INDIA BUDGET 2023-24 MCQs

 1. Who presented the Union Budget 2023?

a.APJ Abdul Kalam

b.Nirmala Sitharaman

c.Manmohan Singh

d.Narendra Modi

Answer: b. Nirmala Sitharaman

Explanation: Finance Minister Nirmala Sitharaman presented the Union Budget 2023, the fifth budget on February 01 

2. The Budget 2023-24 adopts how many priorities?

a.7

b.6

c.2

d.1

Answer: a.7

Explanation: The Budget 2023-24 adopts the following seven priorities. They complement each other and act as the ‘Saptarishi’ guiding us through the Amrit Kaal. The priorities are, Inclusive Development, Reaching the Last Mile, Infrastructure and Investment, Unleashing the Potential, Green Growth, Youth Power, and Financial Sector.

3. Railways plan to refurbish more than 1,000 coaches of premier trains

a.1,000 coaches

b.5,000 coaches

c.10,000 coaches

d.100 coaches

Answer: a. 1,000 coaches

Explanation: Railways plan to refurbish more than 1,000 coaches of premier trains according to the Union Budget 2023.

4. How many teachers and support staff are to be recruited in the next 3 years, for 740 Eklavya Model Residential Schools?

a.As many as 38,000

b.As many as 50,000

c.As many as 10,000

d.As many as 40,000

Answer: a. As many as 38,000

Explanation: As many as 38,000 teachers and support staff are to be recruited in the next 3 years, for 740 Eklavya Model Residential Schools serving 3.5 lakh tribal students 

5. By which year the government aims to produce 5 MMT of green hydrogen?

a.2050

b.2025

c.2030

d.2040

Answer: c. 2030

Explanation: By 2030, the govt aims to produce 5 MMT of green hydrogen. Recently launched National Green Hydrogen with an outlay of Rs 19,700 crore.

6. What will be the global Hub for Millets?

a.the Indian Institute of Millet Research in Gujarat

b.the Indian Institute of Millet Research in Assam

c.the Indian Institute of Millet Research in Delhi

d.the Indian Institute of Millet Research in Hyderabad 

Answer: The Indian Institute of Millet Research in Hyderabad

Explanation: Now to make India a global hub for 'Shree Anna', the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence for sharing best practices, research, and technologies at the international level.  

7. What is the New Scheme that focuses on the fishermen and fish vendors? 

a.Green Growth

b.PM Garib Kalyan Ann Yojana

c.New sub-scheme of PM Matsya Sampada Yojana

d.Mahila Samman Bachat Patra

Answer. a. New sub-scheme of PM Matsya Sampada Yojana

Explanation: Fisheries: A new sub-scheme of PM Matsya Sampada Yojana with a targeted investment of  6,000 crores to further enable activities of fishermen, fish vendors, and micro & small enterprises, improve value chain efficiencies, and expand the market.

8. What is the new MSME scheme announced in the Union Budget 2023? 

a.New sub-scheme of PM Matsya Sampada Yojana

b.Revamped credit guarantee scheme for MSMEs

c.PM Garib Kalyan Ann Yojana

d. Mahila Samman Bachat Patra

Answer: b.Revamped credit guarantee scheme for MSMEs

Explanation: Revamped credit guarantee scheme for MSMEs to take effect from 1st April 2023 through the infusion of Rs 9,000 crore in the corpus. This scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore and also reduce the cost of the credit by about 1 percent.

9. Which Scheme that was announced in the Union Budget 2023 includes skilled people who are engaged in various traditional and skilled professions?

a.PM VIKAS (Pradhan Mantri Vishwakarma Kaushal Samman)

b.Revamped credit guarantee scheme for MSMEs

c.PM Garib Kalyan Ann Yojana

d. Mahila Samman Bachat Patra

Answer: a.PM VIKAS (Pradhan Mantri Vishwakarma Kaushal Samman)

Explanation: PM VIKAS (Pradhan Mantri Vishwakarma Kaushal Samman), which was announced in Budget 2023, will include skilled people who are engaged in various traditional and skilled professions.

10. Which was the first budget that was a digital one?

a.2023-24

b.2021-22

c.2002-03

d.2012-13

Answer: b. 2021-22

Explanation: The Union Minister for Finance & Corporate Affairs, Nirmala Sitharaman presented the Union Budget 2021-22 in Parliament on February 1, 2021, which is the first budget of this new decade and also a digital one in the backdrop of the unprecedented COVID-19

11. Union Finance Minister, Nirmala Sitharaman is presenting the Union Budget 2023 for the ________ time in a row.

(a) 10th

(b) 4th

(c) 3rd

(d) 5th

Answer: d

Explanation: Union Finance Minister, Nirmala Sitharaman is presenting the Union Budget 2023 for the 5th time in a row. She will be presenting the financial statements and tax proposals for the fiscal year 2023-24 (April 2023 to March 2024).

12. The Budget 2023 focuses on _______ priorities, which the FM called the “Saptrishis guiding us through Amrit Kaal”. 

(a) Fifth

(b) Sixth

(c) Seven

(d) Eigth

Answer: c

Explanation: The Budget 2023 focuses on seven priorities, which the FM called the “Saptrishis guiding us through Amrit Kaal”

13. When was the first Union Budget of India presented?

(a) 1947

(b) 1948

(c) 1949

(d) 1950

Answer: a

Explanation: The first Finance Minister of independent India was R. K. Shanmukham Chetty. He presented the first Union budget of India on 26 Nov.1947. The first mini-budget was presented by T. T. Krishnamachari on November 30, 1956

14. What time is the Union Budget presented?

(a) 9 AM

(b) 11 AM

(c) 12 PM

(d) 1 PM

Answer: b

Explanation:  The Union Budget session 2023, will be presented by Finance Minister Nirmala Sitharaman at 11 AM and will continue for up to two hours.

15. What is the current year’s economic growth is estimated at the Union budget 2023?

(a) 4%

(b) 8%

(c) 7%

(d) 6%

Anser: c

Explanation: In the 75th year of our Independence, the world has recognised the Indian economy as a ‘bright star’. Our current year’s economic growth is estimated to be at 7 per cent.

16. What is the maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from?

(a) 05 lakh to 30 lakh

(b) 10 lakh to 30 lakh

(c) 15 lakh to 30 lakh

(d) 20 lakh to 30 lakh

Answer: c

Explanation: The maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from ` 15 lakh to ` 30 lakh.

17. The outlay for Pradhan Mantri Awas Yojana is being enhanced by 66% to over _______.

(a) ₹39,000 cr

(b) ₹49,000 cr

(c) ₹59,000 cr

(d) ₹79,000 cr

Answer: d

Explanation: The outlay for Pradhan Mantri Awas Yojana is being enhanced by 66% to over ₹79,000 cr.

18. What is the rate of tax for Income tax slab between the income of Rs 3 Lakh to Rs 6 Lakh for assessment year 2023-24?

(a) 5%

(b) 10%

(c) 15%

(d) 20%

Answer: a

Explanation: 5% is the rate of tax for Income tax slab between the income of Rs 3 Lakh to Rs 6 Lakh for assessment year 2023-24.

19. “Bharat SHRI” will be set up in a digital epigraphy museum, with digitization of one lakh ancient inscriptions in the first stage. What does “I” stand for SHRI?

(a) India

(b) Intrapictures

(c) Inscriptions

(d) Industries

Answer: c

Explanation: ‘Bharat Shared Repository of Inscriptions’ will be set up in a digital epigraphy museum, with digitization of one lakh ancient inscriptions in the first stage.

20. Where is the budget presented by the Government?

(a) Lok Sabha

(b) Rajya Sabha

(c) Krishi Bhawan

(d) North Bhawan

Answer: a

Explanation:  According to the Constitution of India’s Article 110, a Finance Bill is a Money Bill which is presented only in the Lok Sabha or the lower house of the Parliament.

21. What is the rate of tax for Income tax slab between the income of Rs 9 Lakh to Rs 12 Lakh for assessment year 2023-24?

(a) 5%

(b) 10%

(c) 15%

(d) 20%

Answer: c

Explanation:  15% is the rate of tax for Income tax slab between the income of Rs 9 Lakh to Rs 12 Lakh for assessment year 2023-24.

22. What is the capital outlay has been provided for the Railways in the Union Budget 2023-24?

(a) 1.40 lakh crore

(b) 2.40 lakh crore

(c) 3.40 lakh crore

(d) 4.40 lakh crore

Answer: b

Explanation: A capital outlay of ` 2.40 lakh crore has been provided for the Railways. This highest ever outlay is about 9 times the outlay made in 2013-14.

23. The finance minister proposed to reduce the highest surcharge rate from 37 per cent to ________ in the new tax regime.

(a) 15 per cent

(b) 25 per cent

(c) 35 per cent

(d) 45 per cent

Answer: b

Explanation:  The finance minister proposed to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime.

24. Finance Minister Nirmala Sitharaman presented Union Budget on February 1, 2023. In the 2023 Budget speech, Sitharaman spoke for ______.

(a) 1 hour and 44 minutes

(b) 1 hour and 45 minutes

(c) 2 hours and 42 minutes

(d) 1 hour and 25 minutes

Answer: d

Explanation:  In the 2023 Budget speech, Sitharaman spoke for 1 hour and 25 minutes.

25. In the which year, Finance Minister Nirmala Sitharaman replaced the Budget briefcase with the traditional ‘Bahi Khata’ having the National Emblem?

(a) 2015

(b) 2016

(c) 2017

(d) 2019

Answer: d

Explanation: In the year 2019, Finance Minister Nirmala Sitharaman replaced the Budget briefcase with the traditional ‘Bahi Khata’ having the National Emblem.

26. The Centre has pegged the fiscal deficit _______ of GDP for FY24.

(a) 3.9 percent

(b) 4.3 percent

(c) 5.9 percent

(d) 6.6 percent

Answer: c

Explanation: The Centre has pegged the fiscal deficit for 2022-2023 and 5.9 percent of GDP for FY24, Finance Minister Nirmala Sitharaman said during her Union Budget speech.

27. What is the budget allocated for National Green Hydrogen Mission to shift low-carbon economy and reduce reliance on fossil fuel?

(a) Rs 15,700 crore

(b) Rs 16,700 crore

(c) Rs 17,700 crore

(d) Rs 19,700 crore

Answer: d

Explanation: The recently launched National Green Hydrogen Mission, with a budget of Rs 19,700 crore, will help the country shift to a low-carbon economy and reduce reliance on fossil fuel imports.

28. The defence budget was increased to ________ crore for 2023-24 from last year’s allocation of ₹5.25 lakh crore.

(a) ₹5.94 lakh

(b) ₹5.90 lakh

(c) ₹5.66 lakh

(d) ₹5.70 lakh

Answer: a

Explanation:  This is an increase from last year’s allocation of ₹5.25 lakh crore. The defence budget was increased to ₹5.94 lakh crore for 2023-24 from last year’s allocation of ₹5.25 lakh crore.

29. Which country first introduced budget?

(a) Australia

(b) England

(c) USA

(d) China

Answer: b

Explanation:  England was the highest country in the world to establish a modern government budget. After the triumph of the bourgeois revolution in 1640, England, as a parliamentary monarchy, had all of its financial powers controlled by Parliament.

30. According to which article of the Indian Constitution, the Union Budget of a year is referred to as the Annual Financial Statement?

(a) Article 108

(b) Article 101

(c) Article 115

(d) Article 112

Answer: d

Explanation: According to Article 112 of the Indian Constitution, the Union Budget of a year is referred to as the Annual Financial Statement (AFS).

INDIA BUDGET AT A GLANCE 2023-2024

Key Features of India Budget 2023-2024

 

BUDGET TERMINOLOGY

 

INDIA BUDGET 2023-24

 

INDIA BUDGET 2023-24

 

INDIA BUDGET 2023-24

 

INDIA BUDGET 2023-24

 

INDIA BUDGET 2023-24

 

INDIA BUDGET 2023-24

 

India Budget 2022-23 in Details

Important Point

• FM Nirmala Sitharaman’s 4th Budget speech 
• GDP growth in 2021-23 expected to be 9.2%, says Nirmala Sitharaman
• PLI in 14 sectors for aatmanirbhar bharat to create 6 million jobs
• Budget seeks to set tone for the ‘Amrit kaal’ of the next 25 years
• Farm procurement value for FY23 to be Rs 2.37 trillion
• HKen-Betwa river link project to be taken at cost of Rs 44,000 cr to benefit 900,000 farmers
• Rs 2 trillion outay for MSMEs
• 38 mn households to get piped water
• 75 digital banking systems in 75 districts by scheduled commercial banks
• Contracts for implementation of multimodal logistics parks at 4 locations to be awarded in 2022-23 in PPP Mode
• IIIT-B to provide support to healthcare infrastructurem
• Divestment target for FY23 seen at Rs 65,000 crore.

• India’s economic growth estimated at 9.2% to be the highest among all large economies.
• 60 lakh new jobs to be created under the productivity linked incentive scheme in 14
• PLI Schemes have the potential to create an additional production of Rs 30 lakh
• Entering Amrit Kaal, the 25 year long lead up to India @100, the budget provides impetus for growth along four priorities:

Focus areas of Budget

• PM GatiShakti
• Inclusive Development
• Productivity Enhancement & Investment, Sunrise opportunities, Energy Transition, and Climate Action.
• Financing of investments

PM GatiShakti

• The seven engines that drive PM GatiShakti are Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure.

PM GatiShkati National Master Plan

• The scope of PM GatiShakti National Master Plan will encompass the seven engines for economic transformation, seamless multimodal connectivity and logistics
• The projects pertaining to these 7 engines in the National Infrastructure Pipeline will be aligned with PM GatiShakti framework.

Road Transport

• National Highways Network to be expanded by 25000 Km in 2022-23.
• Rs 20000 Crore to be mobilized for National Highways Network

Multimodal Logistics Parks

• Contracts to be awarded through PPP mode in 2022-23 for implementation of Multimodal Logistics Parks at four

Railways

• One Station One Product concept to help local businesses & supply
• 2000 Km of railway network to be brought under Kavach, the indigenous world class technology and capacity augmentation in 2022-23.
• 400 new generation Vande Bharat Trains to be manufactured during the next three
• 100 PM GatiShakti Cargo terminals for multimodal logistics to be developed during the next three

Parvatmala

• National Ropeways Development Program, Parvatmala to be taken up on PPP mode.
• Contracts to be awarded in 2022-23 for 8 ropeway projects of 60 Km length.

Inclusive Development

Agriculture

• 2.37 lakh crore direct payment to 1.63 crore farmers for procurement of wheat and paddy.
• Chemical free Natural farming to be promoted throughout the Initial focus is on farmer’s lands in 5 Km wide corridors along river Ganga.
• NABARD to facilitate fund with blended capital to finance startups for agriculture & rural
• ‘Kisan Drones’ for crop assessment, digitization of land records, spraying of insecticides and

Ken Betwa project

• 1400 crore outlay for implementation of the Ken – Betwa link project.
• 9.8 lakh hectares of farmers’ lands to receive irrigation benefits by Ken-Betwa link project.

MSME

• Udyam, e-shram, NCS and ASEEM portals to be
• 130 lakh MSMEs provided additional credit under Emergency Credit Linked Guarantee Scheme (ECLGS)
• ECLGS to be extended up to March
• Guarantee cover under ECLGS to be expanded by Rs 50000 Crore to total cover of Rs 5 Lakh Crore.
• Rs 2 lakh Crore additional credit for Micro and Small Enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).
• Raising and Accelerating MSME performance (RAMP) programme with outlay of Rs 6000 Crore to be rolled out.

Skill Development

• Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to empower citizens to skill, reskill or upskill through on-line
• Startups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-Service (DrAAS).

Education

• ‘One class-One TV channel’ programme of PM eVIDYA to be expanded to 200 TV
• Virtual labs and skilling e-labs to be set up to promote critical thinking skills and simulated learning
• High-quality e-content will be developed for delivery through Digital
• Digital University for world-class quality universal education with personalised learning experience to be

Health

• An open platform for National Digital Health Ecosystem to be rolled out.
• ‘National Tele Mental Health Programme’ for quality mental health counselling and care services to be
• A network of 23 tele-mental health centres of excellence will be set up, with NIMHANS being the nodal centre and International Institute of Information Technology- Bangalore (IIITB) providing technology

Saksham Anganwadi

• Integrated benefits to women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0.
• Two lakh anganwadis to be upgraded to Saksham

Har Ghar, Nal Se Jal

• 60,000 crore allocated to cover 3.8 crore households in 2022-23 under Har Ghar, Nal se Jal.

Housing for All

• 48,000 crore allocated for completion of 80 lakh houses in 2022-23 under PM Awas Yojana.

Prime Minister’s Development Initiative for North-East Region (PM-DevINE)

• New scheme PM-DevINE launched to fund infrastructure and social development projects in the North-East.
• An initial allocation of 1,500 crore made to enable livelihood activities for youth and women under the scheme.

Vibrant Villages Programme

• Vibrant Villages Programme for development of Border villages with sparse population, limited connectivity and infrastructure on the northern border.

Banking

• 100 per cent of 5 lakh post offices to come on the core banking system.
• Scheduled Commercial Banks to set up 75 Digital Banking Units (DBUs) in 75 districts.

e-Passport

• e-Passports with embedded chip and futuristic technology to be rolled

Urban Planning

• Modernization of building byelaws, Town Planning Schemes (TPS), and Transit Oriented Development (TOD) will be
• Battery swapping policy to be brought out for setting up charging stations at scale in urban

Land Records Management

• Unique Land Parcel Identification Number for IT-based management of land

Accelerated Corporate Exit

• Centre for Processing Accelerated Corporate Exit (C-PACE) to be established for speedy winding-up of

AVGC Promotion Task Force

• An animation, visual effects, gaming, and comic (AVGC) promotion task force to be set-up to realize the potential of this sector.

Telecom Sector

• Scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G as part of the Production Linked Incentive

Export Promotion

• Special Economic Zones Act to be replaced with a new legislation to enable States to become partners in ‘Development of Enterprise and Service Hubs’.

 AtmaNirbharta in Defence:

• 68% of capital procurement budget earmarked for domestic industry in 2022-23, up from 58% in 2021-22.
• Defence R&D to be opened up for industry, startups and academia with 25% of defence R&D budget earmarked.
• Independent nodal umbrella body to be set up for meeting testing and certification

Sunrise Opportunities

• Government contribution to be provided for R&D in Sunrise Opportunities like Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its eco-system, Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility

Energy Transition and Climate Action:

• Additional allocation of 19,500 crore for Production Linked Incentive for manufacture of high efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030.
• Five to seven per cent biomass pellets to be co-fired in thermal power plants:

1. CO2 savings of 38 MMT annually,
2. Extra income to farmers and job opportunities to locals,
3. Help avoid stubble burning in agriculture

• Four pilot projects to be set up for coal gasification and conversion of coal into chemicals for the industry
• Financial support to farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agro-forestry.

Financing of investments

Public Capital Investment:

• Public investment to continue to pump-prime private investment and demand in 2022-23.
• Outlay for capital expenditure stepped up sharply by 4% to Rs. 7.50 lakh crore in 2022-23 from Rs. 5.54 lakh crore in the current year.
• Outlay in 2022-23 to be 9% of GDP.
• ‘Effective Capital Expenditure’ of Central Government estimated at 10.68 lakh crore in 2022-23, which is about 4.1% of GDP.

GIFT-IFSC

• World-class foreign universities and institutions to be allowed in the GIFT
• An International Arbitration Centre to be set up for timely settlement of disputes under international jurisprudence.

Mobilising Resources

• Data Centres and Energy Storage Systems to be given infrastructure
• Venture Capital and Private Equity invested more than Rs. 5 lakh crore last year facilitating one of the largest start-up and growth ecosystem. Measures to be taken to help scale up this investment.
• Blended funds to be promoted for sunrise sectors.

• Sovereign Green Bonds to be issued for mobilizing resources for green

Digital Rupee

• Introduction of Digital Rupee by the Reserve Bank of India starting 2022-23.

Providing Greater Fiscal Space to States

• Enhanced outlay for ‘Scheme for Financial Assistance to States for Capital Investment’:
  • From 10,000 crore in Budget Estimates to Rs. 15,000 crore in Revised Estimates for current year
• Allocation of 1 lakh crore in 2022-23 to assist the states in catalysing overall investments in the economy: fifty-year interest free loans, over and above normal borrowings
• In 2022-23, States will be allowed a fiscal deficit of 4% of GSDP, of which 0.5% will be tied to power sector reforms

 Fiscal Management

• Budget Estimates 2021-22: 34.83 lakh crore
• Revised Estimates 2021-22: 37.70 lakh crore
• Total expenditure in 2022-23 estimated at Rs. 39.45 lakh crore

• Total receipts other than borrowings in 2022-23 estimated at Rs. 84 lakh crore
• Fiscal deficit in current year: 9% of GDP (against 6.8% in Budget Estimates)
• Fiscal deficit in 2022-23 estimated at 6.4% of GDP

DIRECT TAXES

To take forward the policy of stable and predictable tax regime:

• Vision to establish a trustworthy tax regime.
• To further simplify tax system and reduce

Introducing new ‘Updated return’

• Provision to file an Updated Return on payment of additional tax.
• Will enable the assessee to declare income missed out
• Can be filed within two years from the end of the relevant assessment

Cooperative societies

• Alternate Minimum Tax paid by cooperatives brought down from 5 per cent to 15 per cent.
• To provide a level playing field between cooperative societies and
• Surcharge on cooperative societies reduced from 12 per cent to 7 per cent for those having total income of more than Rs 1 crore and up to Rs 10 crores.

Tax relief to persons with disability

• Payment of annuity and lump sum amount from insurance scheme to be allowed to differently abled dependent during the lifetime of parents/guardians, i.e., on parents/ guardian attaining the age of 60

Parity in National Pension Scheme Contribution

• Tax deduction limit increased from 10 per cent to 14 per cent on employer’s contribution to the NPS account of State Government employees.
• Brings them at par with central government
• Would help in enhancing social security

Incentives for Start-ups

• Period of incorporation extended by one year, up to 31.03.2023 for eligible start-ups to avail tax
• Previously the period of incorporation valid up to 03.2022.

Incentives under concessional tax regime

• Last date for commencement of manufacturing or production under section 115BAB extended by one year e. from 31st March, 2023 to 31st March, 2024.

Scheme for taxation of virtual digital assets

• Specific tax regime for virtual digital assets
• Any income from transfer of any virtual digital asset to be taxed at the rate of 30 per cent.
• No deduction in respect of any expenditure or allowance to be allowed while computing such income except cost of acquisition.
• Loss from transfer of virtual digital asset cannot be set off against any other income.
• To capture the transaction details, TDS to be provided on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary
• Gift of virtual digital asset also to be taxed in the hands of the

Litigation Management

• In cases where question of law is identical to the one pending in High Court or Supreme Court, the filing of appeal by the department shall be deferred till such question of law is decided by the court.
• To greatly help in reducing repeated litigation between taxpayers and the

Tax incentives to IFSC

• Subject to specified conditions, the following to be exempt from tax
  • Income of a non-resident from offshore derivative instruments.
  • Income from over the counter derivatives issued by an offshore banking
  • Income from royalty and interest on account of lease of
  • Income received from portfolio management services in

Rationalization of Surcharge

• Surcharge on AOPs (consortium formed to execute a contract) capped at 15 per
• Done to reduce the disparity in surcharge between individual companies and
• Surcharge on long term capital gains arising on transfer of any type of assets capped at 15 per
• To give a boost to the start up

Health and Education Cess

• Any surcharge or cess on income and profits not allowable as business

Deterrence against tax-evasion

• No set off, of any loss to be allowed against undisclosed income detected during search and survey

Rationalizing TDS Provisions

• Benefits passed on to agents as business promotion strategy taxable in hands of agents.
• Tax deduction provided to person giving benefits, if the aggregate value of such benefits exceeds Rs 20,000 during the financial

INDIRECT TAXES

 Remarkable progress in GST

• GST revenues are buoyant despite the pandemic – Taxpayers deserve applause for this

Special Economic Zones

• Customs Administration of SEZs to be fully IT driven and function on the Customs National Portal – shall be implemented by 30th September 2022.

Customs Reforms and duty rate changes

• Faceless Customs has been fully During Covid-19 pandemic, Customs formations have done exceptional frontline work against all odds displaying agility and purpose.

Project imports and capital goods

• Gradually phasing out of the concessional rates in capital goods and project imports; and applying a moderate tariff of 5 percent – conducive to the growth of domestic sector and ‘Make in India’.
• Certain exemptions for advanced machineries that are not manufactured within the country shall
• A few exemptions introduced on inputs, like specialised castings, ball screw and linear motion guide – to encourage domestic manufacturing of capital

Review of customs exemptions and tariff simplification

• More than 350 exemption entries proposed to be gradually phased out, like exemption on certain agricultural produce, chemicals, fabrics, medical devices, & drugs and medicines for which sufficient domestic capacity
• Simplifying the Customs rate and tariff structure particularly for sectors like chemicals, textiles and metals and minimise disputes; Removal of exemption on items which are or can be manufactured in India and providing concessional duties on raw material that go into manufacturing of intermediate products – in line with the objective of ‘Make in India’ and ‘Atmanirbhar Bharat’.

Sector specific proposals Electronics

• Customs duty rates to be calibrated to provide a graded rate structure – to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart
• Duty concessions to parts of transformer of mobile phone chargers and camera lens of mobile camera module and certain other items – To enable domestic manufacturing of high growth electronic

Gems and Jewellery

• Customs duty on cut and polished diamonds and gemstones being reduced to 5 per cent; Nil customs duty to simply sawn diamond – To give a boost to the Gems and Jewellery sector
• A simplified regulatory framework to be implemented by June this year – To facilitate export of jewellery through e-commerce.
• Customs duty of at least Rs 400 per Kg to be paid on imitation jewellery import – To disincentivise import of undervalued imitation jewellery.

Chemicals

• Customs duty on certain critical chemicals namely methanol, acetic acid and heavy feed stocks for petroleum refining being reduced; Duty is being raised on sodium cyanide for which adequate domestic capacity exists – This will help in enhancing domestic value

MSME

• Customs duty on umbrellas being raised to 20 per cent. Exemption to parts of umbrellas being
• Exemption being rationalised on implements and tools for agri-sector which are manufactured in India
• Customs duty exemption given to steel scrap last year extended for another year to provide relief to MSME secondary steel producers
• Certain Anti- dumping and CVD on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel are being revoked – to tackle prevailing high prices of metal in larger public

Exports

• To incentivise exports, exemptions being provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging
• Duty being reduced on certain inputs required for shrimp aquaculture – to promote its