<\/p>\n","protected":false},"author":5,"featured_media":32300,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-32299","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/32299","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=32299"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/32299\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/32300"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=32299"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=32299"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=32299"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}