Budget 2023: What industry leaders said on income-tax related changes?
2 min read . Updated: 01 Feb 2023, 02:01 PM IST
PremiumUnion Finance Minister Nirmala Sitharaman on Wednesday presented the Budget 2023.
Union Finance Minister Nirmala Sitharaman on Wednesday presented the Budget 2023. She has made various announcements on personal finance, income tax, employment opportunities, etc. The finance minister concluded the budget speech by announcing five personal income tax-related changes.
The government will raise its capital expenditure by 33% to 10 trillion rupees ($122.29 billion) in the next fiscal year, the finance minister said on Wednesday, as Prime Minister Narendra Modi tries to create jobs ahead of a general election.
In addition, the average processing time for income tax returns has been reduced from 93 days to 16 days, the minister said.
On personal income tax, the FM announced that "Tax for income of ₹0- ₹3 lakh is nil, for income above ₹3 lakh and up to ₹5 lakh will be taxed at 5 per cent, for income of above ₹6 lakh and up to ₹9 lakh will be taxed at 10 per cent and for income above ₹12 lakh and up to ₹15 lakh to be taxed at 20 per cent and above 15 lakh at ₹30 per cent."
Budget 2023: What industry leaders said on income-tax related changes
Archit Gupta, Founder and CEO, Clear
“New IT return to form for easier filing. Tax relief to customers whose cash receipt is 5%. This will allow several businesses with turnover up to ₹3Cr ( from 2Cr) to opt for presumptive taxation, a simpler regime AS available under section 44AD. Similarly, professionals can opt for presumptive taxation where receipts are up to ₹75L (up from 50L) under section 44ADA. This comes as a relief and simpler tax filing and much lower taxes for businesses and professionals covered. Those speculating in property for capital gains will now face a maximum exemption cap of ₹10 crores. Benefits of cap gain exemptions under sections 54 and 54G, will not be available for cap gains in excess of ₹10 crore."
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 from 7 to 10 years."
“The refund has been enhanced to ₹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 is 20%, whereas 15 lakhs or over is 30%."
