FM Nirmala Sitharaman says, there will be a cut personal income tax slabs to 5 from 7; announces no tax for income up to Rs 3 lakh/year.
The New tax regime becomes the default tax regime. The government has taken a slew of measures for making the voluntary tax regime more attractive and will forego revenue in the process. Good going for a simplified tax regime and lesser compliance.
For avoiding cascading of taxes on blended compressed natural gas, proposal to exempt excise duty on GST paid on compressed biogas contained in it to provide impetus to green mobility; customs duty exemption to import of capial goods and material required for manufacture of lithium iron cells for batteries used in EVs, says the Finance Minister.
100 labs for developing apps using 5G services will be set up in engineering institutions. To realise new range of opportunities, business models and employment potential, labs will cover among others, apps such as smart classrooms, precision farming, intelligent transports systems and healthcare, announced FM Sitharaman.
Credit guarantee for the MSMEs. The revamp schemes will take effect from 2023 through an infusion of Rs 9,000 crore in the corpus. This will enable another collateral-free credit of Rs 2 lakh crore. Further the cost of credit will be reduced by around 1 percent, says the Finance Minister.
FM Proposes New Tax Regime
Change tax structure in regime, Increasing tax exemption, says Finance Minister Nirmala Sitharaman
People with income upto 5 lakh don’t pay tax, the limit for which has now raised to Rs 7 lakh, announces the Finance Minister.
Micro enterprises with turnover upto 2 crore and professionals with turnover upto 50 lakh can avail the benefit of presumptive taxation, says the Finance Minister.
Indirect Tax proposals aim to promote exports, boost domestic manufacturing, enhance domestic value addition, encourage green energy and mobility, says Finance Minister Nirmala Sitharam.
A simplified tax structure reduces compliance burden and improves tax administration, says the FM
Propose to reduce the basic customs duty rates on goods other than textile and agriculture from 21 to 13, she adds.
- Basic customs duty on kitchen chimney increased from 7.5% to 15% and that on heat coils reduced from 20% to 15%.
To improve bank governance and enhance investors' protection, certain amendments to the Banking Regulation act, the Banking Companies Act and the Reserve Bank of India act are being proposed, says the Finance Minister.
One time new small savings scheme for women up to March 2025. A savings certificate will be made available for a 2-year period, she states.
This will offer deposit facility up to 2 lakhs in the name of a woman at fixed interest rate of 7.5% with partial withdrawal option
Govt to set up Gowardhan Scheme for promoting circular economy with total investment of Rs 10,000 crore, says the Finance Minister.
Senior citizen saving scheme limit enhanced to 30 lakh from 15 lakh, she adds.
We have formulated National Education Policy that facilitates job creation and employment, says Nirmala Sitharaman
30 skill India international centres to be established for youth for jobs, she adds.