Highlights of Part B Budget 2023

Indirect Taxes:

1. Customs duty on goods related to textiles, toys, bicycle reduced from 21% to 13%
2. To promote Green Mobility – basic customs duty concession has been given for lithium-ion battery
3. To promote Electronics manufacture- relief has been given on customs duty for camera lens and lithium battery 
4. Television – TV panels customs duty has been reduced
5. Electric kitchen chimney to reduce inverted duty structure from 7.5% to 15%
6. Benefit for ethanol blending program and acid program and epichlorohydrin
7. Marine Products- to promote exports – shrimps, etc. Duty on shrimp feed reduced
8. Basic Customs duty reduced for seeds in manufacture for diamonds
9. Customs duty to increase in silver bars
10. Steel – concessional customs duty on steel and ferrous products
11. Copper – concessional customs duty on copper
12. Rubber – concessional customs duty on rubber
13. Cigarettes – increased tax

Direct Taxes:

1. Common IT form and grievance redressal system
2. MSME – avail benefit of presumptive taxation increased to 44AD to 3 crores
   Professionals’ u/s 44ADA – 75 lakhs. Provided receipt in cash doesn’t exceed 5%.
3. TDS only on payment for deduction
4. Co-operatives tax -15%
   Higher limit of 2 lakh per member for cash deposit in agricultural banks
   Higher limit of Rs. 3 crores on TDS for cooperative societies
5. Start-ups – To avail start-up benefits from 31-03-2023 to 31-03-2024
6. 100 new joint commissioners for appeal
7. Section 54 to Section 54F capped at 10 crores
8. TDS on Online gaming –
9. TDS 30% to 20% on taxable portion of EPF
10. Extending funds for GIFT and IFSC

Personal Income Tax:

1. Rebate for income up to 7 lakhs u/s 87A in the new tax regime
2. New tax regime from
   Rs. 0 – Rs. 3 lakhs – NIL
   Rs. 3 Lakhs – Rs. 6 lakhs – 5%
   Rs. 6 Lakhs – Rs. 9 lakhs – 10%
   Rs. 9 lakhs – Rs. 12 lakhs – 15%
   Rs. 12 Lakhs – Rs. 15 lakhs – 20%
   Above 15 lakhs – 30 %
3. Standard deduction for new tax regime for Rs. 15.5 lakhs or more -52,500
4. Reduction of highest surcharge from 37% to 25% on new income tax regime
5. Limit on tax exemption for leave encashment is increased from 3,00,000 to 25,00,000
6. New income tax regime will be the default regime