On 1st February, Nirmala Sitharaman delivered her Budget 2023 speech in the parliament – Here is the full text of that speech.
Hon’bleSpeaker,
IpresenttheBudgetfor2023-24.ThisisthefirstBudgetinAmrit Kaal.
1.This Budget hopes to build on the foundation laid in the previousBudget, and the blueprint drawn for [emailprotected] We envision a prosperousand inclusive India, in which the fruits of development reach all regions andcitizens, especially our youth, women, farmers, OBCs, Scheduled Castes andScheduledTribes.
2.In the 75thyear of our Independence, the world has recognised theIndian economy as a ‘bright star’. Our current year’s economic growth isestimated to be at 7 per cent. It is notable that this is the highest among allthe major economies. Thisisin spite of the massive slowdown globallycaused by Covid-19 and a war. The Indian economy is therefore on the righttrack,anddespiteatimeof challenges,heading towardsabrightfuture.
3.Today as Indians stands with their head held high, and the worldappreciatesIndia’sachievementsand successes, wearesurethatelderswhohadfoughtforIndia’sindependence,willwithjoy,blessusourendeavorsgoingforward.
Resilienceamidstmultiplecrises
4.Our focus on wide-ranging reforms and sound policies, implementedthroughSabka Prayasresulting inJan Bhagidariand targeted support tothoseinneed,helpedusperformwellintryingtimes.India’srisingglobal
profile is because of several accomplishments: unique world class digitalpublic infrastructure, e.g., Aadhaar, Co-Win and UPI; Covid vaccination drivein unparalleled scale and speed; proactive role in frontier areas such asachieving the climate related goals, mission LiFE, and National HydrogenMission.
5.During the Covid-19 pandemic, we ensured that no one goes to bedhungry, with a scheme to supply free food grains to over 80 crore personsfor 28 months. Continuing our commitment to ensure food and nutritionalsecurity, we are implementing, from 1stJanuary 2023, a scheme to supplyfree food grain to all Antyodaya and priority households for the next oneyear,underPMGaribKalyanAnnaYojana(PMGKAY).Theentireexpenditureofabout₹2lakhcrorewillbebornebytheCentralGovernment.
G20Presidency:Steeringtheglobalagendathroughchallenges
6.In these times of global challenges, the G20 Presidency gives us aunique opportunity to strengthen India’s role in the world economic order.Withthethemeof‘VasudhaivaKutumbakam’,wearesteeringanambitious,people-centricagendatoaddressglobalchallenges,andtofacilitatesustainableeconomicdevelopment.
6.The government’s efforts since 2014 have ensured for all citizens abetter quality of living and a life of dignity. The per capita income has morethandoubledto₹1.97lakh.
7.In these nine years, the Indian economy has increased in size frombeing 10thto 5thlargest in the world. We have significantly improved ourpositionasawell-governedandinnovativecountrywithaconduciveenvironment for business as reflected in several global indices. We havemadesignificantprogressinmanySustainableDevelopmentGoals.
8.The economy has become a lot more formalised as reflected in theEPFO membership more than doubling to 27 crore, and 7,400 crore digitalpaymentsof₹126lakhcrorethroughUPI in2022.
9.Theefficientimplementationofmanyschemes,withuniversalisation of targeted benefits, has resulted in inclusive development.Someoftheschemes are:
i.11.7crorehouseholdtoiletsunderSwachhBharatMission,
ii.9.6croreLPGconnectionsunderUjjawala,
iii.220croreCovidvaccinationof102crorepersons,
iv.47.8crorePMJanDhan bankaccounts,
v.Insurancecoverfor44.6crorepersonsunderPMSurakshaBimaandPMJeevanJyotiYojana,and
vi.Cashtransferof₹2.2lakhcroretoover11.4crorefarmersunderPMKisanSammanNidhi.
10.OurvisionfortheAmritKaalincludestechnology-drivenandknowledge-basedeconomywithstrongpublicfinances,andarobustfinancial sector. To achieve this,Jan BhagidarithroughSabka Saath SabkaPrayasis essential.
11.Theeconomicagendaforachievingthisvisionfocusesonthreethings:first,facilitatingampleopportunitiesforcitizens,especiallytheyouth, to fulfil their aspirations; second, providing strong impetus to growthandjobcreation; andthird,strengthening macro-economicstability.
12.To service these focus areas in our journey to [emailprotected], we believethat the following four opportunities can be transformative during AmritKaal.
1)Economic Empowerment of Women: Deendayal Antyodaya YojanaNational Rural Livelihood Mission has achieved remarkable successby mobilizing rural women into 81 lakh Self Help Groups. We willenablethesegroupstoreachthenextstageofeconomicempowerment through formation of large producer enterprises orcollectiveswitheachhavingseveralthousandmembersandmanagedprofessionally.Theywillbehelpedwithsupplyofrawmaterials and for better design, quality, branding and marketing oftheir products. Through supporting policies, they will be enabled toscaleup their operationsto servethelargeconsumer markets, ashasbeenthecasewithseveralstart-upsgrowing into‘Unicorns’.
2)PMVIshwakarmaKAushalSamman(PMVIKAS):Forcenturies,traditionalartisansandcraftspeople,whoworkwiththeirhandsusingtools,havebroughtrenownforIndia.Theyaregenerallyreferred to as Vishwakarma. The art and handicraft created by themrepresents the true spirit of Atmanirbhar Bharat. For the first time, apackage of assistance for them has been conceptualized. The newscheme will enable them to improve the quality, scale and reach oftheir products, integrating them with the MSME value chain. Thecomponents of the scheme willinclude not only financial supportbutalsoaccesstoadvancedskilltraining,knowledgeofmoderndigitaltechniquesandefficientgreentechnologies,brandpromotion, linkage with local and global markets, digital payments,and social security. This will greatly benefit the Scheduled Castes,Scheduled Tribes, OBCs, women and people belonging to the weakersections.
3)Tourism: The country offers immense attraction for domestic as wellas foreign tourists. There is a large potential to be tapped in tourism.The sector holds huge opportunities for jobs and entrepreneurshipfor youth in particular.Promotion of tourism will be taken up onmission mode, with active participation of states, convergence ofgovernmentprogrammesandpublic-privatepartnerships.
4)Green Growth: We are implementing many programmes for greenfuel, green energy, green farming, green mobility, green buildings,and green equipment, and policies for efficient use of energy acrossvariouseconomicsectors.Thesegreengrowtheffortshelpinreducing carbon intensity of the economy and provides for large-scalegreenjobopportunities.
13.The Budget adopts the following seven priorities. They complementeachother andactasthe‘Saptarishi’guiding usthroughtheAmritKaal.
1)InclusiveDevelopment
2)ReachingtheLastMile
3)InfrastructureandInvestment
4)UnleashingthePotential
5)GreenGrowth
6)YouthPower
7)FinancialSector
14.TheGovernment’sphilosophyofSabkaSaathSabkaVikashasfacilitatedinclusivedevelopmentcoveringinspecific,farmers,women,youth,OBCs,ScheduledCastes,ScheduledTribes,divyangjanandeconomically weaker sections, and overall priority for the underprivileged(vanchiton ko variyata). There has also been a sustained focus on Jammu &Kashmir,Ladakhand theNorth-East.ThisBudgetbuildsonthoseefforts.
AgricultureandCooperation
DigitalPublicInfrastructureforAgriculture
15.Digital public infrastructure for agriculture will be built as an opensource,openstandardandinteroperablepublicgood.Thiswillenable
inclusive, farmer-centric solutions through relevant information services forcropplanningandhealth,improvedaccesstofarminputs,credit,andinsurance, help for crop estimation, market intelligence, and support forgrowthofagri-techindustry andstart-ups.
AgricultureAcceleratorFund
16.An Agriculture Accelerator Fund will be set-up to encourage agri-startupsbyyoungentrepreneursinruralareas.TheFundwillaimatbringinginnovativeandaffordablesolutionsforchallengesfacedbyfarmers. It will also bring in modern technologies to transform agriculturalpractices, increaseproductivityandprofitability.
Enhancingproductivityofcottoncrop
17.Toenhancetheproductivityofextra-longstaplecotton,wewilladoptacluster-basedandvaluechainapproachthroughPublicPrivatePartnerships (PPP). This will mean collaboration between farmers, state andindustryforinputsupplies,extensionservices,andmarketlinkages.
AtmanirbharHorticultureCleanPlantProgram
18.WewilllaunchanAtmanirbharCleanPlantProgramtoboostavailabilityofdisease-free,qualityplantingmaterialforhighvaluehorticulturalcrops atanoutlay of₹2,200crore.
GlobalHubforMillets:‘ShreeAnna’
19.“India is at the forefront of popularizing Millets, whose consumptionfurthers nutrition, food security and welfare of farmers,”said Hon’ble PrimeMinister.
20.We are the largest producer and second largest exporter of‘ShreeAnna’in the world. We grow several types of ‘Shree Anna’such asjowar,ragi, bajra, kuttu, ramdana, kangni, kutki, kodo, cheena, and sama.Thesehave a number of health benefits, and have been an integral part of ourfoodfor centuries.Iacknowledgewithpridethehugeservicedonebysmall
farmersincontributingtothehealthoffellowcitizensbygrowingthese
‘ShreeAnna’.
21.Now to make India a global hub for ‘Shree Anna’, the Indian Instituteof Millet Research, Hyderabad will be supported as the Centre of Excellencefor sharing best practices, research and technologies at the internationallevel.
AgricultureCredit
22.Theagriculturecredittargetwillbeincreasedto₹20 lakhcrorewithfocusonanimal husbandry,dairyandfisheries.
Fisheries
23.We will launch a new sub-scheme of PM Matsya Sampada Yojanawith targeted investment of₹6,000 crore to further enable activities offishermen, fish vendors, and micro & small enterprises, improve value chainefficiencies,andexpandthemarket.
Cooperation
24.Forfarmers,especiallysmallandmarginalfarmers,andothermarginalisedsections,thegovernmentispromotingcooperative-basedeconomic development model. A new Ministry of Cooperation was formedwithamandatetorealisethevisionof‘SahakarSeSamriddhi’.Torealisethis vision, the government has already initiated computerisation of 63,000Primary Agricultural Credit Societies (PACS) with an investment of₹2,516crore. In consultation with all stakeholders and states, model bye-laws forPACSwereformulatedenablingthemtobecomemultipurposePACS.Anational cooperative database is being prepared for country-wide mappingofcooperativesocieties.
25.With thisbackdrop, we willimplement a planto set up massivedecentralised storage capacity. This will help farmers store their produceandrealizeremunerativepricesthroughsaleatappropriatetimes.Thegovernmentwillalsofacilitatesettingupofalargenumberofmultipurpose
cooperativesocieties,primaryfisherysocietiesanddairycooperativesocietiesinuncoveredpanchayatsandvillages inthenext5years.
Health, Education and SkillingNursingColleges
26.Onehundredandfifty-sevennewnursingcollegeswillbeestablished in co-location with the existing 157 medical colleges establishedsince2014.
SickleCellAnaemiaEliminationMission
27.A Mission to eliminate Sickle Cell Anaemia by 2047 will be launched.It will entail awareness creation, universal screening of 7 crore people in theage group of 0-40 years in affected tribal areas, and counselling throughcollaborativeefforts ofcentralministriesandstategovernments.
MedicalResearch
28.Facilities in select ICMR Labs will be made available for research bypublic and private medical college faculty and private sector R&D teams forencouraging collaborativeresearchandinnovation.
PharmaInnovation
29.Anewprogrammetopromoteresearchandinnovationinpharmaceuticals will be taken up through centers of excellence. We shallalso encourage industry to invest in research and development in specificpriorityareas.
Multidisciplinarycoursesformedicaldevices
30.Dedicatedmultidisciplinarycoursesformedicaldeviceswillbesupported in existing institutions to ensure availability of skilled manpowerforfuturisticmedicaltechnologies,high-end manufacturingand research.
Teachers’Training
31.Teachers’trainingwillbere-envisionedthroughinnovativepedagogy,curriculumtransaction,continuousprofessionaldevelopment,dipsticksurveys,andICTimplementation.TheDistrictInstitutesofEducation and Training will be developed as vibrant institutes of excellenceforthis purpose.
NationalDigitalLibraryforChildrenandAdolescents
32.A National Digital Library for children and adolescents will be set-upfor facilitating availability of quality books across geographies, languages,genresandlevels,anddeviceagnosticaccessibility.Stateswillbeencouraged to set up physical libraries for them at panchayat and wardlevels and provide infrastructure for accessing the National Digital Libraryresources.
33.Additionally,tobuildacultureofreading,andtomakeupforpandemic-time learning loss, the National Book Trust, Children’s Book Trustandothersourceswillbeencouragedtoprovideandreplenishnon-curricular titles in regional languages and English to these physical libraries.Collaboration with NGOs that work in literacy will also be a part of thisinitiative.Toinculcatefinancialliteracy,financialsectorregulatorsandorganizationswillbeencouragedtoprovideage-appropriatereadingmaterialtotheselibraries.
Priority2:ReachingtheLastMile
34.Prime Minister Vajpayee’s government had formed the Ministry ofTribal Affairs and the Department of Development of North-Eastern Region.To provide a sharper focus to the objective of ‘reaching the last mile’, ourgovernmenthasformedtheministriesofAYUSH,Fisheries,AnimalHusbandryandDairying,SkillDevelopment,JalShaktiandCooperation.
AspirationalDistrictsandBlocksProgramme
35.Building on the success of the Aspirational Districts Programme, theGovernmenthasrecentlylaunchedtheAspirationalBlocksProgrammecovering 500 blocks for saturation of essential government services acrossmultiple domains such as health, nutrition, education, agriculture, waterresources,financialinclusion,skilldevelopment,andbasicinfrastructure.
PradhanMantriPVTGDevelopmentMission
36.To improve socio-economic conditions of the particularly vulnerabletribal groups (PVTGs), Pradhan Mantri PVTG Development Mission will belaunched.ThiswillsaturatePVTGfamiliesandhabitationswithbasicfacilitiessuchassafehousing,cleandrinkingwaterandsanitation,improvedaccesstoeducation,healthandnutrition,roadandtelecomconnectivity,andsustainablelivelihoodopportunities.Anamountof₹15,000 crore will be made available to implement the Mission in thenext three yearsunder the Development Action Plan forthe ScheduledTribes.
EklavyaModelResidentialSchools
37.Inthenextthreeyears,centrewillrecruit38,800teachersandsupport staff for the 740 Eklavya Model Residential Schools, serving 3.5 lakhtribal students.
WaterforDroughtProneRegion
38.In the drought prone central region of Karnataka, central assistanceof₹5,300crorewillbegiventoUpperBhadraProjecttoprovidesustainablemicroirrigationandfillingupofsurfacetanksfordrinkingwater.
PM AwasYojana
39.TheoutlayforPMAwasYojanaisbeingenhancedby66percenttoover₹79,000crore.
BharatSharedRepositoryofInscriptions(BharatSHRI)
40.‘Bharat Shared Repository of Inscriptions’ will be set up in a digitalepigraphy museum, with digitization of one lakh ancient inscriptions in thefirststage.
Supportforpoorprisoners
41.Forpoorpersonswhoareinprisonsandunabletoaffordthepenaltyor thebailamount, required financialsupportwill beprovided.
Priority3:Infrastructure&Investment
42.Investments in Infrastructure and productive capacity have a largemultiplier impact on growth and employment. After the subdued period ofthe pandemic, private investments are growing again. The Budget takes theleadonceagaintorampupthevirtuouscycleofinvestmentandjobcreation.
CapitalInvestmentasdriverofgrowthandjobs
43.Capital investmentoutlayisbeingincreasedsteeplyfor thethirdyear in a row by 33 per cent to₹10 lakh crore, which would be 3.3 per centofGDP.Thiswillbealmostthreetimes theoutlayin2019-20.
44.Thissubstantialincreaseinrecentyearsiscentraltothegovernment’s efforts to enhance growth potential and job creation, crowd-inprivateinvestments,andprovideacushionagainstglobalheadwinds.
EffectiveCapitalExpenditure
45.The direct capital investment by the Centre is complemented by theprovisionmadeforcreationofcapitalassetsthroughGrants-in-AidtoStates.The‘EffectiveCapitalExpenditure’oftheCentreisbudgetedat
₹13.7lakhcrore,whichwillbe4.5percentofGDP.
SupporttoStateGovernmentsforCapitalInvestment
46.I have decided to continue the 50-year interest free loan to stategovernments for one more year to spur investment in infrastructure and toincentivizethemforcomplementarypolicyactions,withasignificantlyenhancedoutlay of₹1.3lakhcrore.
EnhancingopportunitiesforprivateinvestmentinInfrastructure
47.ThenewlyestablishedInfrastructureFinanceSecretariatwillassistallstakeholdersformoreprivateinvestmentininfrastructure,includingrailways, roads, urban infrastructure and power, which are predominantlydependentonpublicresources.
HarmonizedMasterListofInfrastructure
48.The Harmonized Master List of Infrastructure will be reviewed by anexpertcommitteeforrecommendingtheclassificationandfinancingframeworksuitableforAmritKaal.
Railways
49.Acapitaloutlayof₹2.40lakhcrorehasbeenprovidedfortheRailways. This highest ever outlay is about 9 times the outlay made in 2013-14.
Logistics
50.One hundred critical transport infrastructure projects, for last andfirst mile connectivity for ports, coal, steel, fertilizer, and food grains sectorshavebeenidentified.Theywillbetakenuponprioritywithinvestmentof
₹75,000crore,including₹15,000crorefromprivatesources.
RegionalConnectivity
51.Fifty additional airports, heliports, water aerodromes and advancelandinggroundswillberevivedforimproving regionalair connectivity.
SustainableCitiesofTomorrow
52.States and cities will be encouraged to undertake urban planningreformsandactionstotransformourcitiesinto‘sustainablecitiesoftomorrow’. This means efficient use of land resources, adequate resourcesforurbaninfrastructure,transit-orienteddevelopment,enhancedavailabilityandaffordabilityofurban land,andopportunitiesforall.
MakingCitiesreadyforMunicipalBonds
53.Throughpropertytaxgovernancereformsandring-fencingusercharges on urban infrastructure, cities will be incentivized to improve theircreditworthiness formunicipalbonds.
UrbanInfrastructureDevelopmentFund
54.Like the RIDF, an Urban Infrastructure Development Fund (UIDF) willbe established through use of priority sector lending shortfall. This will bemanaged by the National Housing Bank, and will be used by public agenciesto createurbaninfrastructurein Tier2 andTier 3cities. Stateswillbeencouragedtoleverageresourcesfromthegrantsofthe15thFinanceCommission, as well as existing schemes, to adopt appropriate user chargeswhileaccessingtheUIDF.Weexpecttomakeavailable₹10,000croreperannumfor this purpose.
UrbanSanitation
55.All cities and towns will be enabled for 100 per cent mechanicaldesludgingofseptictanksandsewerstotransitionfrommanholetomachine-holemode.Enhancedfocuswillbeprovidedforscientificmanagementofdry andwetwaste.
Priority4:UnleashingthePotential
56.“Good Governance is the key to a nation’s progress. Our governmentis committed to providing a transparent and accountable administrationwhich works for the betterment and welfare of the common citizen,”saidHon’blePrimeMinister.
MissionKarmayogi
57.Under Mission Karmayogi, Centre, States and Union Territories aremakingandimplementingcapacity-buildingplansforcivilservants.Thegovernment has also launched an integrated online training platform,iGOTKarmayogi,toprovidecontinuouslearningopportunitiesforlakhsofgovernment employees to upgrade their skills and facilitate people-centricapproach.
58.Forenhancingeaseofdoingbusiness,morethan39,000complianceshavebeenreducedandmorethan3,400 legal provisions have been decriminalized. For furthering the trust-based governance, we have introduced the Jan Vishwas Bill to amend 42Central Acts. This Budget proposes a series of measures to unleash thepotential ofoureconomy.
CentresofExcellenceforArtificialIntelligence
59.For realizing the vision of“Make AI in India and Make AI work forIndia”,three centres of excellence for Artificial Intelligence will be set-up intopeducationalinstitutions.Leadingindustryplayerswillpartnerinconducting interdisciplinary research, develop cutting-edge applications andscalableproblemsolutionsintheareasofagriculture,health,andsustainable cities. This will galvanize an effective AI ecosystem and nurturequalityhumanresources inthefield.
NationalDataGovernancePolicy
60.To unleash innovation and research by start-ups and academia, aNational Data Governance Policy will be brought out. This will enable accesstoanonymizeddata.
SimplificationofKnowYourCustomer(KYC)process
61.The KYC process will be simplified adopting a ‘risk-based’ instead of‘onesizefitsall’approach.Thefinancialsectorregulatorswillalsobe
encouragedtohaveaKYCsystemfullyamenabletomeettheneedsofDigitalIndia.
Onestopsolutionforidentityandaddressupdating
62.A one stop solution for reconciliation and updating of identity andaddressofindividualsmaintainedbyvariousgovernmentagencies,regulators and regulated entities will be established using DigiLocker serviceandAadhaaras foundationalidentity.
CommonBusinessIdentifier
63.ForthebusinessestablishmentsrequiredtohaveaPermanentAccount Number (PAN), the PAN will be used as the common identifier forall digital systems of specified government agencies. This will bring ease ofdoingbusiness;anditwillbefacilitatedthroughalegalmandate.
UnifiedFilingProcess
64.For obviating the need for separate submission of same informationto different government agencies, a system of ‘Unified Filing Process’ will beset-up. Such filing of information or return in simplified forms on a commonportal,will besharedwithotheragenciesasperfiler’schoice.
VivadseVishwasI–ReliefforMSMEs
65.In cases of failure by MSMEs to execute contracts during the Covidperiod, 95 per cent of the forfeited amount relating to bid or performancesecurity,willbereturnedtothembygovernmentandgovernmentundertakings.This willproviderelieftoMSMEs.
VivadseVishwasII–SettlingContractualDisputes
66.Tosettlecontractualdisputesofgovernmentandgovernmentundertakings,whereinarbitralawardisunderchallengeinacourt,avoluntary settlement scheme with standardized terms will be introduced.Thiswillbedonebyofferinggradedsettlementtermsdependingonpendencylevelofthedispute.
StateSupportMission
67.The State Support Mission of NITI Aayog will be continued for threeyearsforourcollectiveefforts towardsnationalpriorities.
ResultBasedFinancing
68.Tobetterallocatescarceresourcesforcompetingdevelopmentneeds, thefinancingof selectschemeswill bechanged, on a pilotbasis,from‘input-based’to ‘result-based’.
E-Courts
69.Forefficientadministrationofjustice,Phase-3oftheE-Courtsprojectwillbelaunchedwithanoutlayof₹7,000crore.
FintechServices
70.Fintech services in India have been facilitated by our digital publicinfrastructureincludingAadhaar, PMJan Dhan Yojana, Video KYC, IndiaStack and UPI. To enable more Fintech innovative services, the scope ofdocumentsavailableinDigiLockerforindividualswill beexpanded.
EntityDigiLocker
71.An Entity DigiLocker will be set up for use by MSMEs, large businessand charitable trusts. This will be towards storing and sharing documentsonlinesecurely,wheneverneeded,withvariousauthorities,regulators,banksandotherbusiness entities.
5GServices
72.Onehundredlabsfordevelopingapplicationsusing5G services will be set up in engineering institutions to realise a new rangeof opportunities, business models, and employment potential. The labs willcover,amongothers,applicationssuchassmartclassrooms,precisionfarming,intelligenttransportsystems,andhealthcareapplications.
LabGrownDiamonds
73.Lab Grown Diamonds (LGD) is a technology-and innovation-drivenemergingsectorwithhighemploymentpotential.Theseenvironment-friendly diamonds which have optically and chemically the same propertiesas natural diamonds. To encourage indigenous production of LGD seeds andmachines and to reduce import dependency, a research and developmentgrantwillbeprovidedtooneoftheIITs forfiveyears.
74.To reduce the cost of production, a proposal to review the customdutyrateonLGDseedswillbeindicatedinPartBofthespeech.
Priority5:GreenGrowth
75.Hon’ble Prime Minister has given a vision for “LiFE”, or Lifestyle forEnvironment, to spur a movement of environmentally conscious lifestyle.India is moving forward firmly for the‘panchamrit’and net-zero carbonemission by 2070 to usher in green industrial and economic transition. ThisBudgetbuilds onourfocus ongreengrowth.
GreenHydrogenMission
76.The recently launched National Green Hydrogen Mission, with anoutlay of₹19,700 crores, will facilitate transition of the economy to lowcarbon intensity, reduce dependence on fossil fuel imports, and make thecountry assume technology and market leadershipin this sunrise sector.Ourtargetis to reachanannualproductionof5MMTby 2030.
EnergyTransition
77.This Budget provides₹35,000 crore for priority capital investmentstowards energy transition and net zero objectives, and energy security byMinistryofPetroleum&NaturalGas.
EnergyStorageProjects
78.To steer the economy on the sustainable development path, BatteryEnergyStorageSystemswithcapacityof4,000MWHwillbesupportedwith
ViabilityGapFunding.AdetailedframeworkforPumpedStorageProjectswillalsobeformulated.
RenewableEnergyEvacuation
79.TheInter-statetransmissionsystemforevacuationandgridintegration of 13 GW renewable energy from Ladakh will be constructedwithinvestmentof₹20,700croreincludingcentralsupportof₹8,300crore.
GreenCreditProgramme
80.For encouraging behavioural change, a Green Credit Programme willbe notified under the Environment (Protection)Act. This will incentivizeenvironmentallysustainableandresponsiveactionsbycompanies,individuals and local bodies, and help mobilize additional resources for suchactivities.
PM-PRANAM
81.“PMProgrammeforRestoration,Awareness,NourishmentandAmelioration of Mother Earth” will be launched to incentivize States andUnionTerritoriestopromotealternativefertilizersandbalanceduseofchemical fertilizers.
GOBARdhanscheme
82.500 new ‘waste to wealth’ plants under GOBARdhan (GalvanizingOrganic Bio-Agro Resources Dhan) scheme will be established for promotingcircular economy. These will include 200 compressed biogas (CBG) plants,including 75 plants in urban areas, and 300 community or cluster-basedplants at total investment of₹10,000 crore. I will refer to this in Part B. Induecourse,a5percentCBGmandatewillbeintroducedforallorganizations marketing natural and bio gas. For collection of bio-mass anddistribution ofbio-manure,appropriatefiscalsupportwill beprovided.
BhartiyaPrakritikKhetiBio-InputResourceCentres
83.Over the next 3 years, we will facilitate 1 crore farmers to adoptnatural farming. For this, 10,000 Bio-Input Resource Centres will be set-up,creatinganational-leveldistributedmicro-fertilizerandpesticidemanufacturing network.
MISHTI
84.Building on India’s success in afforestation, ‘Mangrove Initiative forShorelineHabitats&TangibleIncomes’,MISHTI,willbetakenupformangrove plantation along the coastline and on salt pan lands, whereverfeasible, through convergence between MGNREGS, CAMPA Fund and othersources.
AmritDharohar
85.Wetlands are vital ecosystems which sustain biological diversity. Inhis latest Mann Ki Baat, the Prime Minister said,“Now the total number ofRamsar sitesinour country hasincreasedto75.Whereas, before 2014,there were only 26…”Local communities have always been at the forefrontofconservationefforts.ThegovernmentwillpromotetheiruniqueconservationvaluesthroughAmritDharohar,aschemethatwillbeimplementedoverthenextthreeyearstoencourageoptimaluseofwetlands,andenhancebio-diversity,carbonstock,eco-tourismopportunitiesandincomegenerationforlocalcommunities.
CoastalShipping
86.Coastal shipping will be promoted as the energy efficient and lowercost mode of transport, both for passengers and freight, through PPP modewithviability gapfunding.
VehicleReplacement
87.Replacing old polluting vehicles is an important part of greening oureconomy.InfurtheranceofthevehiclescrappingpolicymentionedinBudget2021-22,Ihaveallocatedadequatefundstoscrapoldvehiclesof
theCentralGovernment.Stateswillalsobesupportedinreplacingoldvehiclesandambulances.
Priority6:YouthPower
88.To empowerouryouthandhelpthe‘AmritPeedhi’ realizetheirdreams,wehaveformulatedtheNationalEducationPolicy,focusedonskilling, adopted economic policies that facilitate job creation at scale, andhavesupportedbusiness opportunities.
PradhanMantriKaushalVikasYojana4.0
89.Pradhan Mantri Kaushal Vikas Yojana 4.0 will be launched to skilllakhsofyouthwithinthenextthreeyears.On-jobtraining,industrypartnership,andalignmentofcourseswithneedsofindustrywillbeemphasized.TheschemewillalsocovernewagecoursesforIndustry4.0like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and softskills.Toskillyouthforinternationalopportunities,30SkillIndiaInternational Centres willbesetupacross differentStates.
SkillIndiaDigitalPlatform
90.The digital ecosystem for skilling will be further expanded with thelaunchofaunifiedSkillIndiaDigitalplatformfor:
·enablingdemand-basedformalskilling,
·linkingwithemployersincludingMSMEs,and
·facilitatingaccesstoentrepreneurshipschemes.
NationalApprenticeshipPromotionScheme
91.To provide stipend support to 47 lakh youth in three years, DirectBenefitTransferunderapan-IndiaNationalApprenticeshipPromotionSchemewillberolledout.
Tourism
92.Withanintegratedandinnovativeapproach,atleast 50 destinations will be selected through challenge mode. In addition toaspects such as physical connectivity, virtual connectivity, tourist guides,highstandardsforfoodstreetsandtourists’security,alltherelevantaspects would be made available on an App to enhance tourist experience.Every destination would be developed as a complete package. The focus ofdevelopmentoftourismwouldbeondomesticaswellasforeigntourists.
93.Sector specific skilling and entrepreneurshipdevelopment will bedovetailed to achieve the objectives of the‘Dekho Apna Desh’ initiative.This was launched as an appeal by the Prime Minister to the middle class topreferdomestictourismoverinternationaltourism.Forintegrateddevelopmentoftheme-basedtouristcircuits,the‘SwadeshDarshanScheme’ was also launched. Under the Vibrant Villages Programme, tourisminfrastructureandamenitieswill also befacilitatedinborder villages.
UnityMall
94.States will be encouraged to set up a Unity Mall in their state capitalor most prominent tourism centre or the financial capital for promotion andsale of their own ODOPs (one district, one product), GI products and otherhandicraft products, and for providing space for such products of all otherStates.
Priority7:FinancialSector
95.Our reforms in the financial sector and innovative use of technologyhave led to financial inclusion at scale, better and faster service delivery,ease of access to credit and participation in financial markets. This Budgetproposestofurtherthesemeasures.
CreditGuaranteeforMSMEs
96.Last year, I proposed revamping of the credit guarantee scheme forMSMEs.Iamhappyto announcethattherevampedschemewilltakeeffect
from 1stApril 2023 through infusion of₹9,000 crore in the corpus. This willenableadditionalcollateral-freeguaranteedcreditof₹2lakhcrore.Further, thecostofthecreditwillbereducedby about1 percent.
NationalFinancialInformationRegistry
97.A national financial information registry will be set up to serve as thecentral repository of financial and ancillary information. This will facilitateefficientflowofcredit,promotefinancialinclusion,andfosterfinancialstability.Anewlegislativeframeworkwillgovernthiscreditpublicinfrastructure, anditwill bedesignedinconsultationwiththeRBI.
FinancialSectorRegulations
98.TomeettheneedsofAmritKaalandtofacilitateoptimumregulationinthefinancialsector,publicconsultation,asnecessaryandfeasible, will be brought to the process of regulation-making and issuingsubsidiarydirections.
99.To simplify, easeand reducecostof compliance, financial sectorregulators will be requested to carry out a comprehensive review of existingregulations.Forthis,theywillconsidersuggestionsfrompublicandregulatedentities.Timelimitstodecidetheapplicationsundervariousregulationswillalsobelaiddown.
GIFTIFSC
100.ToenhancebusinessactivitiesinGIFTIFSC,the followingmeasureswill betaken:
·Delegating powers under the SEZ Act to IFSCA to avoid dualregulation,
·SettingupasinglewindowITsystemforregistrationandapprovalfromIFSCA,SEZauthorities,GSTN,RBI,SEBIandIRDAI,
·PermittingacquisitionfinancingbyIFSCBankingUnitsofforeignbanks,
·EstablishingasubsidiaryofEXIMBankfortradere-financing,
·Amending IFSCA Act for statutory provisions for arbitration,ancillary services, and avoiding dual regulation under SEZ Act,and
·Recognizingoffshorederivativeinstrumentsasvalidcontracts.
Data Embassy
101.Forcountrieslookingfordigitalcontinuitysolutions,wewillfacilitatesettingupoftheirDataEmbassies inGIFTIFSC.
ImprovingGovernanceandInvestorProtectioninBankingSector
102.Toimprovebankgovernanceandenhanceinvestors’protection,certain amendments to the Banking Regulation Act, the Banking CompaniesActandtheReserveBank ofIndiaActareproposed.
CapacityBuildinginSecurities Market
103.To build capacity of functionaries and professionals in the securitiesmarket, SEBI will be empowered to develop, regulate, maintain and enforcenorms and standards for education in the National Institute of SecuritiesMarketsandtorecognizeawardofdegrees,diplomas andcertificates.
CentralDataProcessingCentre
104.ACentralProcessingCentrewillbesetupforfasterresponsetocompanies through centralized handling of various forms filed with fieldofficesundertheCompanies Act.
Reclaimingofsharesanddividends
105.Forinvestorstoreclaimunclaimedsharesandunpaiddividendsfrom the Investor Education and Protection Fund Authority with ease, anintegratedITportalwillbeestablished.
DigitalPayments
106.Digital payments continue to find wide acceptance. In 2022, theyshowincreaseof76percentintransactionsand 91 per cent in value. Fiscal support for this digital public infrastructurewill continuein2023-24.
AzadiKaAmritMahotsavMahilaSammanBachatPatra
107.For commemorating Azadi Ka Amrit Mahotsav, a one-time new smallsavings scheme, Mahila Samman Savings Certificate, will be made availableforatwo-yearperioduptoMarch2025.Thiswillofferdepositfacilityupto
₹2 lakh in the name of women or girls for atenor of 2 years at fixedinterestrateof7.5percentwithpartialwithdrawaloption.
SeniorCitizens
108.The maximum deposit limit for Senior Citizen Savings Scheme will beenhancedfrom₹15lakhto₹30lakh.
109.The maximum deposit limit for Monthly Income Account Schemewill be enhanced from₹4.5 lakh to₹9 lakh for single account and from₹9lakhto₹15lakhforjointaccount.
FiscalManagement
Fifty-yearinterestfreeloantoStates
110.Theentirefifty-yearloantostateshastobespentoncapitalexpenditure within 2023-24. Most of this will be at the discretion of states,butapartwillbeconditionalonstatesincreasingtheiractualcapital
expenditure.Partsoftheoutlaywillalsobelinkedto,orallocatedfor,thefollowingpurposes:
·Scrappingoldgovernmentvehicles,
·Urbanplanningreformsandactions,
·Financingreformsinurbanlocalbodiestomakethemcreditworthyformunicipal bonds,
·Housingforpolicepersonnelaboveoraspartofpolicestations,
·ConstructingUnityMalls,
·Childrenandadolescents’librariesanddigitalinfrastructure,and
·Stateshareofcapitalexpenditureofcentralschemes.
FiscalDeficitofStates
111.Stateswillbeallowed afiscaldeficitof 3.5percentof GSDPof which
0.5percentwill betiedto powersectorreforms.
RevisedEstimates2022-23
112.TheRevisedEstimateofthetotalreceiptsotherthanborrowingsis
₹24.3lakhcrore,ofwhichthenettaxreceiptsare₹20.9lakhcrore.TheRevisedEstimateofthetotalexpenditureis
₹41.9lakh crore,ofwhich thecapitalexpenditureisabout₹7.3lakh crore.
113.The Revised Estimate of the fiscal deficitis 6.4 per cent of GDP,adhering totheBudgetEstimate.
BudgetEstimates 2023-24
114.Coming to 2023-24, the total receipts other than borrowings and thetotal expenditure are estimated at₹27.2 lakh crore and₹45 lakh crorerespectively.Thenettaxreceipts areestimatedat₹23.3 lakhcrore.
115.Thefiscaldeficitisestimatedtobe5.9percentofGDP.InmyBudget Speech for 2021-22, I had announced that we plan to continue thepath of fiscal consolidation, reaching a fiscal deficit below 4.5 per cent by2025-26 with a fairly steady decline over the period. We have adhered tothispath,andIreiteratemyintentiontobringthefiscaldeficitbelow4.5percentofGDPby 2025-26.
116.To finance the fiscal deficit in 2023-24, the net market borrowingsfromdatedsecuritiesareestimatedat₹11.8lakhcrore.Thebalancefinancing is expected to come from small savings and other sources. Thegrossmarketborrowings areestimatedat₹15.4lakhcrore.
I will,now,movetoPartB.
PARTB
IndirectTaxes
117.My indirect tax proposals aim to promote exports, boost domesticmanufacturing, enhance domestic value addition, encourage green energyandmobility.
118.Asimplifiedtaxstructurewithfewertaxrates helpsinreducingcompliance burden and improving tax administration. I propose to reducethe number of basic customs duty rates on goods, other than textiles andagriculture, from 21 to 13. As a result, there are minor changes in the basiccustomduties,cessesandsurchargesonsomeitemsincludingtoys,bicycles,automobiles andnaphtha.
GreenMobility
119.To avoid cascading of taxes on blended compressed natural gas, IproposetoexemptexcisedutyonGST-paidcompressedbiogascontainedin it. To further provide impetus to green mobility, customs duty exemptionis being extended to import of capital goods and machinery required formanufactureof lithium-ion cellsforbatteriesused inelectricvehicles.
Electronics
120.As a result of various initiatives of the Government, including thePhased Manufacturing programme, mobile phone production in India hasincreased from 5.8 crore units valued at about₹18,900 crore in 2014-15 to31 crore units valued at over₹2,75,000 crore in the last financial year. Tofurther deepen domestic value addition in manufacture of mobile phones, Ipropose to provide relief in customs duty on import of certain parts andinputs like camera lens and continue the concessional duty on lithium-ioncellsforbatteries foranotheryear.
121.Similarly, to promote value addition in manufacture of televisions, Ipropose to reduce the basic customs duty on parts of open cells ofTVpanelsto2.5 percent.
Electrical
122.To rectify inversion of duty structure and encourage manufacturingof electric kitchen chimneys, the basiccustomsduty on electric kitchenchimneyisbeingincreased from 7.5 per cent to15 per cent andthatonheat coils for these is proposed to be reduced from 20 per cent to 15 percent.
ChemicalsandPetrochemicals
123.Denaturedethylalcoholisusedinchemicalindustry.I propose to exempt basic customs duty on it. This will also support theEthanolBlendingProgrammeandfacilitateourendeavourforenergytransition. Basic customs duty is also being reduced on acid grade fluorsparfrom5percentto2.5percenttomakethe domesticfluorochemicalsindustry competitive. Further, the basic customs duty on crude glycerin foruse in manufacture of epicholorhydrin is proposed to be reduced from 7.5percentto2.5percent.
Marineproducts
124.Inthelastfinancialyear,marineproductsrecordedthehighestexport growth benefitting farmers in the coastal states of the country. Tofurtherenhancetheexportcompetitivenessofmarineproducts,particularlyshrimps,dutyisbeingreducedonkeyinputsfordomesticmanufactureofshrimpfeed.
LabGrownDiamonds
125.India is a global leader in cutting and polishing of natural diamonds,contributing about three-fourths of the global turnover by value. With thedepletion in deposits of natural diamonds, the industry is moving towardsLabGrownDiamonds(LGDs)anditholdshugepromise.Toseizethis
opportunity,Iproposetoreducebasiccustomsdutyonseedsusedintheirmanufacture.
PreciousMetals
126.CustomsDutiesondoreandbarsofgoldandplatinumwereincreased earlier this fiscal. I now propose to increase the duties on articlesmade therefrom to enhance the duty differential. I also propose to increasethe import duty on silver dore, bars and articles to align them with that ongoldandplatinum.
Metals
127.Tofacilitateavailabilityofrawmaterialsforthesteelsector,exemption from Basic Customs Duty on raw materials for manufacture ofCRGOSteel,ferrousscrap andnickel cathodeisbeing continued.
128.Similarly,theconcessionalBCDof2.5percentoncopperscrapisalsobeingcontinuedtoensuretheavailabilityofrawmaterialsforsecondarycopper producers whoaremainly intheMSMEsector.
CompoundedRubber
129.Thebasiccustomsdutyrateoncompoundedrubberisbeingincreased from 10 per cent to ‘25 per cent or₹30/kg whichever is lower’, atpar with that on natural rubber other than latex, to curb circumvention ofduty.
Cigarettes
130.National Calamity Contingent Duty (NCCD) on specified cigaretteswas last revised three years ago. This is proposed to be revised upwards byabout16percent.
DirectTaxes
131.Inowcometomydirecttaxproposals.Theseproposalsaimtomaintain continuity and stability of taxation, further simplify and rationalisevariousprovisionstoreducethecomplianceburden,promotetheentrepreneurial spiritandprovidetaxrelieftocitizens.
132.IthasbeentheconstantendeavouroftheIncomeTaxDepartmentto improve Tax Payers Services by making compliance easy and smooth. Ourtaxpayers’portalreceivedamaximumof72lakhreturnsinaday;processed more than 6.5 crore returns this year; average processing periodreducedfrom93daysinfinancialyear13-14to16daysnow;and45percentofthereturnswereprocessedwithin24hours.Weintendto further improve this, roll out a next-generation Common IT Return Formfortaxpayerconvenience,andalsoplantostrengthenthegrievanceredressalmechanism.
MSMEsandProfessionals
133.MSMEs are growth engines of our economy.Micro enterprises withturnoverupto₹2croreandcertainprofessionalswithturnoverofupto
₹50 lakh can avail the benefit of presumptive taxation. I propose to provideenhanced limits of₹3 crore and₹75 lakh respectively, to the tax payerswhose cash receipts are no more than 5 per cent. Moreover, to supportMSMEs in timely receipt of payments, I propose to allow deduction forexpenditure incurred on payments made to them only when payment isactuallymade.
Cooperation
134.Cooperationisavaluetobecherished.InrealizingourPrimeMinister’s goal of“Sahkar se Samriddhi”, and his resolve to “connect thespiritofcooperationwiththespiritofAmritKaal”,inadditiontothemeasures proposed in Part A, I have a slew of proposals for the co-operativesector.
135.First, new co-operatives that commence manufacturing activities till31.3.2024 shall get the benefit of a lower tax rate of 15 per cent, as ispresentlyavailabletonewmanufacturingcompanies.
136.Secondly, I propose to provide an opportunity to sugar co-operativestoclaimpaymentsmadetosugarcanefarmersfortheperiodpriortoassessment year 2016-17 as expenditure. This is expected to provide themwithareliefofalmost₹10,000crore.
137.Thirdly, I am providing a higher limit of₹2 lakh per member for cashdeposits to and loans in cash by Primary Agricultural Co-operative Societies(PACS) and Primary Co-operative Agriculture and Rural Development Banks(PCARDBs).
138.Similarly, a higher limit of₹3 crore for TDS on cash withdrawal isbeing providedtoco-operativesocieties.
Start-Ups
139.Entrepreneurship is vital for a country’s economic development. Wehave taken a number of measures for start-ups and they have borne results.India is now the third largest ecosystem for start-ups globally, and rankssecond in innovation quality among middle-income countries. I propose toextendthedateofincorporationforincometaxbenefitstostart-upsfrom
31.03.23to31.3.24.Ifurtherproposetoprovidethebenefitofcarryforward of losseson change of shareholdingof start-upsfrom seven yearsofincorporationtotenyears.
Appeals
140.To reduce the pendency of appeals at Commissioner level, I proposeto deploy about 100 Joint Commissioners for disposal of small appeals. Weshall also be more selective in taking up cases for scrutiny of returns alreadyreceivedthis year.
Bettertargetingoftaxconcessions
141.Forbettertargetingoftaxconcessionsandexemptions,I propose to cap deduction from capital gains on investment in residentialhouse under sections54 and54F to₹10 crore. Another proposal withsimilar intent is to limit income tax exemption from proceeds of insurancepolicieswithveryhighvalue.
Rationalisation
142.Thereareanumberofproposalsrelatingtorationalisationandsimplification. Income of authorities, boards and commissions set up bystatutes of the Union or State for the purpose of housing, development ofcities, towns and villages, and regulating, or regulating and developing anactivity or matter, isproposed to be exempted from income tax. Othermajormeasures inthis directionare:
·Removingtheminimumthresholdof₹10,000/-forTDSandclarifying taxability relating toonlinegaming;
·Nottreatingconversionofgoldintoelectronicgoldreceiptandviceversaas capitalgain;
·ReducingtheTDSratefrom30percentto20percentontaxableportionofEPFwithdrawalinnon-PANcases;and
·TaxationonincomefromMarketLinkedDebentures.
Others
143.OthermajorproposalsintheFinanceBillrelatetothefollowing:
·ExtensionofperiodoftaxbenefitstofundsrelocatingtoIFSC,GIFTCitytill31.03.2025;
·Decriminalisationundersection276AoftheIncomeTaxAct;
·AllowingcarryforwardoflossesonstrategicdisinvestmentincludingthatofIDBI Bank;and
·ProvidingEEEstatustoAgniveerFund.
PersonalIncomeTax
144.Now, I come to what everyone is waiting for — personal income tax. Ihave five major announcements to make in this regard. These primarilybenefitourhard-workingmiddleclass.
145.Thefirstoneconcernsrebate.Currently,thosewithincomeupto
₹5 lakh do not pay any income tax in both old and new tax regimes. Ipropose to increase the rebate limit to₹7 lakh in the new tax regime. Thus,persons in the new tax regime, with income up to₹7 lakh will not have topayany tax.
146.Thesecondproposalrelatestomiddle-classindividuals.I had introduced, in the year 2020, the newpersonal income tax regimewith six income slabs starting from₹2.5 lakh. I propose to change the taxstructureinthisregimebyreducingthenumberofslabstofiveandincreasingthetaxexemptionlimitto₹3 lakh.Thenewtaxratesare:
| ₹0-3 lakh | Nil |
| ₹3-6 lakh | 5per cent |
| ₹6-9 lakh | 10percent |
| ₹9-12lakh | 15percent |
| ₹12-15lakh | 20percent |
| Above₹15 lakh | 30percent |
147.This will provide major relief to all tax payers in the new regime. Anindividualwithanannualincomeof₹9lakhwillberequiredtopayonly
₹45,000/-. This is only 5 per cent of his or her income. It is a reduction of 25per cent on what he or she is required to pay now, ie,₹60,000/-. Similarly,anindividualwithanincomeof₹15lakhwouldberequiredtopayonly
₹1.5 lakh or 10 per cent of his or her income, a reduction of 20 per centfromtheexistingliabilityof₹1,87,500/.
148.Mythirdproposalisforthesalariedclassandthepensionersincludingfamilypensioners,forwhomIproposetoextendthebenefitof
standard deduction to the new tax regime. Each salaried person with anincomeof₹15.5lakhormorewillthus standto benefitby₹52,500.
149.My fourth announcement in personal income tax is regarding thehighest tax rate which in our country is 42.74 per cent. This is among thehighest in the world. I propose to reduce the highest surcharge rate from 37per cent to 25 per cent in the new tax regime. This would result in reductionofthemaximumtax rateto39percent.
150.Lastly,thelimitof₹3lakhfortaxexemptiononleaveencashmenton retirement of non-government salaried employees was last fixed in theyear 2002, when the highest basic pay in the government was₹30,000/-pm. In line with the increase in government salaries, I am proposing toincreasethislimitto₹25lakh.
151.We are also making the new income tax regime as the default taxregime.However,citizenswillcontinuetohavetheoptiontoavailthebenefitoftheoldtax regime.
152.Apart from these, I am also making some other changes as given intheannexure.
153.Asaresultoftheseproposals,revenueofabout₹38,000crore–
₹37,000 crore in direct taxes and₹1,000 crore in indirect taxes – will beforgone while revenue of about₹3,000 crore will be additionally mobilized.Thus,thetotalrevenueforgoneisabout₹35,000 croreannually.
154.Mr. Speaker Sir, with these words, I commend the Budget to thisaugustHouse.
*****
AnnexuretoPartBoftheBudgetSpeech2023-24AmendmentsrelatingtoDirectTaxes
A.PROVIDINGTAXRELIEFUNDERNEW PERSONALTAXREGIME
A.1The new tax regime for Individual and HUF, introduced by theFinanceAct2020, isnowproposedto bethedefaultregime.
A.2This regime would also become the default regime for AOP (otherthanco-operative),BOI andAJP.
A.3Any individual, HUF, AOP (other than co-operative), BOI or AJP notwilling to be taxed under this new regime can opt to be taxedunder the old regime. For those person having income under thehead “profit and gains of business or profession” and having optedfor old regimecanrevokethatoption onlyonceand after thattheywillcontinuetobetaxedunderthenewregime.Forthosenot having income under the head “profit and gains of business orprofession”,optionfor oldregimemaybeexercisedineachyear.
A.4Substantial relief is proposed under the new regime with new slabsandtax rates as under:
| TotalIncome(₹) | Rate(percent) |
| Upto3,00,000 | Nil |
| From3,00,001to 6,00,000 | 5 |
| From6,00,001to 9,00,000 | 10 |
| From9,00,001to 12,00,000 | 15 |
| From12,00,001to15,00,000 | 20 |
| Above15,00,000 | 30 |
A.5Resident individual with total income up to₹5,00,000 do not payanytaxduetorebateunderbotholdandnewregime.Itisproposed to increase the rebate for the resident individual underthe new regime so that they do not pay tax if their total income isupto₹7,00,000.
A.6Standarddeductionof₹50,000tosalariedindividual,and
| deduction from family pension up to₹15,000, is currently allowedonlyundertheoldregime.Itisproposedtoallowthesetwodeductionsunderthenewregimealso.A.7Surcharge on income-tax under both old regime and new regime is10 per cent if income is above₹50 lakh and up to₹1 crore, 15 percent if income is above₹1 crore and up to₹2 crore, 25 per cent ifincome is above₹2 crore and up to₹5 crore, and 37 per cent ifincomeisabove₹5crore.Itisproposedthattheforthoseindividuals,HUF,AOP(otherthanco-operative),BOIandAJPunder the new regime, surcharge would be same except that thesurcharge rateof37 per cent will not apply. Highest surchargeshallbe25percentforincomeabove₹2 crore. This would reduce the maximum rate from about 42.7per cent to about 39 per cent. No change in surcharge is proposedforthosewhoopttobeundertheoldregime.A.8Encashment of earned leave up to 10 months of average salary, atthe time of retirementin case of an employee (other than anemployee of the Central Government or StateGovernment), isexempt under sub-clause (ii) of clause (10AA) of section 10 of theIncome-tax Act (“the Act”) to the extent notified. The maximumamountwhichcanbeexemptedis₹3lakhatpresent.Itisproposedto issuenotificationtoextendthislimitto₹25lakh. |
| B.SOCIO-ECONOMICWELFAREMEASURES |
| B.1PromotingtimelypaymentstoMicroandSmallEnterprisesInordertopromotetimelypaymentstomicroandsmallenterprises,itisproposedtoincludepaymentsmadetosuchenterpriseswithintheambitofsection43BoftheAct.Thus,deduction for such payments would be allowed only when actuallypaid. It will be allowed on accrual basis only if the payment iswithin the time mandated under the Micro, Small and MediumEnterprisesDevelopmentAct.B.2AgnipathScheme,2022ThepaymentreceivedfromtheAgniveerCorpusFundbytheAgniveers enrolled in Agnipath Scheme, 2022 is proposed to beexemptfromtaxes.DeductioninthecomputationoftotalincomeisproposedtobeallowedtotheAgniveeronthecontribution |
madebyhimortheCentralGovernmenttohisSevaNidhiaccount.B.3Relieftosugarco-operativesfrompastdemandIt is proposed that for sugar co-operatives, for years prior to A.Y.2016-17,ifanydeductionclaimedforexpendituremadeonpurchaseof sugarhasbeen disallowed,an applicationmay bemade to the Assessing Officer, who shall recompute the income ofthe relevant previous year after allowing such deduction up to theprice fixed orapprovedbytheGovernmentforsuchpreviousyear.B.4IncreasingthresholdlimitforCo-operativestowithdrawcashwithoutTDSIt is proposed to enable co-operatives to withdraw cash up to₹3croreinayearwithoutbeingsubjectedtoTDSonsuchwithdrawal.B.5Penalty for cash loan/transactions against primary co-operativesIt is proposed toamend section 269SS of the Act to provide thatwhereadepositisacceptedbyaprimaryagriculturalcreditsocietyoraprimaryco-operativeagriculturalandruraldevelopment bank from itsmember or a loanistaken from aprimaryagriculturalcreditsocietyoraprimaryco-operativeagricultural and rural development bank by its member in cash, nopenal consequence would arise, if the amount of such loanordeposit in cash is less than₹2 lakh. Further, section 269T of theAct is proposed to be amended to provide that where a deposit isrepaid by a primary agricultural credit society or a primary co-operative agricultural and rural development bank to its memberor such loan is repaid to a primary agricultural credit society or aprimary co-operative agricultural and rural development bank byitsmemberincash,nopenalconsequenceshallarise,iftheamountofsuchloanor depositincashislessthan₹2 lakh.B.6Relief to start-ups in carrying forward and setting off of lossesThe condition ofcontinuityofatleast51percentshareholdingforsettingoffofcarriedforwardlossesisrelaxedforaneligiblestartupifalltheshareholdersofthecompanycontinuetoholdthoseshares. At present this relaxation applies for losses incurred duringtheperiodof7yearsfromincorporationofsuchstart-up.Itis
proposedtoincreasethisperiodto10years.B.7ExtensionofdateofincorporationforeligiblestartupforexemptionCertainstart-upsareeligibleforsometaxbenefitiftheyareincorporated before 1st April, 2023. The period of incorporation ofsuch eligible start-ups is proposed to be extended by one year tobefore1stApril,2024.B.8GoldtoElectronicGoldReceiptThe conversion of physical gold to Electronic Gold Receipt and viceversa is proposed not to be treated as a transfer and not to attractany capital gains. This would promote investments in electronicequivalentofgold.B.9Incentivesto IFSCRelocationoffundstoIFSChascertaintaxexemptions,iftherelocationisbefore31.03.2023.Thisdateisproposedtobeextended to 31.03.2025. Further, any distributed income from theoffshorederivativeinstrumentsenteredintowithanoffshorebanking unit is also proposed to be exempted subject to certainconditions.B.10Exemptiontodevelopmentauthoritiesetc.It is proposed to provide exemption to any income arising to abody or authority or board or trust or commission, (not being acompany) whichhas been established or constituted by or undera Central or State Act with the purposes of satisfying the need forhousing or for planning, development or improvement of cities,townsandvillagesorforregulatinganyactivityormatter,irrespectiveofwhether itiscarryingoutcommercialactivity.B.11FacilitatingcertainstrategicdisinvestmentsTofacilitatecertainstrategicdisinvestments,itisproposedtoallowcarryforwardofaccumulatedlossesandunabsorbeddepreciationallowancein thecase of amalgamationofone ormore banking company with any other banking institution or acompanysubsequenttoastrategicdisinvestment,ifsuchamalgamationtakesplacewithin5yearsofstrategicdisinvestment.Itisalsoproposedtomodifythedefinitionof‘strategicdisinvestment’.
| B.1215 per cent concessional tax to promote new manufacturing co-operativesocietyIn order to promote the growth of manufacturing in co-operativesector, a new co-operative society formed on or after 01.04.2023,whichcommencesmanufacturingorproductionby31.03.2024anddonotavailofanyspecifiedincentiveordeduction,isproposed to be allowed an option to pay tax at a concessional rateof 15 per cent similar to what is available to new manufacturingcompanies. |
| C.EASEOF COMPLIANCE |
| C.1EaseinclaimingdeductiononamortizationofpreliminaryexpenditureAtpresentforclaimingamortizationofcertainpreliminaryexpenses, the activity is to be carried out either by the assessee orby a concern approved by the Board. In order to ease the processofclaimingamortizationoftheseexpensesitisproposedtoremovetheconditionofactivityinconnectionwiththeseexpenses to be carried out by a concern approved by the Board.Format for reporting of such expenses by the assessee shall beprescribed.C.2IncreasingthresholdlimitsforpresumptivetaxationschemesInordertoeasecomplianceandtopromotenon-cashtransactions, it is proposed to increase the threshold limits forpresumptive scheme of taxation for eligible businesses from₹2croreto₹3croreandforspecifiedprofessionsfrom₹50lakhto₹75 lakh. The increased limit will apply only in case the amount oraggregate of the amounts received during the year, in cash, doesnotexceedfivepercentofthetotalgrossreceipts/turnover.C.3Extending the scope for deduction of tax at source at lower or nilrateItisproposedtoallowataxpayertoobtaincertificateofdeduction of tax at source to lower or nil rate on sums on whichtax is required to be deducted under section 194LBA of the Act byBusinessTrusts. |
| D.WIDENING&DEEPENINGOFTAXBASEANDANTIAVOIDANCE |
| D.1It is proposed to extend thedeemed incomeaccrual provisionrelatingtosumsofmoneyexceedingfiftythousandrupees,received from residents without consideration to a not ordinarilyresidentwitheffectfrom1stApril,2023.D.2It isproposed toomit the provision to allow tax exemption tonews agencies set up in India solely for collection and distributionofnews fromthefinancialyear2023-24.D.3It is proposed to tax distributed income by business trusts in thehands of a unit holder (other than dividend, interest or rent whichis already taxable) on which tax is currently avoided both in thehandsofunitholder aswellasinthehandsofbusinesstrust.D.4ItisproposedtowithdrawtheexemptionfromTDScurrentlyavailableoninterestpaymentonlisteddebentures.D.5Withrespecttopresumptiveschemesfornon-residents,itisproposed to disallow carried forward and set off of loss computedasperbooks ofaccountwithpresumptiveincome.D.6For online games, it is proposed to provide for TDS and taxabilityon net winnings at the time of withdrawal or at the end of thefinancialyear.Moreover,TDSwouldbewithoutthethresholdof₹10,000.Forlottery,crosswordpuzzlesgames,etcthresholdlimit₹10,000forTDSshallcontinuebutshallapplytoaggregatewinningsduringafinancialyear.D.7The rate of TCS for foreign remittancesfor education and formedical treatment is proposed to continue to be 5 per cent forremittances in excess of₹7 lakh. Similarly, the rate of TCS onforeignremittancesforthe purpose of education through loanfrom financial institutions is proposed to continue to be 0.5 percent in excess of₹7 lakh. However, for foreign remittances forother purposes under LRS and purchase of overseas tour program,it is proposed to increase the rates ofTCS from5 per cent to 20percent.D.8Tax on capital gains can be avoided by investing proceeds of suchgains in residential property. This is proposed to be capped at₹10crore. |
| D.9Theincomefrommarketlinkeddebenturesisproposedtobetaxedasshort-termcapitalgains attheapplicablerates.D.10It is proposed to provide for some provisions to minimise risk torevenueduetoundervaluationofinventory.D.11It is proposed to provide that where aggregate of premium for lifeinsurance policies (other than ULIP) issued on or after 1stApril,2023isabove₹5lakh,incomefromonlythosepolicieswithaggregate premium up to₹5 lakh shall be exempt. This will notaffect the tax exemption provided to the amount received on thedeath of person insured. It will also not affect insurance policiesissuedtill31stMarch,2023.D.12It is proposed to amend provisions for computing capital gains incaseofjointdevelopmentofpropertytoincludetheamountreceivedthroughchequeetc.as consideration.D.13While interest paid on borrowed capital for acquiring or improvingapropertycan,subjecttocertainconditions,beclaimedasdeductionfromincome,itcanalsobeincludedinthecostofacquisition or improvement on transfer, thereby reducing capitalgains.Itisproposed to provide thatthe costof acquisition orimprovementshall notincludetheamountofinterestclaimedearlier as deduction.D.14Therearecertainassetslikeintangibleassetsorrightsforwhichno consideration has been paid for acquisition and the transfer ofwhich may result in generation of income. Their cost of acquisitionisproposedtobedefinedtobeNIL. |
| E.IMPROVINGCOMPLIANCEANDTAXADMINISTRATION |
| E.1With respect to rectification of orders by the Interim Board ofSettlement, it is proposed to provide that where the time-limit foramending an order by it or for making an application to it expireson or after 01.02.2021 but before 01.02.2022, such time-limit shallstandextendedto30.09.2023.E.2ToexpeditethedisposalofcertainappealspendingwithCommissioner(Appeals),itisproposedtointroduceanewauthorityintherankofJointCommissioner/AdditionalCommissioner[JCIT(Appeals)],forappealsagainstcertainorders |
passed by or with the approval of an authority below the rank ofJointCommissioner.Certainrelatedandconsequentialamendmentsarealsoproposedinthisregard.E.3It is proposed to reduce the minimum time period required to beprovided by the transfer pricing officer to assessee for productionofdocumentsandinformationfrom30 daysto10 days.E.4It is proposed to provide for appeal against penalty orders passedbyCommissioner(Appeals)undercertainsectionsoftheActbefore the Appellate Tribunal. It is also proposed to provide thatanorderundersection263oftheActpassed bythePrincipalChief Commissioner or Chief Commissioner and any rectificationorder for the same shall also be appealable before the AppellateTribunal. Further, it is proposed to enable filingof memorandumof cross-objections in all classes of cases against which appeal canbemadetotheAppellateTribunal.E.5Itisproposedtoamendsection132oftheAct,dealingwithsearchandseizure,toallowtheauthorisedofficertotakeassistanceofspecificdomainexpertslikedigitalforensicprofessionals,valuersandservicesofotherprofessionalslikelocksmiths, carpenters etc. during the course of search and also toaid in accurate estimation of undisclosed income held in the formofpropertyby theassessee.E.6Section170AoftheAct,insertedvideFinanceAct,2022isproposed to be substituted to clarify that a modified return shallbefurnishedbyanentitytowhomtheorderofthebusinessreorganisation applies, and to introduce provisions for assessmentorreassessmentincaseswheresuchmodifiedreturn isfurnished.E.7It is proposed that an order of assessment may be passed within aperiod of 12 months from the end of the relevant assessment yearor the financial year in which updated return is filed, as the casemaybe.Itisalsoproposedthatincaseswheresearchundersection 132 of the Act or requisition under section 132A of the Acthas been made, the period of limitation of pending assessmentsshallbeextendedby twelvemonths.E.8ItisproposedtomakeamendmentstoempowertheCentralGovernmenttomakemodificationsinthealreadynotified
| schemesregardinge-Verification,DisputeResolution,AdvanceRulings,AppealandPenalty,atanytimetoenablebetterimplementationofsuchschemes.E.9Itisproposedtolimitthetimeforfurnishingofareturnforreassessment. Further, it is also proposed toprovide that in caseswhere search related information is available after 15th March ofany financial year, an additional period of fifteen days shall beallowed for issuance of notice, for assessment/reassessments etc,under section 148 of the Act. It is also proposed to clarify that thespecified authority for granting approval shall be Principal ChiefCommissioner or Principal Director General or Chief CommissionerorDirectorGeneral.E.10Itisproposedtoprovideapenaltyof₹5,000ifthereisanyinaccuracy in the statement of financial transactions submitted byaprescribedreportingfinancialinstitutionduetofalseorinaccurateinformationsubmittedbytheaccountholder.E.11It is proposed to amend section 271C and section 276B of the ActtoprovideforpenaltyandprosecutionwheredefaultinTDSrelatestotransactioninkind.E.12.It is proposed to amend the time period for filing of appeal againstthe order of the Adjudicating authority under Benami Act within aperiod of 45daysfromthe date when suchorder isreceived bythe Initiating Officer or the aggrieved person. The definition of‘HighCourt’isalsoproposedtobemodifiedtoallowdetermination of jurisdiction for filing appeal in the case of non-residents. |
| F.RATIONALISATION |
| F.1The restriction on interest deductibility on interest payment tooverseasassociatedenterprisedoesnotapplytothoseinthebusiness of banking and insurance. It is proposed to extend thisbenefittonon-bankingfinancialcompanies,asmaybenotified.F.2TDS on payment of certain income to a non-resident is currently atthe rate of 20 per cent, but the tax rate in treaties may be lower. Itis proposed to allow the benefit of tax treaty at the time of TDS onsuchincomeundersection196AoftheAct. |
F.3At present the TDS rate on withdrawal of taxable component fromEmployees’ Provident Fund Scheme in non-PAN cases is 30 percent. It is proposed to reduce it to 20 per cent, as in other non-PANcases.F.4Sometimes, tax for income of an earlier year is deducted later,whiletaxthereonhasalreadybeenpaidintheearlieryear.Amendmentisproposedtofacilitatesuchtaxpayerstoclaimcreditofthis TDSintheearlieryear.F.5Higher TDS/TCS rate applies, if the recipient is a non-filer i.e. whohas not furnished his return of income of preceding previous yearandhasaggregateofTDSandTCSof₹50,000ormore.Itisproposed to exclude a person who is not required to furnish thereturn of income for such previous year and who is notified by theCentralGovernmentintheOfficial Gazetteinthisbehalf.F.6It is proposed to clarify that the amount of advance tax paid isreduced only once for computing the interest payable u/s 234B inthecaseofanupdatedreturn.F.7Itisproposedtoextendtaxabilityoftheconsideration(shareapplication money/ share premium) for shares exceeding the facevalueofsuchsharestoall investorsincludingnon-residents.F.8It is proposed to enable prescription of a uniform methodology forcomputing the value of perquisite with respect to accommodationprovidedby employers totheiremployees.F.9It is proposed to provide a time limit for an SEZ unit to bring theproceeds from exports of goods or services into India. The filing ofincome-tax returnisalsoproposed tobe made mandatory forclaiming deductiononexportincome.F.10Duetochangesinclassificationofnon-bankingfinancialcompanies by the Reserve Bank of India, it is proposed to makenecessary amendments to align such classifications in the Act withthesame.F.11It is proposed to clarify that for taxability under section 28 of theAct as well for tax deduction at source under section 194R of theAct,thebenefitcouldalsobeincash.F.12Itisproposedtomakeamendmentsrelatingtoexemption
| providedtocharitabletrustsandinstitutionto·provideclarityon taxtreatmenton replenishmentof corpusandonrepaymentofloans/borrowings;·treatonly85percentofdonationmadetoanothertrustasapplication;·omittheredundantprovisionsrelatedtorollingbackofexemption;·combineprovisionalandregularregistrationinsomecases;·modifythescopeofspecifiedviolation;·provide for payment of tax on assets if a trust does not applyfor exemption after getting provisional exemption and for re-exemptionafterexpiry ofexemption;·alignoftimefor furnishingofcertain forms;·clarify that the time provided for furnishing return of incomefor claiming exemption shall not include the time provided forfurnishing updatedreturn.F.13It is proposed to omit certain name-based funds from section 80Gof the Act, which provides for deduction of donation to such fundsfromtheincomeofthedonor.F.14It is proposed to provide that where refund is due to a person,suchrefundshallbesetoffagainstexistingdemand,andifproceedings for assessment or reassessment are pending in suchcase, the refund due will be withheld by the Assessing Officer tillthedateofassessmentorreassessment. |
| G.OTHERS |
| G.1Itisproposedtoomitsection88andsomeoftheclausesofsection10oftheActwhicharenolongerinforce.G.2It is proposed to extend tax exemption to Specified Undertaking ofUnit Trust of India (SUUTI) till 30thSeptember,2023. It isalsoproposed to enable the Central Government to notify the date ofvacationofofficeofadministrator ofSUUTI.G.3Itisproposedtodecriminalizecertainactsofomissionofliquidatorsundersection276AoftheActwitheffectfrom1stApril, 2023. |
Annexure to Part B of the Budget Speech 2023-24AmendmentsrelatingtoIndirect Taxes
| A.LEGISLATIVECHANGESINCUSTOMSLAWS |
| A.1Amendmentsinthe CustomsAct,1962Section 25 (4A) is being amended toexclude certain categories ofconditional customs duty exemptions from the validity period oftwo years, such as, notificationsissued in relation to multilateralorbilateraltradeagreements;obligationsunderinternationalagreements, treaties, conventions including with respect to UNagencies,diplomats,internationalorganizations;privilegesofconstitutionalauthorities;schemesunderForeignTradePolicy;Central Government schemes having a validity of more than twoyears; re-imports, temporary imports, goods imported as gifts orpersonal baggage; any other duties of Customs under any otherlaw in force includingIGST levied under section 3(7) of CustomsTariff Act, 1975, other than duty of customs levied under section12oftheCustoms Act1962.Section 127C isbeing amendedto specify a time limitofninemonths from date of filing application for passing final order bySettlementCommission.A.2AmendmentsintheprovisionsrelatingtoAnti-DumpingDuty(ADD), Countervailing Duty (CVD), and Safeguard MeasuresSections9,9A,9CoftheCustomsTariffActarebeingamendedtoclarifytheintentandscopeoftheseprovisions.Theyarealsobeingvalidatedretrospectivelywitheffectfrom 1stJanuary1995.A.3Amendments in the First Schedule to the Customs Tariff Act, 1975TheFirstScheduletotheCustomsTariffAct,1975isbeingamended to increase the rates on certain tariff items with effectfrom 02.02.2023 and also modify the rates on certain other tariffitemsaspartofraterationalisationwitheffectfromdateofassent.The First Schedule to the Customs Tariff Act is being proposed tobeamendedinaccordancewithHSN2022amendments.New tariff lines are also proposed to be created, which will help inbetter identification of millet-based products, mozzarella cheese,medicinalplantsandtheirparts,certainpesticides,telecom |
| products,syntheticdiamonds,cotton,fertilizergradeureaetc.This will also helpintrade facilitationby better identificationofthe above items, getting clarity on availing concessional importdutythroughvariousnotificationsandthusreducingdwelltime.Thesechangesshallcomeintoeffectfrom01.05.2023.A.4Amendment in the Second Schedule to the Customs Tariff Act,1975The Second Schedule (Export Tariff) is being amended to align theentries under heading 1202 with that of the First Schedule (ImportTariff). |
| B.LEGISLATIVECHANGESINGSTLAWS |
| B.1DecriminalisationSection 132 and section 138 of CGST Act are being amended, interalia, to–·raisetheminimumthresholdoftaxamountforlaunchingprosecutionunderGSTfrom₹onecroreto₹twocrore,except for the offence of issuance of invoices without supplyofgoodsorservicesorboth;·reduce the compounding amount from the present range of50 per centto 150 per cent of tax amount to the range of 25percentto100percent;·decriminalize certain offences specified under clause (g), (j)and (k) of sub-section (1) of section 132 of CGST Act, 2017,viz.-oobstructionorpreventinganyofficerindischargeofhisduties;odeliberatetemperingofmaterialevidence;ofailuretosupplythe information.B.2Facilitatee-commerceformicroenterprisesAmendments are being made in section 10 and section 122 of theCGSTActtoenableunregisteredsuppliersandcompositiontaxpayerstomakeintra-statesupplyofgoodsthroughE-CommerceOperators (ECOs),subjecttocertainconditions.B.3AmendmenttoScheduleIIIofCGSTAct,2017Paras 7, 8 (a) and 8 (b) were inserted in Schedule III of CGST Act,2017 with effect from 01.02.2019 to keep certain transactions/activities,suchassuppliesofgoodsfromaplaceoutsidethetaxable territory to another place outside the taxable territory,highseasalesandsupplyofwarehousedgoodsbeforetheirhome |
clearance, outside the purview of GST. In order to remove thedoubts and ambiguities regarding taxability of such transactions/activities during the period 01.07.2017 to 31.01.2019, provisionsarebeingincorporatedtomakethesaidparaseffectivefrom01.07.2017. However, no refund of tax paid shall be available incases whereanytaxhas alreadybeenpaidinrespectofsuchtransactions/activitiesduringtheperiod01.07.2017to31.01.2019.B.4ReturnfilingunderGSTSections 37, 39, 44 and 52 of CGST Act, 2017 arebeing amendedto restrict filing of returns/ statements to a maximum period ofthree years from the due date of filing of the relevant return /statement.B.5Input TaxCreditforexpenditurerelatedtoCSRSection 17(5) of CGST Act is being amended to provide that inputtax credit shall not be available in respect of goods or services orboth received by a taxable person, which are used or intended tobe used for activities relating to his obligations under corporatesocial responsibility referred to in section 135 of the CompaniesAct,2013.B.6SharingofinformationA new section 158A in CGST Act is being inserted to enable sharingof the information furnished by the registered person in his returnor application of registration or statement of outward supplies, orthe details uploaded by him for generation of electronic invoice orE-way bill or any other details on the common portal, with othersystemsinamannertobeprescribedB.7Amendmentsinsection2clause(16)ofIGSTAct,2017Clause(16)ofsection2ofIGSTActisamendedtorevisethedefinitionof“non-taxableonlinerecipient”byremovingthecondition of receipt of online information and database access orretrieval services for purposes other than commerce, industry orany other business or profession so as to provide for taxability ofOIDARserviceprovidedbyanypersonlocatedinnon-taxableterritory to an unregistered person receiving the said services andlocated in the taxable territory. Further, it also seeks to clarify thatthe personsregistered solelyin termsof clause (vi) of Section 24ofCGSTActshallbetreatedasunregisteredpersonforthepurposeofthesaidclause.
B.8Online information and database access or retrieval servicesClause(17)ofsection2of IGST Actisbeingamendedtorevisethedefinitionof“onlineinformationanddatabaseaccessorretrievalservices”toremovetheconditionofrenderingofthesaidsupplybeingessentiallyautomatedandinvolvingminimalhumanintervention.B.9PlaceofsupplyincertaincasesProviso to sub-section (8) of section 12 of the IGST Act is beingomittedsoastospecifytheplaceofsupply,irrespectiveofdestination of the goods, in cases where the supplier of servicesandrecipientofservices arelocatedinIndia.
C.CUSTOMSDUTYRATECHANGES
C.1.Reduction in basic customs duty to reduce input costs, deepen valueaddition, to promote export competitiveness, correct inverted dutystructure so as to boost domestic manufacturing etc [witheffectfrom02.02.2023]
| S.No. | Commodity | From(percent) | To(percent) | |
| I. | AgriculturalProducts | |||
| 1. | PecanNuts | 100 | 30 | |
| 2. | Fishmealformanufactureofaquaticfeed | 15 | 5 | |
| 3. | Krillmealformanufactureofaquaticfeed | 15 | 5 | |
| 4. | Fishlipidoilformanufactureofaquaticfeed | 30 | 15 | |
| 5. | AlgalPrime(flour)formanufactureofaquaticfeed | 30 | 15 | |
| 6. | MineralandVitaminPremixesformanufactureofaquaticfeed | 15 | 5 | |
| 7 | CrudeglycerinforuseinmanufactureofEpichlorohydrin | 7.5 | 2.5 | |
| 8 | Denaturedethylalcoholforuseinmanufactureofindustrialchemicals. | 5 | Nil | |
| II. | Minerals | |||
| 1 | Acidgradefluorspar(containingbyweightmorethan97percentofcalciumfluoride) | 5 | 2.5 | |
| III. | GemsandJewellerySector | |||
| 1. | Seedsforuseinmanufacturingofroughlab-growndiamonds | 5 | Nil | |
| IV. | CapitalGoods | ||
| 1. | Specified capitalgoods/machineryformanufacture of lithium-ion cell for useinbatteryofelectricallyoperatedvehicle(EVs) | Asapplicable | Nil(up to31.03.2024) |
| V. | ITandElectronics | ||
| 1. | Specifiedchemicals/itemsformanufactureofPre-calcinedFerritePowder | 7.5 | Nil(upto31.03.2024) |
| 2. | PalladiumTetraAmineSulphateformanufactureof partsofconnectors | 7.5 | Nil(upto31.03.2024) |
| 3. | Cameralensanditsinputs/partsforuse in manufacture of camera moduleofcellularmobilephone | 2.5 | Nil |
| 4. | SpecifiedpartsformanufactureofopencellofTV panel | 5 | 2.5 |
| VI. | ElectronicAppliances | ||
| 1. | Heatcoilformanufactureofelectrickitchenchimneys | 20 | 15 |
| VII. | Others | ||
| 1. | Warm blood horse imported by sportspersonofoutstandingeminencefortraining purpose | 30 | Nil |
| 2. | Vehicles,specifiedautomobileparts/components,sub-systemsandtyreswhenimportedbynotifiedtestingagencies,forthepurposeoftesting and/ or certification, subject toconditions. | Asapplicable | Nil |
C.2.IncreaseinCustomsduty[witheffectfrom02.02.2023]
| S.No. | Commodity | Rateofduties | |
| From(percent) | To(percent) | ||
| I. | Chemicals | ||
| 1. | Styrene | 2(+0.2SWS) | 2.5(+0.25SWS) |
| 2. | Vinylchloridemonomer | 2(+0.2SWS) | 2.5(+0.25SWS) |
| II | Petrochemical | ||
| 1 | Naphtha | 1 | 2.5 |
| (+0.1SWS) | (+0.25SWS) | ||
| III. | PreciousMetals | ||
| 1. | Silver(includingsilverplatedwithgold | 7.5 | 10 |
| orplatinum),unwroughtorinsemi- | (+2.5 | (+5AIDC+ | |
| manufacturedforms,orinpowder | AIDC+0.75 | NilSWS) | |
| form | SWS) | ||
| 2. | Silverdore | 6.1 | 10 |
| (+2.5 | (+4.35 | ||
| AIDC+0.61 | AIDC+Nil | ||
| SWS) | SWS) | ||
| IV. | GemsandJewellerySector | ||
| 1. | ArticlesofPreciousMetalssuchasgold/silver/platinum | 20(+NilAIDC+2SWS) | 25(+NilAIDC+NilSWS) |
| 2. | ImitationJewellery | 20or₹ | 25or₹ |
| 400/kg., | 600/kg., | ||
| whicheveris | whicheveris | ||
| higher | higher | ||
| (+NilAIDC+2or₹40per | (+NilAIDC+NilSWS) | ||
| KgSWS) |
| S.No. | Commodity | Rateofduties | |
| From(percent) | To(percent) | ||
| V. | Automobiles | ||
| 1 | Vehicle(includingelectricvehicles)in | 30 | 35 |
| Semi-KnockedDown(SKD)form. | (+3SWS) | (+NilSWS) | |
| 2 | VehicleinCompletelyBuiltUnit(CBU) | 60 | 70 |
| form,otherthanwithCIFmorethanUSD40,000orwithenginecapacity | (+6SWS) | (+NilSWS) | |
| morethan3000ccforpetrol-run | |||
| vehicleandmorethan2500ccfor | |||
| diesel-runvehicles,orwithboth | |||
| 3 | ElectricallyoperatedVehiclein | 60 | 70 |
| CompletelyBuiltUnit(CBU)form,otherthanwithCIFvaluemorethan | (+6SWS) | (+NilSWS) | |
| USD40,000 | |||
| VI. | Others | ||
| 1. | Bicycles | 30(+NilAIDC+3SWS) | 35(+NilAIDC+NilSWS) |
| 2. | Toysandpartsoftoys(otherthanpartsofelectronictoys) | 60(+Nil AIDC+6SWS) | 70(+Nil AIDC+NilSWS) |
| 3. | CompoundedRubber | 10 | 25 or₹30/kg.,whicheverislower |
| 4. | ElectricKitchenChimney | 7.5 | 15 |
*AIDC -Agriculture InfrastructureDevelopmentCess; SWS – Social WelfareSurcharge
D.CHANGESINCENTRAL EXCISE
D.1.NCCDDutyrateonCigarettes[witheffectfrom02.02.2023]
| Descriptionofgoods | Rateofexciseduty | |
| From(₹per1000sticks) | To(₹per1000sticks) | |
| Other than filter cigarettes, of length notexceeding 65mm | 200 | 230 |
| Other than filter cigarettes, of length exceeding65mmbutnotexceeding70mm | 250 | 290 |
| Filtercigarettesoflengthnotexceeding65mm | 440 | 510 |
| Filtercigarettesoflengthexceeding65mmbutnotexceeding70mm | 440 | 510 |
| Filtercigarettesoflengthexceeding70mmbutnotexceeding75mm | 545 | 630 |
| Othercigarettes | 735 | 850 |
| Cigarettesoftobaccosubstitutes | 600 | 690 |
D.2.OtherchangesinCentralExcise[witheffectfrom02.02.2023]
Inordertopromotegreenfuel, centralexcisedutyexemption isbeingprovided to blended Compressed Natural Gas from so much of the amountas is equal to the GST paid on Bio Gas/Compressed Bio Gas contained in theblendedCNG.
E.OTHERS
There are few other changes of minor nature.For details of the budgetproposals,theExplanatoryMemorandumandotherrelevantbudgetdocumentsmay bereferredto.
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