Ms Sitharaman presented the Budget for 2023-24. Ms Sitharaman said that world has recognised Indian economy as a ‘bright star’. India’s current year’s economic growth is estimated to be at 7 per cent which is the highest among all the major economies despite massive slowdown globally caused by Covid-19 and a war. Ms Sitharaman said that Indian economy is on the right track, and is heading towards a bright future.
Finance Minister said that the government’s efforts since 2014 have ensured for all citizens a better quality of living and a life of dignity. The per capita income has more than doubled to ` 1.97 lakh. In these nine years, the Indian economy has increased in size from being 10th to 5th largest in the world. Ms Sitharam emphasised that India has significantly improved its position as a well-governed and innovative country with a conducive environment for business as reflected in several global indices and have made significant progress in many Sustainable Development Goals.
Budget provides that in case of domestic company, the rate of income-tax shall be 25% of the total income, if the total turnover or gross receipts of the previous year 2021-22 does not exceed four hundred crore rupees and where the companies continue in section 115BA regime. In all other cases the rate of income-tax shall be 30% of the total income. However, domestic companies also have an option to opt for taxation under section 115BAA or section 115BAB of the Act on fulfillment of conditions contained therein. The tax rate is 15% in section 115BAB and 22% in section 115BAA. Surcharge is 10% in both cases.
In the case of company other than domestic company, the rates of tax are the same as those specified for the FY 2022-23.
Surcharge at the rate of 7% shall continue to be levied in case of a domestic company (except those opting for taxation under section 115BAA and section 115BAB of the Act), if the total income of the domestic company exceeds one crore rupees but does not exceed ten crore rupees. Surcharge at the rate of 12% shall continue to be levied, if the total income of the domestic company (except those opting for taxation under section 115BAA and section 115BAB of the Act) exceeds ten crore rupees.
In case of companies other than domestic companies, the existing surcharge of 2% shall continue to be levied, if the total income exceeds one crore rupees but does not exceed ten crore rupees. Surcharge at the rate of 5% shall continue to be levied, if the total income of the company other than domestic company exceeds ten crore rupees.
Marginal relief is provided in surcharge in all cases.
In other cases [including sub-section (2A) of section 92CE, 115QA, 115R, or 115TD], the surcharge shall be levied at the rate of 12%
For FY 2023-24, additional surcharge called the “Health and Education Cess on income-tax” shall be levied at the rate of 4% on the amount of tax computed, inclusive of surcharge (wherever applicable), in all cases. No marginal relief shall be available in respect of such cess.
For the newly inserted provision 115BBJ, tax rate is provided in the section itself and surcharge shall be levied based on status of the taxpayer as is otherwise applicable to such taxpayer.
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