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January 21, 2023 / 09:12 PM IST

Budget 2023 expectations highlights: Govt may announce PLI scheme for more sectors

Budget 2023 expectations highlights: The government has already rolled out the scheme with an outlay of about Rs 2 lakh crore for as many as 14 sectors, including automobiles and auto components, white goods, pharma, textiles, food products, high-efficiency solar PV modules, advance chemistry cell and speciality steel.

Budget 2023 expectations highlights: The government is likely to extend fiscal incentives for the production of toys, bicycles, and leather and footwear in the forthcoming budget as it looks to expand the production linked incentive (PLI) scheme to cover more high-employment potential sectors, sources said.

The government has already rolled out the scheme with an outlay of about Rs 2 lakh crore for as many as 14 sectors, including automobiles and auto components, white

goods, pharma, textiles, food products, high-efficiency solar PV modules, advance chemistry cell and speciality steel.

The scheme aims to make domestic manufacturing globally competitive and create global champions in manufacturing, and it is yielding solid results, sources said.

A proposal to extend PLI scheme benefits to different sectors such as toys and leather is at advanced stages of finalisation and there is a likelihood that it may figure in the Budget, they added.


“We expect that spends for Railways and Jal Jeevan Mission will remain steady and considering the inflation factor, the allocation could even go up materially,” says Priyankar Biswas, Vice President and Equity Analyst at Nomura. In the Union Budget, railway forms about 15 percent of the capital expenditure by the Government, highlighted Amit Anwani, research analyst at Prabhudas Lilladher.

He believes that the upcoming Budget would include a 12-15 percent YoY rise in railway-related capex. And the broader focus of the government would be revamping rail network, rail electrification, station redevelopment, Vande Bharat trains among other things, he added.

Even urban infrastructure is expected to be in focus, market participants said.


With Budget 2023 around the corner, investors are hoping for a simple system, which would be easy to calculate tax costs and minimise litigation and disputes.

As against the current three categories of holding period, the expectation is that this will be simplified to at least two categories.

For instance, capital gain on listed shares is considered as long term, if the holding period is 12 months. REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) are categorised as long-term capital assets, if held for at least 36 months.

To bring parity into tax treatment, and for the computation of capital gains tax, the holding period for units of REITs and InvITs should be standardised at 12 months, instead of 36.


The upcoming Union Budget should not only create a roadmap for sustainable growth in the logistics sector but also incentivise the industry to adopt sustainable practices, operators have said.

FedEx Express Senior Vice-President Middle East Indian Subcontinent and Africa (MEISA) Operations Kami Viswanathan in a statement said, "We recommend the implementation of zero rating of Goods and Services Tax for all international transportation services.

"Most of the international GST/VAT legislations 'zero-rate' international freight transportation services. This would facilitate trade and align India with international tax practices as well as reduce logistics costs." "The budget should not only create a roadmap for sustainable growth in the logistics sector but also incentivize logistics players to adopt sustainable practices," Viswanathan said.

According to Mahindra Logistics CFO Yogesh Patel, the government may also consider introducing concessions for electric vehicle (EV) infrastructure installation, such as charging stations in addition to concessions for new EVs which can expedite the adoption of EVs for commercial purposes and speed up its presence in the last-mile delivery services.

"Union Budget should continue to prioritise the improvement of logistics infrastructure across roads, warehouses and ports," Patel explained.


India's nascent private space wants tax incentives and a production-linked incentive scheme to boost local manufacturing and spur research and development.

"In the 2023-24 Union Budget, we would like to request a space-based production linked incentive (PLI) scheme for space tech startups to help boost local manufacturing and encourage capability building within the country," Awais Ahmed, the co-founder and chief executive officer of Pixxel, a space startup based in Bengaluru, told PTI.

Last year, Pixxel became the first Indian startup to launch its own hyperspectral imaging satellite, "Shakuntala", onboard SpaceX's rideshare rocket.

Kranthi Chand, the head of the strategy and special projects of Hyderabad-based DhruvaSpace, demanded, "In the Union Budget 2023-24, we request a further Rs 100 crore issuance as viability gap funding (VGF) to set up new infrastructure."

Chand also wants the government to make a dedicated allocation of Rs 1,000 crore for the Defence Space Agency (DSA) for the procurement of new technology from the industry.


Dalal Street is a bit edgy about FM's call on long-term capital gains (LTCG) tax rates in Budget 2023. Tax experts feel any tinkering with LTCG tax rates could dampen investment sentiment. Britain provides an exemption up to GBP 12,300 for capital gains, beyond which the gains are taxed at 10 percent. LTCG gains are taxed at 15 percent in the US and in Thailand, while the rate goes up to 20 percent in Australia.

The debate is whether the FM will leave a considerable amount of wealth with investors to boost equity market sentiment or get her pound of flesh from recent gains.

Here are a few expectations on the current tax rate

-- An LTCG tax of 10 percent on all equity investments held for more than a year without indexation benefits. This will cover three classes of assets -- equity, non-equity financial assets and all others including real estate.

-- A holding period of two years for all financial investments, which would mean debt fund holdings may get their period reduced from the current three years.

-- Bring listed and unlisted equity holdings at par for taxation.

-- Reduce holding period requirement for debt mutual fund units to two years.

-- Capital gains from real estate transfer is exempt to the extent it is invested in government of India-specified bonds, subject to a limit of Rs 50 lakh. One of the expectations from the budget is that this limit be enhanced.

-- The above benefit can also be extended to all LTCG, instead of limiting it to only gains on sale of land or building.

-- The current regime does not entitle taxpayers to the rebate (of up to Rs 12,500) on tax payable on LTCG on the sale of listed equity shares, equity-oriented mutual fund units and units of REITs/ InvITs, which should be permitted.

  • Budget 2023 expectations highlights: Govt may announce PLI scheme for more sectors
    Moneycontrol.com
  • January 21, 2023 / 12:07 PM IST

    Budget 2023 expectations: What space sector wants

    The private space sector is expecting a space-based production linked incentive (PLI) scheme for space tech startups to help boost local manufacturing and encourage capability building within the country. The sector wantsgovernment to provide financial support through loans, grants and tax incentives to the companies and organisations in the space sector.

    Most space-tech companies in India are startups and access to capital is an issue.India's space economy was pegged at USD 9.6 billion in 2020 and was expected to touch USD 12.8 billion by 2025, according to a report released by EY last year.

  • January 21, 2023 / 12:02 PM IST

    Budget 2023 expectations live updates:


    Market experts see Budget 2023-24 as a big event only if there is any tinkering with the tax rates or tenures with respect to LTCG (long term capital gains) or STCG (short term capital gains) across asset classes.

    Since Budget comes in an election year, the government, they add, may announce some benefits and policies aimed at the rural sector to boost demand, while certain measures could be aimed at uplifting rural infrastructure, which indirectly boosts employment and relieves distress.

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  • January 21, 2023 / 08:34 AM IST

    Budget 2023 live updates:  More Vande Bharat trains expected

    Last Budget saw finance minister Nirmala Sitharaman laying out the grand plan of introducing 400 semi-high-speed, next-generation Vande Bharat trains in the next three years. This may go up in Budget 2023. The Centre is likely to unveil plans for another 400 new Vande Bharat trains and gradually replace all existing high-speed trains, including the Rajdhanis and Shatabdis, to increase the speed on major routes to over 180 kmph.

  • January 21, 2023 / 08:34 AM IST

    Budget 2023 live updates:

    For the FM, keeping the present 19.5 per cent growth rate in income and corporate tax collections may be tough next fiscal given headwinds from a slowing world and high base effect.

    Net direct taxes, made up of personal income tax and the tax levied on corporate earnings, have seen a record growth in current fiscal year, topping up the numbers projected in the Budget. The expected lower nominal GDP growth in 2023-24 on the back of threats of global recession could impact income tax collection. The net direct tax collection grew 19.55 per cent to Rs 12.31 lakh crore till January 10 -- which is 86.68 per cent of the Budget estimates for current fiscal year.

    The forthcoming Budget will have revised revenue estimates for current fiscal year as well as tax collection estimates for the next year.

  • January 21, 2023 / 08:30 AM IST

    Budget 2023 expectations live: Aviation demands

    The allocation for Ude Desh ka Aam Nagrik (UDAN) may come down by as much as about 17 percent in the upcoming budget. Funding for UDAN is likely to fall to Rs 500-550 crore from about Rs 600 crore in each of the past two years. UDAN, which started in October 2016, provides viability gap funding, or grants, to airlines selected via a bidding process to operate flights on under-served or unserved routes.

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  • January 21, 2023 / 08:25 AM IST

    Budget 2023 expectations live updates:

    Budget may see incentives being extended for making toys, bicycles and leather and footwear as the Centre looks to expand production linked incentive (PLI) scheme to cover more high-employment potential sectors. India has already rolled out the scheme with an outlay of about Rs 2 lakh crore for as many as 14 sectors, including automobiles and auto components, white goods, pharma, textiles, food products, high efficiency solar PV modules, advance chemistry cell and speciality steel.

    PLI aims to make domestic manufacturing globally competitive and create global champions in manufacturing, and it is yielding solid results. A proposal to extend PLI scheme benefits to different sectors such as toys and leather are at advanced stages of finalisation and there is a likelihood that it may figure in Budget, it is reported

  • January 21, 2023 / 08:24 AM IST

    Why are taxpayers wary of current CTR?
    The current CTR may is not attractive for those who make contributions and investments, feel experts. Common benefits availed by the salaried such as HRA exemption, deduction for contribution to PF, health insurance premium, standard deduction on salary etc. are lost in lieu of reduced tax rates. Therefore, irrespective of the salary packages offered by organisations to individuals, they do not opt for the concessional tax regime.