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Thursday, 01 Feb 2024
easynomics

What the budget has for CXOs

Hello and welcome to your personalised summary of the 2024-2025 Interim Budget. The budget has a host if interesting information for CXOs.

1. Blue Economy 2.0: Promoting Climate Resilient Activities

The blue economy presents immense opportunities for sustainable growth. To promote climate resilience in the blue economy, a scheme for restoration and adaptation measures, as well as coastal aquaculture and mariculture, will be launched. This integrated and multi-sectoral approach will contribute to the growth of the sector while ensuring environmental sustainability.

2. Comprehensive Development of Tourist Centers

India's economic strength has made it an attractive destination for business and conference tourism. To further enhance tourism, comprehensive development of iconic tourist centers will be encouraged. A framework for rating these centers based on quality of facilities and services will be established, and long-term interest-free loans will be provided to states for financing such development. This presents an excellent opportunity for CEOs to explore partnerships and investments in the tourism sector.

3. Promoting Investments: FDI Inflow and PMMSY

India has witnessed a golden era of foreign direct investment (FDI) inflow, with USD 596 billion recorded during 2014-23, twice the inflow during 2005-14. To encourage sustained foreign investment, the government is creating a robust gateway for global capital and financial services. Additionally, the Pradhan Mantri Matsya Sampada Yojana (PMMSY) aims to enhance aquaculture productivity, double exports, and generate employment opportunities. CEOs can explore investment opportunities in these sectors to leverage India's growth potential.

4. Technological Changes: Opportunities for Innovation and Entrepreneurship

New-age technologies and data are transforming lives and businesses, creating economic opportunities and facilitating the provision of high-quality services at affordable prices. India, with its focus on innovation and entrepreneurship, is showing solutions at the global level. CEOs can tap into these opportunities by embracing technology and fostering innovation within their organizations.

5. Global Context: Emerging Opportunities and Challenges

The global landscape is evolving, with complex geopolitical affairs, redefined globalization, and a new world order emerging after the Covid pandemic. India, as the G20 Presidency, has successfully navigated through these challenges and built consensus on global solutions. The recently announced India-Middle East-Europe Economic Corridor presents a strategic and economic game-changer. CEOs should stay informed about these global trends and explore opportunities for collaboration and growth.

Tax Updates for Individual Tax Payers

For individuals other than those falling under specific categories:

- Total income up to Rs. 2,50,000: Nil tax

- Total income between Rs. 2,50,000 and Rs. 5,00,000: 5% of the amount exceeding Rs. 2,50,000

- Total income between Rs. 5,00,000 and Rs. 10,00,000: Rs. 12,500 plus 20% of the amount exceeding Rs. 5,00,000

- Total income exceeding Rs. 10,00,000: Rs. 1,12,500 plus 30% of the amount exceeding Rs. 10,00,000

For individuals aged 60 years or more but less than 80 years:

- Total income up to Rs. 3,00,000: Nil tax

- Total income between Rs. 3,00,000 and Rs. 5,00,000: 5% of the amount exceeding Rs. 3,00,000

- Total income exceeding Rs. 5,00,000: Rs. 10,000 plus 20% of the amount exceeding Rs. 5,00,000

For individuals aged 80 years or more:

- Total income up to Rs. 5,00,000: Nil tax

- Total income between Rs. 5,00,000 and Rs. 10,00,000: 20% of the amount exceeding Rs. 5,00,000

- Total income exceeding Rs. 10,00,000: Rs. 1,00,000 plus 30% of the amount exceeding Rs. 10,00,000

Surcharge on Income Tax:

- Surcharge is applicable on the income tax amount calculated as per the above rates.

- The surcharge rates vary based on the individual's residency status and income level.

- The surcharge ranges from 10% to 37% for non-residents and individuals with different income brackets.

Other Important Updates:

- e-Verification scheme: The authorities have introduced an e-Verification scheme to collect accurate income information and reduce tax evasion. This scheme aims to ensure comprehensive determination of income.

- PAN as Business Identification Number (BIN): PAN is now being leveraged as the BIN for registration purposes in various government departments and services. This integration aims to streamline processes and enhance efficiency.

- Integration of PAN with Aadhaar: PAN and Aadhaar integration has been carried out to facilitate de-duplication and ensure accurate identification. As of December 31, 2023, a total of 58.76 crore PANs are linked with Aadhaar.

- Integrated e-Filing and Centralised Processing Center 2.0 (CPC 2.0) project: The CPC 2.0 project aims to provide a better e-filing experience, ease of compliance, and faster processing of Income Tax Returns (ITRs). As of December 31, 2023, 8.18 crore ITRs have been filed for AY 2023-24, marking a 9% increase compared to the previous year.

- Tax Information Network 2.0: The introduction of TIN 2.0 has enabled real-time credit of taxes and faster refunds to taxpayers' bank accounts. Till November 27, 2023, 6 crore challans involving an amount of Rs. 12.54 lakh crores have been processed.

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