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January 25, 2023 / 05:19 PM IST

Budget 2023 expectations highlights: What could change for taxpayers and investors next month

Budget 2023 expectations highlights: Increasing tax exemption in this Budget, according to experts, will provide relief to the lower-earning class consumers since they are facing challenges such as high inflation leading to lower savings, increasing interest rates have increased the monthly EMIs for home loans and other loans, and higher fuel prices have impacted the household budget. Tweaking the slab rates and providing relief will lead to an increase in disposable income and boost consumption.

Budget 2023 highlights: The FM can bring another tax amnesty proposal on the lines of Vivad se Vishwas scheme to help reduce litigation burden and aid revenue collection in the next fiscal.
Taxpayers who are embroiled in litigations and appeals could be asked to pay the disputed amount along with 10-20% penalty to settle the cases, reports said. It may propose amnesty with a penalty of 10 percent on the disputed tax amount if the matter is pending with the Commissioner of Income-Tax (Appeals).


populist Budget?

The chances of Nirmala Sitharaman going for a blatant populist budget looks bleak amid moderating tax revenue, high committed revex, and market loans, Emkay Global Financial Services has said in a report.

On the revenue side, lower tax buoyancy could be partly countered by higher RBI dividend and still-healthy assumption of divestment proceeds.

Emkay says Budget faces acute policy trade-offs between nurturing a nascent growth recovery and diminishing fiscal space with challenging debt dynamics.

Rationalised TDS, more tax benefits
The Budget may give a more rationalised TDS framework to reduce the compliance burden for taxpayers, apart from a revamped concessional tax regime by providing additional benefits like standard deduction. Tax experts believe, Nirmala Sitharaman may provide some respite to low- and mid-income taxpayers with annual income up to Rs 20 lakh on the personal income tax side.

Uniformity in capital gains rates

There are chances of 'green' incentives to be brought in such as tax exemption to interest from green bonds and rationalisation of capital gains rates and holding periods could be expected in the Budget, to be unveiled in Parliament on February 1.

Budget expectations blog

  • Budget 2023 expectations highlights: What could change for taxpayers and investors next month
  • January 23, 2023 / 12:09 PM IST

    Budget 2023 expectations live updates: Tax sops for seniors likely

    SBI in a report has pushed for an increase in the threshold for interest exemption from the current Rs 50,000 to Rs 75,000-Rs 1 lakh for senior citizens. Under 80TTB interest income from deposits by senior citizen (Savings bank accounts, fixed deposits, recurring deposit accounts) up to Rs 50,000 is exempted from income tax. This threshold may be increased to Rs 75,000 / Rs 1 lakh which still will have much lower fiscal cost

  • January 23, 2023 / 11:22 AM IST

    Budget 2023 expectations live: India to borrow record $198 bn
    Centre will borrow a record $198 billion in the fiscal year to March 2024, according to a Reuters poll of economists, who said infrastructure spending and fiscal discipline ought to be its highest budget priorities. India's gross indebtedness has more than doubled in the past four years as Prime Minister Narendra Modi's government has spent heavily to cushion the economy from the effects of the COVID-19 pandemic and to provide relief to the poor.

  • January 23, 2023 / 10:36 AM IST

    Budget 2023 expectations live: Centre has planned for a Rs 65,000 crore divestment target in FY23, however, a significant portion was missed because of unfavourable market conditions, triggered by worsening economic scenario around the world. The government is expected to scale down the disinvestment target to around Rs 40,000 crore for FY24 since it is challenging to divest stakes in the public sector undertakings and the last sale in 2022 did not meet the expectations. --- Anil Rego of Right Horizons.

  • January 23, 2023 / 08:29 AM IST

    Budget 2023 expectations live udpates: No dough for PSBs?
    Centre is unlikely to announce capital infusion for public sector banks (PSBs) in the upcoming Budget as their financial health has improved significantly and they are on track to earn a combined profit of Rs 1 lakh crore. Their capital adequacy ratio is much above the regulatory requirement and varies between 14-20 percent. To augment their resources, banks are raising growth funds from the market and also by selling their non-core assets, a report said. The government last provided capital support to banks in 2021-22. It had earmarked Rs 20,000 crore for the recapitalisation of PSBs through supplementary demands for grants. The government infused Rs 3,10,997 crore to recapitalise banks during the last five financial years i.e., from 2016-17 to 2020-21, out of which Rs 34,997 crore were sourced through budgetary allocation and Rs 2,76,000 crore through issuance of recapitalisation bonds to these banks.

  • January 23, 2023 / 08:17 AM IST

    Budget 2023 expectations live updates: Market sees Budget 2023 Vande Bharat getting a big boost on February 1. Siemens last week bagged one its biggest order in the history of Rs 26,000 crore. The firm in partnership with RVNL is also the L1 bidder for Surat and Ahmedabad metro projects. Vande Bharat could be a Rs 1.7 trillion opportunity from the recently floated tenders. The initial tranche of 200 trains, according to a CNBC-TV 18 report, is an opportunity of Rs 60,000 crore.

  • January 23, 2023 / 08:10 AM IST

    Budget 2023 expectations live updates: The farm sector is expecting tax breaks and monetary incentives such as subsidised credit facilities and interest rate subvention to agritech enterprises to offset losses from  external threats.