Monthly Archives: October 2022

Budget LIVE Updates: Union Cabinet approves Budget 2023-24 ahead of Finance Minister Sitharaman’s speech

Tribune Web Desk

New Delhi, February 1

Finance Minister Nirmala Sitharaman on Wednesday raised the personal income tax rebate limit, doled out sops on small savings and announced one of the biggest hikes in capital spending in the past decade as she did a tight rope walk in the Budget between staying fiscally prudent and meeting public expectations in the year before general elections.

The personal income tax rebate limit has been increased to Rs 7 lakh from the fiscal year starting April 1 under the new tax regime from the previous Rs 5 lakh. Tax slabs have been cut to five from seven earlier. Also, the maximum income tax rate has been reduced to about 39 per cent from 42.7 per cent after a reduction in the highest surcharge to 25 per cent from 37 per cent.

Besides, the deposit limit for senior citizen savings schemes has been doubled to Rs 30 lakh and for Monthly Income Account Scheme to Rs 9 lakh. A new small savings scheme for women, offering 7.5 per cent interest rate on deposits of up to Rs 2 lakh for a tenor of 2 years, has been announced.

Sitharaman’s fifth straight budget comes at a time when the economy is slowing due to global headwinds and there is a need for increased spending on social sectors as well as ramping up incentives for local manufacturing.

She also announced customs duty relief on mobile phone components, as well as on capital goods for lithium batteries and other such items to boost green energy and exports.

This is the final full budget before the general elections in April/May next year. An interim budget, called vote on account, is to be presented in February next year and the new government will present the full budget sometime in July 2024.

For 2023-24, capital investment outlay has been increased steeply for the third year in a row by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of the GDP. This will be almost three times the outlay in 2019-20.

Since coming to power in 2014, Prime Minister Narendra Modi-led government has ramped up capital spending, including on roads and energy, while wooing investors through lower tax rates and labour reforms, and offering subsidies to poor households to clinch their political support.

“This Budget hopes to build on the foundation laid in the previous Budget, and the blueprint drawn for India@100,” Sitharaman said in her budget speech in Lok Sabha.

Indian economy, she said, is a “bright star” with the current 7 per cent GDP growth being the highest among all the major economies

Sitharaman said that despite a global slowdown because of the COVID-19 pandemic and the Russia-Ukraine war, the Indian economy was “on the right track”.

Total expenditure is seen rising 7.4 per cent to Rs 45 lakh crore. The government would target a budget deficit of 5.9 per cent of GDP in 2023-24, down from 6.4 per cent for the current year. That would entail a gross borrowing of Rs 15.43 lakh crore.

Sitharaman said the Budget for 2023-24 (April 2023 to March 2024), adopts seven priorities—inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector.

While the agriculture credit target has been increased to Rs 20 lakh crore with focus on animal husbandry, dairy and fisheries, the increased investment in infrastructure and productive capacity is aimed at having a multiplier impact on growth and employment.

Additional Rs 9,000 crore has been provided toward credit guarantee for medium and small enterprises.                

Railways has been provided a capital outlay of Rs 2.40 lakh crore—the highest ever and about 9 times the outlay made in 2013-14.

An Urban Infrastructure Development Fund (UIDF) will be established for the creation of urban infrastructure in Tier 2 and Tier 3 cities.

The Budget has also provided Rs 35,000 crore for energy transition and net zero objectives.

Battery Energy Storage Systems with capacity of 4,000 MwH will be supported with viability gap funding, Rs 20,700 crore will be spent in building a transmission system to evacuate 13 GW renewable energy from Ladakh.

The outlay for the affordable housing scheme, PM Awas Yojana, has been increased 66 per cent to Rs 79,000 crore.

Other highlights of the budget include reviving 50 additional airports, heliports and water aerodromes, and establishing a National Digital Library to make available quality books across languages, geographies and genres.

The income tax relief provided for individual taxpayers would be a 25 per cent reduction in tax outgo of an individual with an annual income of Rs 9 lakh as he or she would be required to pay only Rs 45,000 as against Rs 60,000 crore.

Similarly, an individual with an income of Rs 15 lakh would be required to pay only Rs 1.5 lakh or 10 per cent of his or her income, a reduction of 20 per cent from the existing liability of Rs 1,87,500, Sitharaman said.

“This will provide major relief to all taxpayers in the new regime,” she said.

Also, the Rs 50,000 standard deduction provided in the old tax regime has now been extended to the new tax regime.

The limit of Rs 3 lakh for tax exemption on leave encashment on retirement of non-government salaried employees will be increased to Rs 25 lakh.

The total revenue foregone from the reduction in direct and indirect taxes after accounting for a small gain from additional mobilisation will be Rs 35,000 crore annually.

“The narrower deficit forecast in the Union government budget for 2023-24 underscores the government’s commitment to longer-term fiscal sustainability and supports the economy amid high inflation and a challenging global environment,” Moody’s Investor Service said in its initial comments on the Budget.

Although the gradual fiscal consolidation trend is intact and will help to stabilise the government’s debt burden relative to nominal GDP, the high debt burden and weak debt affordability are constraints that offset India’s fundamental strengths, including its high growth potential and deep domestic capital markets, it said. — with PTI inputs

12:48 01 FebPromotion of tourism

Promotion of tourism will be taken up on a “mission mode” with active participation of states, convergence of government programmes, and public-private-partnerships, Finance Minister Nirmala Sitharaman announced in the Union Budget for 2023-24 on Wednesday.

In her speech, she also emphasised that the country offers “immense attraction” for domestic as well as foreign tourists.

12:32 01 FebIncome tax rebate limit up

Govt proposes to increase income tax rebate limit from Rs 5 lakh to Rs 7 lakh in new tax regime

An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000: FM Sitharaman.

No tax for income up to Rs 3 lakh; 5 pc tax on Rs 3-6 lakh; highest tax rate of 30 pc on income above Rs 15 lakh under new I-T regime: FM.12:18 01 FebMobile phone output

Mobile phone output rose from 5.8 crore units in 2014-15 to 31 crore units last fiscal

12:15 01 FebPAN will be used for common identifier for all digital systems of specified govt agencies

Finance Minister Nirmala Sitharaman said Permanent Account Number (PAN) will be used for common identifier for all digital systems of specified government agencies.

The move would help in further promoting ease of doing business in the country.

PAN is a 10-digit alphanumeric number allotted by the income tax department to a person, firm or entity. She also said that if MSMEs fail to execute contract, 95 per cent of performance security will be returned to small business as part of Vivad Se Vishwas scheme

.12:08 01 FebPradhan Mantri Aawas Yojana outlay hiked by 66% to Rs 79,000 cr

Finance Minister announced a 66 per cent hike in the outlay for the Pradhan Mantri Aawas Yojana (PMAY) to Rs 79,000 crore.

The scheme envisages providing houses for rural as well as urban poor and the massive hike in its outlay holds significance keeping in mind the fact that this is the last proper Budget of the NDA government before the 2024 Lok Sabha elections.

Also as many as nine states go to polls this year

.12:05 01 FebFM announces scheme to improve socio-economic condition of vulnerable tribes

Finance Minister proposed to launch a scheme to improve the socio-economic condition of particularly vulnerable primitive tribal groups.

An amount of Rs 15,000 crore will be made available to implement the Prime Minister Particularly Vulnerable Tribal Groups (PM-PVTG) development mission in next three years under the development action plan for Scheduled Tribes, she said while presenting the Union Budget for 2023-24 in Parliament.

This will saturate PVTG families and habitations with basic facilities such as safe housing, clean drinking water and sanitation, improved access to health, education, nutrition, road and telecom connectivity and sustainable livelihood opportunity, she said

.11:59 01 FebIndia’s G-20 presidency unique opportunity to strengthen its role in world economic order

India’s ongoing presidency of the G-20 grouping is a unique opportunity to strengthen the country’s role in the world economic order when countries across the globe are facing various challenges, Finance Minister Nirmala Sitharaman said on Wednesday.

India assumed the presidency of the influential bloc G-20 at its annual summit in Bali in November with a promise of striving to ensure that the grouping acts as a global prime mover to envision new ideas and accelerate collective action to deal with pressing challenges.

India is hosting a series of events and meetings ahead of the G-20 summit later this year.

India officially assumed the G-20 presidency on December 1

.11:53 01 FebIndia has made significant progress in many SDGs

India has made significant progress in many Sustainable Development Goals (SDGs) and the per capita income has increased to Rs 1.97 lakh.

Finance Minister Nirmala Sitharaman said the Indian economy has increased in size from being 10th largest to fifth largest in the world in the last nine years.

The efforts of the government since 2014 have ensured better quality of life for citizens of the country, Sitharaman added.

According to the Centre for Science and Environment’s ‘State of India’s Environment Report 2022’, the country’s overall SDG score was 66 out of 100

.11:48 01 Feb47.8 cr Jan Dhan accounts opened

As many as 47.8 crore Jan Dhan accounts have been opened so far, a scheme which was launched in 2014 as a national mission for financial inclusion.

Finance Minister Nirmala Sitharaman said the National Rural Livelihood Mission has achieved remarkable success by mobilising rural women into 1 lakh SHGs (self help groups).

The Jan Dhan Yojana was announced by Prime Minister Narendra Modi in his Independence Day address in 2014, and it was launched on August 28 in the same year

.11:46 01 FebBudget adopts seven priorities to guide India through Amrit Kaal

Finance minister Nirmala Sitharaman said that the Budget adopts seven priorities to guide India through the Amrit Kaal.

“The budget adopts following seven priorities — inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector,” she said.

Amrit Kaal is described by the government as the 25-year period culminating in the centenary of India’s independence.

11:42 01 FebCapital outlay of Rs 2.40 lakh crore for railways

PM Primitive Vulnerable Tribal Group scheme to benefit 3.5 lakh tribals: FM.

Capital outlay of Rs 2.4 lakh cr provided for Railways; highest-ever allocation since 2013-14: FM.

FM says states and cities will be encouraged to take up urban planning.11:37 01 FebDecentralised storage capacity to help farmers to be set up

Govt to provide Rs 5,300 cr assistance to drought-prone central region of Karnataka: FM Sitharaman.

PM Awas Yojana outlay hiked by 66 pc to Rs 79,000 cr: FM Sitharaman.

38,800 teachers will be hired for Ekalavya Model Residential Schools: FM.

Pradhan Mantri Primitive Vulnerable Development Commission being launched; Rs 15,000 cr earmarked for next 3 years: FM

Govt plans to set up massive decentralised storage capacity to help farmers.11:33 01 FebMade cash transfer of Rs 2.2 lakh cr under PM-KISAN scheme: Sitharaman

To enhance yield of extra long staple cotton, government will adopt a cluster-based and value chain approach: FM.

Four transformative opportunities can be used be in Amrit Kaal for enhancing economic empowerment: FM Sitharaman.

Govt to support Hyderabad-based millet institute as centre of excellence: FM.

Govt to launch a Rs 2,200 crore Aatmanirbhar clean plan programme: FM Sitharaman:

National cooperative database is being created to map cooperative societies: FM Sitharaman.

New programme to promote research in pharmaceuticals: FM Sitharaman.11:26 01 FebOur mission is to achieve knowledge-driven economy: FM

Govt efforts since 2014 have ensured better quality of life for citizens of the country, says FM Sitharaman.

Our mission is to achieve knowledge-driven economy: FM

Govt made cash transfer of Rs 2.2 lakh crore under PM-KISAN: FM Sitharaman.

National Rural Livelihood Mission has achieved remarkable success by mobilising rural women into 1 lakh SHGs: FM.

9.6 cr LPG connections, 220 cr Covid vax for 102 cr people given, 47.8 cr JanDhan accounts opened: FM Sitharaman.

Four transformative opportunities can be used be in Amrit Kaal for enhancing economic empowerment: FM

11:15 01 FebPer capita income has increased to Rs 1.97 lakh: FM

Indian economy has increased in size from being 10th to 5th largest in last nine years: FM Sitharaman

We have made significant progress in many Sustainable Development Goals (SDGs), says FM.

Per capita income has increased to Rs 1.97 lakh: FM Sitharaman

.11:12 01 FebIndia’s growth at 7 pc

India’s growth at 7 pc in current fiscal highest among major economies; Indian economy on right track: Nirmala Sitharaman.

The world appreciates India’s achievements

Finance minister says this budget hopes to build on foundation of previous budget and blue print for India@100.

In 75th year of Independence, world has recognised India as a bright star: FM. 

We ensured that no one went hungry during pandemic by providing free foodgrains to 80 cr poor people: FM Sitharaman

.11:07 01 FebFM begins Budget speech

Indian economy on the right track, and heading towards a bright future: Finance Minister Nirmala Sitharaman 

No tax would be levied on annual income of up to Rs 7 lakh under the new tax regime.

Rs 50,000 standard deduction to taxpayers under the new regime, where assessees cannot claim deductions or exemptions on their investments.

Under the revamped concessional tax regime:

1) No tax would be levied for income up to Rs 3 lakh.

2) Income between Rs 3-6 lakh would be taxed at 5 per cent

3) Rs 6-9 lakh at 10 per cent

4) Rs 9-12 lakh at 15 per cent

5) Rs 12-15 lakh at 20 per cent

6) Rs 15 lakh and above will be taxed at 30 per cent.

tweaked the concessional tax regime, which was originally introduced in 2020-21, by hiking the tax exemption limit by Rs 50,000 to Rs 3 lakh and reducing the number of slabs to five.

MoD outlay 13.18% of Union Budget

• Rs 5,93,537-cr MoD Budget sees hike of 13.01% over present fiscal
• Rs 1,62,600 cr capital for new defence acquisitions
• Rs 9,500 cr allocated to border roads and bridges
• Rs 12, 850 cr earmarked for research & development
• Rs 90,000 cr provided for operational readiness

CAPITAL INVESTMENT OUTLAY INCREASED BY 33% TO Rs. 10 LAKH CRORE

EFFECTIVE CAPITAL EXPENDITURE AT 4.5% OF GDP

FISCAL DEFICIT ESTIMATED TO BE 5.9 % OF GDP IN BE 2023-24

REAL GDP TO GROW AT 7% IN FY2022-23

EXPORTS TO GROW AT 12.5% IN FY 2023

ATMANIRBHAR CLEAN PLANT PROGRAM WITH OUTLAY OF ₹2200 CRORE TO BE LAUNCHED TO BOOST AVAILABILITY OF QUALITY PLANTING MATERIAL FOR HIGH VALUE HORTICULTURAL CROPS

157 NEW NURSING COLLEGES TO BE ESTABLISHED

OUTLAY FOR PM AWAS YOJANA ENHANCED BY 66% TO OVER RS. 79,000 CRORE

HIGHEST EVER CAPITAL OUTLAY OF Rs. 2.40 LAKH CRORE PROVIDED FOR  RAILWAYS

URBAN INFRASTRUCTURE DEVELOPMENT FUND (UIDF) TO BE ESTABLISHED THROUGH USE OF PRIORITY SECTOR LENDING SHORTFALL

500 NEW ‘WASTE TO WEALTH’ PLANTS UNDER GOBARDHAN SCHEME TO BE ESTABLISHED AT TOTAL INVESTMENT OF Rs 10,000 CRORE

10,000 BIO-INPUT RESOURCE CENTRES TO BE SET-UP, CREATING NATIONAL-LEVEL DISTRIBUTED MICRO-FERTILIZER AND PESTICIDE MANUFACTURING NETWORK

MANTRI KAUSHAL VIKAS YOJANA 4.0 TO BE LAUNCHED

UNION BUDGET 2023-24 PROVIDES SUBSTANTIAL RELIEF FOR PERSONAL INCOME TAX

NEW SLABS ANNOUNCED UNDER THE NEW TAX REGIME

RESIDENT INDIVIDUAL WITH TOTAL INCOME UPTO ₹ 7 LAKH WILL NOT HAVE TO PAY ANY INCOME TAX UNDER NEW TAX REGIME

STANDARD DEDUCTION OF ₹ 50,000 WILL ALSO BE AVAILABLE TO SALARIED INDIVIDUALS UNDER THE NEW TAX REGIME

NEW TAX REGIME FOR INDIVIDUAL AND HUF WILL BE THE DEFAULT REGIME

LIMIT FOR TAX EXEMPTION ON LEAVE ENCASHMENT ON RETIREMENT OF NON-GOVERNMENT SALARIED EMPLOYEES INCREASED TO ₹ 25 LAKH

SLEW OF PROPOSALS ANNOUNCED FOR THE COOPERATIVE SECTOR

INDIRECT TAX PROPOSALS AIM TO PROMOTE EXPORTS, BOOST DOMESTIC MANUFACTURING, ENHANCE DOMESTIC VALUE ADDITION, ENCOURAGE GREEN ENERGY AND MOBILITY

NUMBER OF BASIC CUSTOMS DUTY RATES ON GOODS, OTHER THAN TEXTILES AND AGRICULTURE, REDUCED FROM 21 TO 13

New Delhi, February 1

Union Finance Minister Nirmala Sitharaman on Wednesday tweaked the slabs to provide some relief to the middle class by announcing that no tax would be levied on annual income of up to Rs 7 lakh under the new tax regime.

She also allowed a Rs 50,000 standard deduction to taxpayers under the new regime, where assessees cannot claim deductions or exemptions on their investments.

Under the revamped concessional tax regime:

1) No tax would be levied for income up to Rs 3 lakh.

2) Income between Rs 3-6 lakh would be taxed at 5 per cent

3) Rs 6-9 lakh at 10 per cent

4) Rs 9-12 lakh at 15 per cent

5) Rs 12-15 lakh at 20 per cent

6) Rs 15 lakh and above will be taxed at 30 per cent.

She also tweaked the concessional tax regime, which was originally introduced in 2020-21, by hiking the tax exemption limit by Rs 50,000 to Rs 3 lakh and reducing the number of slabs to five.

In the Budget for 2023-24, Sitharaman said currently individuals with a total income of up to Rs 5 lakh do not pay any tax due to rebate under both the old and new regimes.

“It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to Rs 7 lakh,” Sitharaman said.

She further said that under the new personal income tax regime, the number of slabs would be reduced to five.

“I propose to change the tax structure in this regime by reducing the number of slabs to five and increasing the tax exemption limit to Rs 3 lakh,” Sitharaman said.

“I propose to extend the benefit of standard deduction to the new tax regime. Each salaried person with an income of Rs 15.5 lakh or more will thus stand to benefit by Rs 52,500,” Sitharaman said.

The government in Budget 2020-21 brought in an optional income tax regime, under which individuals and Hindu Undivided Families (HUFs) were to be taxed at lower rates if they did not avail specified exemptions and deductions, like house rent allowance (HRA), interest on home loan, investments made under Section 80C, 80D and 80CCD. Under this, total income up to Rs 2.5 lakh was tax-exempt.

Currently, a 5 per cent tax is levied on total income between Rs 2.5 lakh and Rs 5 lakh, 10 per cent on Rs 5 lakh to Rs 7.5 lakh, 15 per cent on Rs 7.5 lakh to Rs 10 lakh, 20 per cent on Rs 10 lakh to Rs 12.5 lakh, 25 per cent on Rs 12.5 lakh to Rs 15 lakh, and 30 per cent on above Rs 15 lakh.

The scheme, however, has not gained traction as in several cases it resulted in higher tax burden.

With effect from April 1, these slabs will be modified as per the Budget announcement. 

PTI

New Delhi, February 1

Mobile phones and TV sets manufactured in India would become cheaper with Finance Minister Nirmala Sitharaman announcing cuts in Basic Customs Duty (BCD) on import of their components but smokers would have to pay more as the government has increased taxes.

Fully imported cars, including electric vehicles, and those assembled in India with imported parts will also become costlier with the finance minister increasing customs duty.

Following is a list of items that will become costlier:    

*Cigarettes

*Kitchen chimney

*Imported bicycles and toys

*Fully imported cars and electric vehicles   

*Imitation jewellery

*Compounded rubber

*Naphtha

However, certain goods will become cheaper as the government has slashed the customs duty. These are:

*Domestically-manufactured TV sets

*Shrimp feed

*Fish lipid oil used in manufacturing aquatic feed

*Seeds for lab-grown diamonds

*Machinery for manufacturing lithium ion cell to be used in electric vehicles. 

PTI

New Delhi, February 1

Union Finance Minister Nirmala Sitharaman on Wednesday proposed to double the deposit limit for Senior Citizen Savings Scheme to Rs 30 lakh and Monthly Income Account Scheme to Rs 9 lakh.

In her Budget Speech, the minister also announced a new small savings scheme for women.

“The maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from Rs 15 lakh to Rs 30 lakh,” the minister said in her 87-minute-long speech.

She also proposed that the maximum deposit limit for Monthly Income Account Scheme will be enhanced from Rs 4.5 lakh to Rs 9 lakh for a single account and from Rs 9 lakh to Rs 15 lakh for a joint account. 

Announcing a new ‘Azadi Ka Amrit Mahotsav Mahila Samman Bachat Patra’, Sitharaman said a one-time new small savings scheme, Mahila Samman Savings Certificate, would be made available for a two-year period up to March 2025.

“This will offer deposit facility up to Rs 2 lakh in the name of women or girls for two years at fixed interest rate of 7.5 per cent with partial withdrawal option,” she said.

The minister also announced that an integrated IT portal would be established for investors to reclaim unclaimed shares and unpaid dividends from the Investor Education and Protection Fund Authority with ease. 

Tribune News Service

Ajay Banerjee

New Delhi, February 1

Aiming to be self-reliant in military equipment technology and to tackle rising threats from China along the Line of Actual Control, the Government today affected a hike in allocations for modernisation of military, infrastructure in the Himalayas and military projects in the proposed budget for 2023-24 presented in Parliament.

Overall, the budget for the Ministry of Defence, including the capital outlay meant for new weapons and projects, the salaries and expenses of the three armed forces, coast guard, DRDO, the Border Roads Organisation and pensions is Rs 5,93,537 crore.

It represents a Rs 68,371 crore or 13.01 percent hike over the Rs 5,25,166 crore budget estimates of the present fiscal ending March 31, 2023.

The ‘capital head’ of the defence budget for the year 2023-24 will be Rs 1,62,600 crore. This represents an increase of Rs 10,231 crore or a 6.7 percent hike over the allocation of Rs 1,52,369 crore for the present fiscal.

Pensions accounts for Rs 1,38,205 crore of the MoD budget and represent a 15.46  percent hike over this fiscal’s allocation of Rs 1,19,696 crore.

The increase caters to the upward revision of ‘One Rank, One Pension’ (OROP) for retired soldiers effected in December last year. Part of the arrears are also be paid during the next fiscal hence the hike.

The capital allocation for the IAF is Rs 57,132 crore of which Rs 15,721 crore are earmarked for aircraft and aeroengines. The Navy gets Rs 52,804 crore of which Rs 24,200 crore is for the naval fleet.

The Army gets Rs 37,231 crore as capital. These funds are for sourcing new weapons equipment planes, copters, tanks, guns, etc.

Capital Budget of Border Roads Organisation (BRO) has been increased. It will spend Rs 4500 crore in making bridges roads and tunnels in the Himalayas. Another Rs 5,000 crore will be spent by BRO from the Central Road and Infrastructure Fund for infrastructure in the Himalayas.

Also the Research and Development gets an allocation of Rs 12,850 crore. Of this, startups and academia private industry will be allowed to claim 25 per cent of defence R&D budget. Private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with DRDO and other organisations.

Aiming to be self-reliant in military equipment technology and to tackle rising threats from China along the Line of Actual Control, the government today effected a hike in allocations for modernisation of military and infrastructure in the Himalayas in the proposed Budget for 2023-24 presented in Parliament.

Tribune News Service

Ajay Banerjee

New Delhi, February 1

Aiming to be self-reliant in military equipment technology and to tackle rising threats from China along the Line of Actual Control, the government today effected a hike in allocations for modernisation of military and infrastructure in the Himalayas in the proposed Budget for 2023-24 presented in Parliament.

About 13.18 per cent of the country’s Budget has been allocated to the Ministry of Defence. The MoD’s allocation, including the capital outlay meant for new weapons and projects, salaries and expenses of the three armed forces, Coast Guard, DRDO, Border Roads Organisation (BRO) and pensions is Rs 5,93,537 crore.

It is a Rs 68,371 crore or 13.01 per cent hike over the Rs 5,25,166 crore Budget estimates of the present fiscal ending March 31, 2023.

The ‘capital budget’ of the MoD allocation for the year 2023-24 will be Rs 1,62,600 crore. This represents an increase of Rs 10,231 crore or a 6.7 per cent hike over the allocation of Rs 1,52,369 crore for the present fiscal. “The increase in the capital budget since 2019-20 has been Rs 59,200 crore (57%),” the MoD said.

Notably, operational allocation, which is separate from the capital budget, is Rs 90,000 crore. The MoD is expected to close critical gaps in combat capabilities and equip the forces in terms of ammunition, and sustenance of weapons and assets.

Pensions accounts for Rs 1,38,205 crore of the MoD Budget and represents a 15.46 per cent hike over this fiscal’s allocation of Rs 1,19,696 crore.

The increase caters to the upward revision of One Rank One Pension (OROP) for retired soldiers effected in December last year. A part of the arrears will be paid during the next fiscal, hence the hike

The capital allocation for the IAF is Rs 57,132 crore, of which Rs 15,721 crore are earmarked for aircraft and aero-engines. The Navy gets Rs 52,804 crore, of which Rs 24,200 crore is for the naval fleet. The Army gets Rs 37,231 crore as capital. These funds are for sourcing new weapons, equipment, planes, copters, tanks, guns, etc.

The capital budget of the BRO has been increased. It will spend Rs 4,500 crore in making bridges, roads and tunnels in the Himalayas. Another Rs 5,000 crore will be spent by the BRO from the Central Road and Infrastructure Fund for infrastructure in the Himalayas.

Also Research and Development gets an allocation of Rs 12,850 crore. Of this R&D budget, startups and private industry will be allowed to claim 25 per cent of the amount. Private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with the DRDO and other organisations.

MoD outlay 13.18% of Union Budget

• Rs 5,93,537-cr MoD Budget sees hike of 13.01% over present fiscal
• Rs 1,62,600 cr capital for new defence acquisitions
• Rs 9,500 cr allocated to border roads and bridges
• Rs 12, 850 cr earmarked for research & development
• Rs 90,000 cr provided for operational readiness

The income tax (IT) cuts and slabs proposed in Budget-2023 have come as a pleasant surprise for the salaried class. This move had eluded them ever since the BJP-led dispensation wrested power in 2014. The denial had been pinching them hard, given the spiralling cost of living and inflation. The bigger slices of salaries ending up in the hands of the middle class should enhance their spending power and propel the economy forward.

However, the catch is that these proposals are applicable only to those opting for the new tax regime which was introduced in 2021, even as the old one has also continued. The plus point of the old system is the offering of tax deductions for such investments as insurance, PF and mutual funds, HRA, house/education loan, donations, etc. While the new tax regime does not offer this advantage, its allure lies in its lower tax rates imposed on comparable income slabs. Thus, being beneficial selectively, the new scheme has not enticed many taxpayers. The IT rejig is partly aimed at course correction.

So, who should opt for what? After considering the basic exemption limit which has been hiked to Rs 3 lakh from Rs 2.5 lakh, the employees who should definitely go for the new tax regime are those earning up to Rs 7 lakh for they are fully exempt from tax as compared to the Rs 5-lakh limit for nil tax in the old scheme. With its lower tax rates for the other income slabs below Rs 15 lakh, the new taxation method should also appeal to workers hard-pressed to make tax-saving investments. But those going for such savings will have to, as per their investment capacity, calculate and weigh which of the two schemes leaves them with more salary in hand. For those earning over Rs 15 lakh, the FM has offered in the new scheme a standard deduction of Rs 52,500; and a reduction in highest surcharge rate from 37% to 25%, substantially benefiting the ultra-rich. Laudably, there’s a bonanza for retiring private sector employees: a hike in tax exemption on leave encashment on retirement to Rs 25 lakh from Rs 3 lakh. Every penny counts!

Air Marshal AP Singh today took over as Vice-Chief of the Indian Air Force (IAF). He laid a wreath at the National War Memorial to honour armed forces personnel, who made the supreme sacrifice for the nation.

New Delhi, February 1

Air Marshal AP Singh today took over as Vice-Chief of the Indian Air Force (IAF). He laid a wreath at the National War Memorial to honour armed forces personnel, who made the supreme sacrifice for the nation.

An alumnus of the National Defence Academy, Defence Services Staff College and National Defence College, the Air Marshal was commissioned into the fighter stream of the IAF on December 21, 1984. He is a qualified flying instructor and experimental test pilot with more than 5,000 hours of flying experience.

He was also Project Director (Flight Test) at the National Flight Test Centre looking after the flight testing of the Light Combat Aircraft (Tejas). He has succeeded Air Marshal Sandeep Singh, who retired yesterday after more than 39 years of service.

Meanwhile, Marshal RGK Kapoor today assumed charge of the Central Air Command. Air Marshal Kapoor was commissioned into the fighter stream of the IAF in June 1986.

He was Assistant Chief of the Air Staff Operations and Space when the Balakot air strike took place in February 2019. He has also served as India’s Defence and Air Attaché at the Indian embassy in Washington. — TNS

Has 5,000 hours of flying experience

• Air Marshal AP Singh was commissioned into the fighter stream of the IAF on December 21, 1984
• The officer is a qualified flying instructor and experimental test pilot with more than 5,000 hours of flying experience
• The Air Marshal is a recipient of the Param Vishisht Seva Medal and Ati Vishisht Seva Medal

Updation hassle to end | PAN ‘common identifier’ for digital systems

Tribune News Service

New Delhi, February 1

In addition to the rejig in personal income tax slabs, the Union Budget imparted another feel good factor by promising to reduce red tape. These would include an end to harassment for KYC (Know Your Customer) updation, making PAN a “common identifier for all digital systems of specified government agencies through a legal mandate” and easier claim to own funds impounded and pooled by regulators.

The KYC process will be simplified by adopting a ‘risk-based’ instead of the ‘one-size-fits-all’ approach, the Finance Minister announced. However, KYC rules are already ‘risk-based’ as per the RBI which has directed an update once every two years for high-risk customers, once every eight years for medium-risk customers and once every 10 years for low-risk customers. If there is no change in status, address or identity, low-risk customers can also update KYC through simple self-certification. Sitharaman also announced that a “one- stop solution for reconciliation and updating of identity and address of individuals maintained by various government agencies regulators and regulated entities will be established using DigiLocker service and Aadhaar as foundational identity’’. However, it is not clear whether the old DigiLocker will continue or a new one will be required. For businesses, a law would enable the use of PAN as the common identifier for all digital systems of specified government agencies.

Also, an integrated IT portal would be established for investors to reclaim unclaimed shares and unpaid dividends from the Investor Education and Protection Fund Authority (IEPFA) with ease. It is not known whether this means that the existing online system for such a purpose will be revamped or replaced by a new one. At the same time, this assurance remains to be extended to reclaiming bank deposits, PF, post office deposits, National Savings Schemes and mutual funds.

The Budget announced two “Vivad se Vishwas” schemes for MSMEs. One will return 95 per cent of the forfeited amount in case of failure to execute contracts during the Covid period and another is a voluntary settlement scheme where there is a court case.