Budget Reaction – Taxation, Personal Finance & Stock Market
Amit Gupta, MD, SAG Infotech
45% of ITRs are completed within 24 hours, and the Common ITR form will be available soon. Furthermore, to enhance the IT grievance redressal mechanism, and to increase the presumptive taxes limitations at Sec 44AD – Rs.3 crore and Sec 44ADA – Rs.75 lakhs. Income tax incentives for businesses with Startups have been extended by a year till 2024. – Incorporation Date – From 31.3.2023 to 31.3.2024 – 80IAC. Small Income Tax appeals will be handled by 100 joint commissioners. Furthermore, startups can carry forward their lost benefit for 7 to 10 years.
The refund has been enhanced to Rs 7 lakh under the new tax scheme. The new information technology system will act as the default tax regime. Tax assessors will still be able to choose from the prior regime. Salaried and pensioners: the new system’s standard deduction for taxable income exceeding Rs.15.5 lakhs is Rs.52,500. The new system will decrease the six income categories to five: basic exemption up to three lacs, 3-6 lakh 5%, 6-9 lakh 10%, and 9-12 lakh 15%. 12-15 lakhs are 20%, whereas 15 lakhs or over is 30%.
Siddharth Maurya, Resource Specialist – Fund Management.
The Union Budget 2023-24 is more focused on reviving domestic demand and public investments to propel growth as the world is gripping the fear of a possible recession. The announcements made were mostly in line with the market expectations like a focus on job creation, increased spending on infrastructure, reigning in the deficit, and bringing the economy back on track with few misses. However, the budget was muted on any direct relief to the investors from STT or other taxes levied on capital gains. The fiscal deficit target has been lowered to 5.9 in 2023-24 to achieve the target of 4.5 percent in 2025-26 has boosted the investors’ confidence. percent from 6.4 percent The budget is pro-growth and we expect markets to remain strong in coming sessions.