Budget 2023 Highlights: PDF Download, Key Takeaways, Important Points

The Finance Minister, Nirmala Sitharaman, unveiled the Union Budget 2023 on 1st February 2023. 

Citizens anticipated various populist measures from this Budget and measures that would support India’s $5 trillion economy goal. With enhanced Capex, infrastructure upgrades and incentives for key sectors, it is no longer a lofty goal but an actionable plan ready for deployment. 

This budget aims to address the ongoing challenges and fortify the nation for the next few decades. Various measures were included to boost consumption in the economy, ease compliance burden, benefit MSMEs and the middle-class and simplify and streamline the tax system.

The Budget mentioned: Inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power, financial sector as its seven priorities. Let’s decode Budget 2023.

Budget 2023 Highlights: Direct Tax

Changes in New Tax Regime

The new tax regime is now the default tax regime. The government has taken 5 key measures to make the new tax regime more attractive. However, taxpayers have an option to choose the old tax regime.

Income rangeIncome tax rate
Up to Rs. 3,00,000Nil
Rs. 300,000 to Rs. 6,00,0005% on income which exceeds Rs 3,00,000 
Rs. 6,00,000 to Rs. 900,000Rs 15,000 + 10% on income more than Rs 6,00,000
Rs. 9,00,000 to Rs. 12,00,000Rs 45,000 + 15% on income more than Rs 9,00,000
Rs. 12,00,000 to Rs. 1500,000Rs 90,000 + 20% on income more than Rs 12,00,000
Above Rs. 15,00,000Rs 150,000 + 30% on income more than Rs 15,00,000

Presumptive Taxation Limits Revised for FY 2023-24

CategoryPrevious limitsRevised limits
Sec 44AD: For small businessesRs 2 croreRs 3 crore*
Sec 44ADA: For professionals like doctors, lawyers, engineers, etc.Rs 50 lakhRs 75 lakh*

*The increase in limits is subject to a condition that the 95% of the receipts must be through online channels. 


Start-upsPrevious limiitRevised limit
Date of incorporation for income tax benefits31.03.202331.03.2024
Time limit for set-off and carry forward of losses7 years from incorporation10 years from incorporation

Only condition is that shareholders who hold at least 51% shareholding must continue to hold the shares in the year such loss is to be carried forward and set-off.

Co-operative Societies:

Some of the proposals announced for co-operative Societies are:

Other Direct Tax Updates

Budget 2023 Highlights: Indirect Tax

Customs Duty Changes

The indirect tax proposals made in Budget 2023 promote exports, encourage domestic manufacturing, enhance domestic value addition, and boost green energy and mobility.

The customs duties were revised on the following list of items-

Items of which customs duty was revisedImpact/Benefit
Imported capital goods for lithium-ion battery manufacturingFor greener mobility
Imported mobile camera lensDeepening value addition
Denatured ethyl alcoholBenefits the chemical industry
Primary inputs for making shrimp feedIncrease in marine exports
Seeds for manufacturing lab-grown diamondsPromotes exports
Extending the concessional Basic Customs Duty (BCD) on copper scrapIncreasing raw material availability for MSMEs
Compounding rubber to bring it at par with natural rubberTo curb duty circumvention

GST Changes

Budget 2023 Highlights: Inclusive Development

The government’s policy of “Sabka Saath Sabka Vikas” has benefited various sections of society, including women, SCs, STs, OBCs, and other underprivileged groups. The budget will continue to build on those efforts.

Budget 2023 Highlights: Reaching the last mile

Budget 2023 Highlights: Infrastructure and investment

Budget 2023 Highlights: Unleashing the potential

Budget 2023 Highlights: “Green Growth”

The government included “Green Growth” among the seven focus areas of this year’s Budget, with the aim of achieving net zero carbon emissions in India by 2070. To support this following announcements were made: 

Budget 2023 Highlights: Youth power

Budget 2023 Highlights: Financial sector

Budget 2023 Highlights: What’s Cheaper and What’s Costlier?

What got cheaperWhat got costlier
GoldTravel by flights
TelevisionsImitation jewellery
Compressed gas for EVsSilver
Lab-grown diamondsBicycles
Lithium-ion batteries for mobile phonesElectric kitchen chimney
Industrial rubber

Budget 2023 Highlights: Key Numbers and Budget Allocation

FY23 GDP growth estimated at 7%. To spend Rs 2,200 crore on high-value horticulture crops as part of the Atmanirbhar Clean Plant Programme to enhance the supply of superior, disease-free planting material.

The agricultural credit target will be increased to Rs 20 lakh crore.

Budget 2023 PDF Download

Budget at a Glance (Full)PDF
Budget SpeechPDF
Deficit StatisticsPDF
Transfer of Resources to States and Union Territories with LegislaturePDF
Budget ProfilePDF
Outlay on Major SchemesPDF
Statement I – Consolidated Fund of IndiaDownload
Revenue Account – ReceiptsPDF
Revenue Account – DisbursementsPDF
Capital Account – ReceiptsPDF
Capital Account – DisbursementsPDF
Statement IA – Disbursements ‘Charged’ on the Consolidated Fund of IndiaPDF
Statement II – Contingency Fund of India – NetPDF
Statement III – Public Account of IndiaDownload
Receipts & Expenditure of Union Territories without LegislaturePDF
Finance BillPDF
Budget Highlights (Key Features)PDF
Memorandum to the Finance Bill 2023PDF
Expenditure BudgetPDF
Receipt Budget PDF

Budget 2023 Expectations 

According to the income tax department, salaried individuals comprise a large percentage of taxpayers. In 2022, nearly 50% of the ITRs filed were ITR-1 by salaried class individuals. But the salaried individuals had very little to cheer about in the last few budgets except the new tax regime. They have a few expectations they hope will be met. Rightly so, because the last few years have been difficult for them given the harsh impact of layoffs, pay cuts, rising inflation and the fear of global recession.

Potential changes that may be included in the budget for the salaried class are:

The current tax exemption limit of Rs.2.5 lakh has stayed the same since 2014-15. It should be increased to Rs 5 lakh, considering factors such as inflation. 

The government may raise the standard deduction limit from Rs 50,000 to Rs 1,00,000 in this budget.

Section 80C of the Income Tax Act currently offers a wide range of investment options such as the Public Provident Fund, Employee Provident Fund, National Pension System, Fixed Deposits, and home loan repayment. However, the deduction limit is restricted to Rs 1.5 lakh. Since the last review of this section in 2014, incomes have risen significantly, leaving limited scope for tax-saving investments. The government should consider reviewing the investment options or raising the deduction limit from Rs 1.5 lakh. 

The government may consider increasing the deduction limits under Section 80D from Rs.25,000/Rs.50,000 to Rs.50,000/Rs.1 lakh, respectively, due to high medical expenses and hospitalisation costs.

The surcharge rate of 37% brings the tax to 42.744% for people earning more than Rs.5 crores. It is time for the government to rationalise and revisit the surcharge rates.

31st March 2023 is the last date to claim deductions like 80EEA (interest on housing loan) and 80EEB (interest on electric vehicle loan). We can expect to see a 2-year extension on these deductions.

How much do you think a child’s education would cost today? The Child Education and Hostel Allowance have remained the same at Rs.100 and Rs.300 per child per month for over 20 years. The government should consider raising the limits to Rs.1,000 and Rs.3,000 per child per month, respectively. 

More on Budget 2023 expectations of various industries

Key Highlights of Budget 2022

The key highlights of Budget 2022 was embracing trust-based governance, it introduced ITR-U in Budget 2022, allowing taxpayers to declare their undeclared income or update their return within two years from the end of the relevant assessment year. The tax rates did not change in the financial year 2022-23, but we saw some aggressive moves that discouraged crypto transactions in India. 

A 30% tax was introduced on Virtual Digital Assets (VDA) like cryptocurrency without allowing the losses of one cryptocurrency to be offset against income from other cryptocurrencies. Also, no deductions were allowed besides the acquisition cost. This meant that crypto investors paid taxes on the gains, but in the event of losses, they solely bore the brunt.

Investors and traders also took a 1% cut in the form of TDS on payments exceeding Rs.10,000 per annum on VDAs. The Finance Act 2022 added Section 194S, where 10% TDS was introduced for persons providing benefits or perquisites over Rs.20,000 per annum, particularly impacting doctors, music bands, and influencers. 

A host of amendments were made under the GST law. Significant ones include sequential filing of GST returns, restriction to Input Tax Credit (ITC) claims to those that appear only in Form GSTR-2B of the buyer and adding a condition that filing of GSTR-1 is compulsory before filing GSTR-3B of the same period. The annual time limit for amendments to sales invoices/debit-credit notes and ITC claims belonging to a financial year was revised as 30th November of the following year.

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