The opening of the presentation by Finance Minister Nirmala Sitaraman was empowering. She opened by saying “This is the first Budget of Amrit Kaal.” The Indian economy is being given weightage all across the globe. India is growing at 7% when it comes to the fiscal highest in comparison to other major economies. The budget for 2023 was being eyed by several investors and entrepreneurs.
Several announcements were made by FM Nirmala Sitaraman during the budget speech which were about technology, the startup ecosystem, how Digilocker has a lot of scope, agritech startups, and much more. This year’s budget will be technology driven.
There were several amends made in the income tax slabs, individuals will have to pay no tax on income up to Rs 7 lakh under the new tax regime. The conference was held after the budget meeting; Finance Minister Nirmala Sitharaman put out the number of changes that have taken place. As India looked out for a direct tax structure that is simplified, she added that the government has tried to make the new tax regime favorable for taxpayers. It aims to benefit the middle class largely.
Following is the breakup: Individuals with an annual income of Rs 9 lakh will have to pay a tax of Rs 45,000 under the new tax regime change which amounts to 5% of the taxpayer’s income in this case. A deduction of Rs 52,500 will be made which is supposedly a standard deduction in the new tax regime. Income of up to 3 lakhs will have 0% or NIL tax, Rs 3 lakh to Rs 6 lakh tax rate is 5%, Rs 6 lakh to Rs 9 lakh tax rate is 10%, Rs 9 lakh to Rs 12 lakh tax rate is 15%, Rs 12 lakh to Rs 15 lakh tax rate is 20% and above Rs 15 lakh the tax rate is 30%.
In the last 9 years, India’s economy has grown rapidly, from being the 10th largest to now becoming the 5th largest economy across the globe. One of the contributing factors was that the per capita income rose from Rs 1.97 lakh. This growth comes amidst a time when many countries are facing recessionary trends. The economic survey of India which conducts an annual report every year and is published by the Finance Ministry showed that India’s GDP is going to grow between 6 to 6.8% with the consistency of remaining the fastest-growing economy.
As for startups, norms have been proposed to give startups tax incentives by extending the benefits of carrying forward the losses for a period of up to 10 years. Nirmala Sitharaman said “I propose to extend the date of incorporation for income tax benefits to startups from March 31, 2023, to March 31, 2024. I further propose to provide the benefit of carrying forward losses on change of shareholding of startups from seven years of incorporation to ten years”.
