The government has presented its budget for the year with goals to be fully filled. The
interim budget 2023-24 turned out to be what it has promised, an interim budget. It has some very interesting data about the state of the economy. What are the aims and new rules and regulations presents by government? New rules regarding tax and disinvestment?
What is the Aim of budget 2023-24 this year?
The Budget 24-25 is again focused on economic growth of 10.5 percent, and robust tax collection to match the economic growth, and reasonable expenditure, except that capex is going up by 11 percent to Rs 11.1 lakh crore.
Local people agreeing with the government’s decision?
Tax burden did not reduce, Finance Minister Nirmala Sitharaman’s interim budget
disappointed taxpayers. Taxpayers troubled by inflation were hoping that the Modi
government would provide some relief but the interim budget has disappointed them.
Income tax rates unchanged in interim budget Taxpayers disappointed Income.
The Modi government has disappointed the taxpayers in its interim budget who were
hoping for relief on the tax front before the Lok Sabha elections. There are more than 8
crore taxpayers who had filed returns in the assessment year 2023-24, they are
disappointed. Taxpayers troubled by inflation were hoping that the Modi government would provide relief from some tax burden, but the interim budget has disappointed them.
Standard deduction has increased or decreased?
Standard deduction not increased
In the assessment year 2023-24, more than 8.18 crore taxpayers have filed income tax
returns, while in 2022-23, a total of 10.09 crore PAN card holders have paid income tax. Taxpayers had this expectation as the food inflation rate is near double digits.
In such a situation, the Finance Minister will announce to increase the standard deduction by more than Rs 50,000 but this has not happened. However, in the interim budget of 2019, the standard deduction was increased from Rs 40,000 to Rs 50,000.
No relief in the new tax regime
It was believed that the Finance Minister would make changes in the new tax regime to popularize the new income tax regime and increase its acceptance, but taxpayers have been disappointed. At present, if we look at the tax rates under the new income tax regime, those whose income is up to Rs 7 lakh do not have to pay any tax.
What are the new rules on taxes?
The government is giving tax rebate of Rs 25,000 which is being taxed. Under the new
income tax system, there is now no tax on income up to Rs 3 lakh. 5% in slab of Rs 3 to 6 lakh, 10% in slab of Rs 6 to 9 lakh, 15% in slab of Rs 9 to 12 lakh, 20% in slab of Rs 12 to 15 lakh and above Rs 15 lakh 30 percent income tax has to be paid on higher income. Tax burden not reduced, Finance Minister Nirmala Sitharaman’s interim budget
disappointed taxpayers.
What were previous rules on taxes?
Old regime taxpayers disappointed Taxpayers who had adopted the old tax regime were also hopeful that there would be a change in its tax slab. In particular, the income tax exemption limit was expected to be raised to Rs 3 lakh as per the new regime. At present, in the old tax system, there is tax exemption on income up to Rs 2.50 lakh. However, in the old tax system, those with income up to Rs 5 lakh do not have to pay any tax.
The government gives a rebate of 5 percent on income between Rs 2.50 to Rs 5 lakh, which amounts to a tax of Rs 12500. In the old tax regime, no tax had to be paid on annual income up to Rs 2.50 lakh. Tax has to be paid at 5% on income between Rs 2.50 to Rs 5 lakh, 20% on income between Rs 5 to Rs 10 lakh and 30% on income above Rs 10 lakh.
When will the budget be fully presented?
Full budget will be presented in July. Taxpayers have been disappointed in the interim budget. Now after the formation of the new government after the Lok Sabha elections, the taxpayers have all the expectations from the new government to be formed at the Centre. SBI Chairman Dinesh Khara said that the interim budget has raised great hopes.
Through this, a blueprint has been drawn to connect women, small businessmen, farmers and youth in developed India. Nishant Khemani of Saturn Consulting Group said that even though no changes have been made in the tax system at present, there are full expectations of major changes in the full budget to be held in July after the elections.
What are the rules and regulations regarding disinvestment?
Disinvestment will not happen at low prices of shares, market value of government
companies increased by Rs 42 lakh crore in 3 years. Budget 2024 No Disinvestment At
Cheap Price Listed PSE PSB Market Value Jumps By 42 Lakh Crore Rupees in 3 Years Says DIPAM Budget 2024: There will be no disinvestment at cheap price of shares, market value of government companies increased by 42 Lakh Crore in 3 years.
What is the aim behind this rule?
The aim of the government is to unlock the value of government companies. In 2020-21, the stock market valuation of these companies has increased from Rs 15 lakh crore to Rs 58 lakh crore.
What were the views of Tuhin Kanta Pandey on this rule?
The government has given clarification regarding not being able to meet the target of disinvestment. DIPAM (Department of Investment and Public Asset Management)
Secretary Tuhin Kanta Pandey said that before disinvestment, the government’s aim is to unlock the value of government companies. He said that in the three years financial year 2020-21, the market capitalization of public sector companies and public sector banks listed on the stock exchange was Rs 15 lakh crore, which has today increased to Rs 58 lakh crore. He said that the value of government companies has increased by Rs 25 lakh crore in just one year.
Value increased by Rs 42 lakh crore in 3 years. In the post-budget press conference, the Finance Minister was asked a question about not being able to meet the disinvestment target. In response to this question, DIPAM Secretary Tuhin Kanta Pandey said that the government’s aim is to unlock the value of government companies before disinvestment.
He said that a total of 61 PSU companies and 16 public sector banks are listed on the
stock exchange. In 2020-21, the stock market valuation of these companies used to be only Rs 15 lakh crore, which has increased to Rs 58 lakh crore.
The market value of these companies has increased by Rs 42 lakh crore. The value of government companies has increased by Rs 25 lakh crore in one year. Tuhin Kanta Pandey said that due to an increase in the value of government companies, the government has shared the assets with all the small investors. He said that the government’s principle before disinvestment is value unlocking.
What are the rules regarding government companies share?
The government will not sell shares at cheap prices. Tuhin Kanta Pandey said that after 2014, the government has raised Rs 4.2 lakh crore from disinvestment and has received a dividend of Rs 4 lakh crore from government companies.
He said that before disinvestment of any government company, its value will have to be increased after which disinvestment will be done in a phased manner. He said that it is not that we will sell shares of government companies at any price.
Government has given targets for disinvestment this year?
The government did not give a target for disinvestment. In fact, the Modi government is failing to meet the disinvestment target set in the budget. In 2023-24, the government had set a target of raising Rs 51,000 crore through disinvestment, which has been reduced to Rs 30,000 crore in the revised estimate.
This is when the stocks of government companies are touching heights in the stock market. Despite this, the government has proved unsuccessful in not achieving the target of disinvestment. Tuhin Kanta Pandey
said that therefore the government has not set any targets for disinvestment.
Frequently asked questions
1.When will the budget of 2024 be announced in India?
Finance Minister Nirmala Sitharaman will present the budget for the fiscal year 2024-
2025 on 1 February 2024 at 11:00 am.
2.Will the tax slab change in 2024?
There is no change in Income tax slabs 2024-2025. In a disappointment for the common
man and the middle class salaried taxpayers no changes in income tax slabs or income
tax rates for the financial year 2024-25 were announced by Finance Minister Nirmala
Sitharaman in her Interim Budget 2024 speech.
3.What is cheaper and costlier in budget 2024?
There is no announcement regarding anything that might get cheaper and more
expensive was made by the Finance Minister in her 2024 Union Budget speech.
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