War, Recession, Layoffs, and inflation are the four major pre-budget keywords floating around the world for the past several months. Despite of such fears, Indian economy has done a phenomenal job in standing tall except in case of more than usual inflation.
EZTax sees Budget 2023 as a pivot for a significant shift from status quo budgeting with a firm focus on self-reliant India and an increase in defence and infrastructure spending to boost the private sector to catch up with what is needed for a major economy, shattering recessionary fears around the world for an isolated growth.
EZTax.in further expecting the Budget 2023 under the leadership of Hon’ble Finance Minister Smt. Nirmala Sitharaman to have below set of key changes. Visit https://eztax.in/budget for a complete list of expectations.
- Continued reforms towards "minimum government and maximum governance", steps to re-gain the market confidence for privatisation of non-functional PSUs, etc.
- Increase the local sourcing requirements for all the government and major public companies to reinvigorate the MSME business.
- Provide larger incentives for start-ups. who are providing employment and innovation for defence industry, agriculture, and national building products and services.
- Re-organisation of GST Slab Rates to promote employment along the lines of raw (lower GST Slab), processed (manufactured), heavily processed, and imported (higher GST Slab).
- Income tax reforms and Budget 2023 should emphasise easing tax compliance and increasing the tax base in India.
- Increase the tax rebate under section 87A for a tax-free income of up to Rs. 6 lakhs.
- Increase primary Income tax deduction for housing loan, in case of self-occupied property to Rs. 3L to promote housing and savings.
- Encourage a small family of four to get a special rebate. Also, introduce "family" as an IT return type to enable family filing with incentives.
- Enhance the new tax regime with more favourable tax slabs to pave the way for the sunset of the old tax regime and reduce compliance complexity. Set a date for the end of the old tax regime.
- Special Fund to Automate Company Compliance to Reduce Human Intervention Reduce the tax professional's involvement during the company's lifecycle for revenue up to Rs. 10 crores.
- Enable a measure to give online EZ Loans based on GST turnover and sector-specific indicators.
- Transformations in the banking sector as a whole—re-enforcing asset valuation to reduce NPAs, privatising some banks.
"While the overall economy is progressing and showing resilience and confidence, it is vital to take care of the employment issue in India. Frameworks and budget allocation should be reoriented toward achieving a higher employment outcome, this also means to continue to have a higher Capital expenditure by reducing revenue expenditure that was raised during COVID times," said Suneel Dasari, Founder and CEO at EZTax.in.
Mr. Dasari further said, "The untapped, low-hanging fruit for higher revenue to fund Budget 2023 is the tax collection "from the non-compliant".
EZTax sees Budget 2023 to have a higher or on-par Capital Expenditure compared to FY 2022-23 when the world is facing a recessionary environment. This seems to be a bold, inward looking, and a much-needed step for India."