Budget news live: Budget 2023 Expectations News LIVE Updates: Sitharaman likely to focus
Union Budget 2023 Expectations News Live: This budget is expected to be the last one before the general elections in 2024. Therefore, India expects the FM to provide a blue-sky vision for India and present a roadmap to fulfil the aspiration of India becoming a $10 trillion economy. The Budget could lay a roadmap for providing a boost to employment generation. An increased allocation for Railways, Defence, Airports, Irrigation, education, healthcare, and Roads are the basic expectations. The FM could also give a major relief to the salaried class by raising tax slabs and deductions. Increased disposable income in hands of middle class will not only boost consumption but also help services sector. India as a country has a low percentage of taxpayers and our tax to GDP ratio is quite low. While it is a far-fetched idea, we would like to see tax on agriculture income for rich farmers (may be tax on agriculture income above Rs 50 lakhs to start with) to widen the tax net.
!1 New UpdateClick here for latest updates
Budget 2023 Expectations LIVE: Pratik Gauri, Co-founder & CEO, 5ire on Web3
- The decline of trading volumes by as much as 85-90% is concerning, and the fear of not attracting investments in the Web3 innovative startups will impact the overall picture. The taxation of income and assets is entirely the purview of the government, and they have the exclusive right to impose and collect such dues.
- What I feel is of utmost importance here is to remember that any monumental shift caused by Web3 will be the world shifting from a “value capture” economy to a “value creation” economy. This will require a new set of rules, which democratizes access to resources for creators and makes value creation as rewarding as capturing value. This means a direct relationship between the human capital and the consumers of its creation.
- It is vital to ensure that any taxation regime does not hamper the development of India’s talent in Web3 and the supercharged innovative environment India has been experiencing recently.
- The efforts to introduce the new CBDC show that the RBI and taxation regime is committed to innovation. We look forward to working with them to produce dApp, DeFi, and ReFi solutions that help.”
LTCG tax: D-Street’s wishlist for Budget 2023
- Returns through investments made over a 1-3 year period are called long-term capital gains and they are taxed by the government. STT is a tax levied during purchase and sale of listed securities.
- The LTCG over Rs 1 lakh on listed equities in a financial year is taxable at the rate of 10%, while on purchase of an equity share settled through delivery or transfer of the share, the STT is 0.1%.
- STT was originally introduced in 2004 by the then Finance Minister P Chidambaram to curtail tax avoidance of capital gains. After protests by several brokers, the government reduced this tax in the 2013 budget.
- Given that liquidity is integral for the market, most experts believe that STT is a major roadblock, and the government must consider removing it.
Budget 2023 Expectations LIVE: What insurance sector wants?
- Separate section for life insurance premium
- Increase in tax exemption limit under section 80D
- Rationalise deductions available to pension plans
- GST for health insurance to be brought down to 5% from current 18%
- New income tax benefit for car insurance, home insurance
Budget 2023 Expectations LIVE: The Budget push that can make India’s tourism sector one of the world’s best
- Despite being responsible for 50 million jobs annually, almost 10% of India’s GDP, and the bulk of the country’s large indirect taxes, the tourism industry only receives a budget allocation of Rs 2,000 crore and has never been the theme of a comprehensive description by either the Finance or Tourism ministers.
- The tourist sector should be declared a priority sector for the next two years and given industrial status. The rising increase in inbound tourism should be encouraged to generate additional revenues via tax breaks. This will help increase local and international tourist demand. Reputable PR firms should be encouraged to promote India as a premier vacation destination that is open to passionate purists, midrange tourists, and lucrative mavericks.
ET Poll: How Indians want Sitharaman to steer the country’s EV drive
India’s electric vehicle industry saw sales of one million units for the first time in 2022. Though the milestone was reached contrary to the industry’s expectations, electric vehicles (EVs) account for a meagre 4.7 per cent of the total automobile sales in India.In a pre-budget poll conducted by ET Online, almost half of the respondents (49.1 per cent to be precise) highlighted the need for better charging infrastructure in the country.
Budget 2023 Expectations LIVE: N.A. Shah Associates’ Partner Parag Mehta on GST Pre-Budget expectation
There is a long-standing demand to include fuel under the GST regime and at present, one of the main expenses for those in the logistics and transportation sector is the cost of fuel. As it is not covered under GST, they are unable to take ITC on the same due to which there is an increase in cost for all. Non-inclusion of fuel in the ambit of GST is increasing the transport cost which is passed on to the trade which results in a cascading effect and increase in price of goods. Ultimately it is the final consumer who bears the cost of the said increase. If fuel is included under the ambit of GST, it is bound to reduce costs of transport and if benefit of the same is passed on to the consumers, it will lead to more spending power, benefiting the economy to a great extent.One time amnesty schemes have been instituted for the old Service Tax/Excise matters as well as the current GST matters. There have been various interpretational issues, frequent amendments, and unintentional errors after the introduction of GST. Also there have been various proceedings under the erstwhile Service Tax/Excise Laws. This has resulted in huge demands along with interest and penalty on the trade. A one-time amnesty will help the trade as well as remove the pendency of litigation at various levels and enable the trade to concentrate on their business.
Union Budget 2023 might be presented in new Parliament building
The New Parliament House is ready! The President Draupadi Murmu will address the Joint Session from New Lok Sabha… https://t.co/TUXtiZ2j4X
— Sonal Mansingh (@sonal_mansingh) 1674095348000
Budget 2023 Expectations LIVE: What taxpayers want in this budget
- Change in tax slabs and tax rates: With increasing costs of living and interest rates on loans on the rise, a relaxation in the income tax rates for individuals would be a welcome measure to restore purchasing power of individuals. The government could consider increasing the threshold for the highest tax rate from Rs 10 lakh to Rs 20 lakh, and reduce the highest tax rate from 30% to 25%, to bring it on par with the general income tax rate applicable to companies.
- Deduction under section 80TTA of the Income Tax Act, 1961: The deduction limit has remained static since it was introduced way back in FY 2012-13. With interest rates on the rise, the government should consider enhancing the limit from Rs 10,000 to Rs 50,000. Additionally, interest earned from fixed deposits with banks should also be included under this section to encourage the habit of savings among taxpayers.
- Deduction for children’s education costs: Currently, deduction towards expenses incurred on fees for children’s education is allowed under the overall limit of Rs 1. 5 lakh under section 80C of the Act and is often lost among the various other expenses/investments that fall within the ambit of this section.
- Increase in tax exemption limit for health insurance: The government could consider enhancing the deduction limit under section 80D of the Act from Rs 25,000/Rs 50,000 to Rs 50,000/Rs 1 lakh.
Budget 2023 Expectations LIVE: Govt may bump up allocation for existing PLI schemes
India is likely to substantially top up the allocation for ongoing Production-Linked Incentive (PLI) schemes in the February 1 budget after seeing good results, said people with knowledge of the matter. Some new sectors may be included in the programme that seeks to reignite manufacturing in India and boost exports, along with other measures to spur investments.
ET Poll: What should be the top priority for Modi government in this budget?
Taxing times ahead?
- Sustaining the current 19.5 per cent growth rate in income and corporate tax collections may be difficult in next fiscal year given headwinds from a slowing world and high base effect, a government source said. Net direct taxes, which are made up of personal income tax and the tax levied on corporate earnings, have seen a record growth in current fiscal year, topping up the numbers projected in the Budget.
- The expected lower nominal GDP growth in 2023-24 on the back of threats of global recession could impact income tax collection, the government source told reporters ahead of the presentation of Union Budget 2023-24 on February 1. The net direct tax collection grew 19.55 per cent to Rs 12.31 lakh crore till January 10. This is 86.68 per cent of the Budget estimates for current fiscal year. The forthcoming Budget will have revised revenue estimates for current fiscal year as well as tax collection estimates for the next year.
- As per first advance estimates, India’s nominal GDP is projected to grow at 15.4 per cent this fiscal year and after adjusting inflation, real GDP growth is expected to be 7 per cent.
What can make it a superhit budget for BJP before elections?
Budget 2023 Expectations LIVE: Rahul Pagidipati, CEO, ZebPay on what CRYPTO Industry wants from FM
- 2022 had been a crucial year for the Web3 and crypto industry. Despite being a relatively new and untested market, the crypto industry has witnessed rapid growth in India with an increasing number of people showcasing interest to invest in the asset class. According to a report released by FICCI and EY in 2022, Web 3.0 and blockchain can add a staggering $1.1 trillion to India’s GDP by 2032.
- In FY22, the government announced a 30% plus surcharge and cess as well as 1% TDS deduction on the transfer of Virtual Digital Assets. While it is great to see the government take a step towards regulating VDAs, in the upcoming budget 2023, we urge the government to create a progressive regulatory framework and offer clarity on taxation by reducing TDS and Capital Gains Taxes and levelling them with other asset classes such as stocks and bonds. This will address the ongoing concerns and uncertainty about the industry by creating transparency and help industry players to protect users from any kind of black swan events like the FTX collapse. Clear governance and regulatory framework will enable more people to invest in VDAs and attain financial freedom. It will also encourage innovation to transform existing businesses through blockchain technology as well as build newer…
Read More: Budget news live: Budget 2023 Expectations News LIVE Updates: Sitharaman likely to focus