{"id":11255,"date":"2023-02-01T17:27:05","date_gmt":"2023-02-01T11:57:05","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=11255"},"modified":"2025-03-05T08:27:06","modified_gmt":"2025-03-05T02:57:06","slug":"budget-2023-key-highlights","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/","title":{"rendered":"Budget 2023: Sector-wise Key Highlights"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Every year, on the 1st of February, the Finance Minister of India reads out the Budget at the Parliament.\u00a0<\/span><span style=\"font-weight: 400;\">This year, FM Nirmala Sitharaman called out some interesting changes, relating to business, startups, and <a href=\"https:\/\/razorpay.com\/learn\/what-is-entrepreneurship\/\">entrepreneurship<\/a>.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e125ae2f954\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e125ae2f954\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/#For_Startups\" >For Startups<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/#Tax_Holiday_Date_Revision\" >Tax Holiday Date Revision<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/#Carry_Forward_Set_Off_Losses\" >Carry Forward &amp; Set Off Losses<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/#In_IT\" >In IT<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/#Data_Accessibility\" >Data Accessibility<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/#For_Businesses\" >For Businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/#In_Agriculture\" >In Agriculture<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/#For_Digital_India\" >For Digital India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/#Taxes\" >Taxes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/#Income_Tax\" >Income Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/budget-2023-key-highlights\/#Income_Tax_Slab_FY_2023-24\" >Income Tax Slab FY 2023-24<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"For_Startups\"><\/span><b>For Startups<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Holiday_Date_Revision\"><\/span>Tax Holiday Date Revision<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Startups in India enjoy a \u201ctax holiday\u201d, where they don\u2019t pay taxes for the first 3 years of incorporation. <\/span>Until now, any<span style=\"font-weight: 400;\">\u00a0startup incorporated before <\/span>31st March 2023<span style=\"font-weight: 400;\">\u00a0could avail this tax holiday benefit.<\/span><\/p>\n<h5>Implication:<\/h5>\n<p>The Budget 2023 extended this date by <strong>one year<\/strong>, meaning a startup incorporated before<strong>\u00a031st March, 2024<\/strong> can also enjoy the benefits of tax holiday!<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Carry_Forward_Set_Off_Losses\"><\/span>Carry Forward &amp; Set Off Losses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Until now, startups were allowed to carry forward and set off losses if such a loss has been incurred for 7 years since incorporation. <\/span><span style=\"font-weight: 400;\">The new Budget has extended it to <\/span><b>10 years <\/b><span style=\"font-weight: 400;\">since incorporation.<\/span><\/p>\n<h5>Implication:<\/h5>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Startups can \u201ccarry forward and set off losses\u201d, m<\/span><span style=\"font-weight: 400;\">eaning losses from any source can be set off against profit from another source and can be carried forward to future financial years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loss can be adjusted against taxable income, bringing the final payable tax amount lower and offering relief to the business.<\/span><\/li>\n<\/ul>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/current-accounts\/?r=blog_cta_business_banking_all_about_financing&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Check out RazorpayX<\/a><\/div>\n<h2><span class=\"ez-toc-section\" id=\"In_IT\"><\/span><b>In IT<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Data_Accessibility\"><\/span>Data Accessibility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In a bid to help bring innovation to the IT sector at a much faster pace, the <span style=\"font-weight: 400;\">Budget 2023 emphasized on the power of data accessibility.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-11257 aligncenter\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2023\/02\/software-data-ai.png\" alt=\"software data ai\" width=\"373\" height=\"357\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/02\/software-data-ai.png 680w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/02\/software-data-ai-300x287.png 300w\" sizes=\"auto, (max-width: 373px) 100vw, 373px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Budget 2023 introduced the <\/span><a href=\"https:\/\/www.meity.gov.in\/writereaddata\/files\/National-Data-Governance-Framework-Policy.pdf\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">National Data Governance Policy<\/span><\/a><span style=\"font-weight: 400;\">, which will create a large repository of Indian datasets.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This data could be from government or private entities and will be made accessible to the research and startup ecosystem to enable innovation.<\/span><\/li>\n<li aria-level=\"1\">The National Data Governance Policy also focuses on promoting transparency, accountability, and ownership in non-personal data and dataset access.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"For_Businesses\"><\/span><b>For Businesses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h5>COVID-19 Relief<\/h5>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In Budget 2023, MSMEs that were not able to execute contracts during COVID will get a 95% return of the forfeited amount related to bid or security by government and government undertakings.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This will provide relief to Micro, Small, and Medium Enterprises that were affected by the pandemic.\u00a0<\/span><\/li>\n<\/ul>\n<h5>Credit Guarantee Scheme Revamp<\/h5>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.cgtmse.in\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">credit guarantee scheme<\/span><\/a><span style=\"font-weight: 400;\"> is also being revamped \u2013 this scheme was introduced to provide collateral-free loans to MSMEs.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The revamped scheme will enable collateral-free guaranteed credit of up to Rs 2 lakh crore and will reduce the cost of credit to about 1%.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"In_Agriculture\"><\/span><b>In Agriculture<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Budget 2023 also focused heavily on the importance of implementing technology into agriculture.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-11258 aligncenter\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2023\/02\/agriculture.png\" alt=\"agriculture\" width=\"399\" height=\"381\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/02\/agriculture.png 680w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/02\/agriculture-300x287.png 300w\" sizes=\"auto, (max-width: 399px) 100vw, 399px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The agri-tech industry and startups surrounding it will be supported with new digital public infrastructure.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This will enable \u201cinclusive, farmer-centric solutions for crop planning, credit, insurance, crop estimation, and market intelligence.\u201d<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An <\/span><a href=\"https:\/\/www.investindia.gov.in\/team-india-blogs\/budget-2023-why-agriculture-accelerator-fund-good-idea\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">agriculture accelerator fund<\/span><\/a><span style=\"font-weight: 400;\"> is also going to be set up for agri-startups in rural areas.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"For_Digital_India\"><\/span><b>For Digital India<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This new Budget introduced a Digilocker for MSMEs and big businesses, called the Entity Digilocker &#8211; a service enjoyed only by retail customers until now.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Budget also included continued support for <a href=\"https:\/\/razorpay.com\/learn\/digital-payments-india-definition-methods-importance\/\">digital payments<\/a> and digital public infrastructure. <\/span><span style=\"font-weight: 400;\">It was pointed out that digital payment transactions increased 76% in 2022.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><em>Come be a part of the digital banking revolution by supercharging your business banking!<\/em><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x\/current-accounts\/?r=blog_cta_business_banking_all_about_financing&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Digitize your Banking with RazorpayX<\/a><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Taxes\"><\/span><b>Taxes<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The most anticipated part of the Budget every year is changes made to tax policy, and this<\/span><span style=\"font-weight: 400;\">\u00a0year was no exception: the Finance Minister announced some very exciting changes!<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-11259 aligncenter\" src=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/blog-content\/uploads\/2023\/02\/taxes.png\" alt=\"taxes\" width=\"402\" height=\"384\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/02\/taxes.png 680w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2023\/02\/taxes-300x287.png 300w\" sizes=\"auto, (max-width: 402px) 100vw, 402px\" \/><\/p>\n<h5>Presumptive Taxation<\/h5>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With the Budget 2023, MSMEs with a turnover of up to Rs 3 crore and professionals with a turnover of up to Rs 75 lakh \u2013 with cash receipts of no more than 5% can avail of the \u201cpresumptive taxation\u201d benefit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Presumptive taxation is when a taxpayer is exempt from maintaining books of accounts. This offers relief to small taxpayers who find it difficult to maintain books of accounts.\u00a0<\/span><\/li>\n<\/ul>\n<h5>TDS Rate Chart for AY 2023-24<\/h5>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Another change made was to TDS: the TDS rate on the taxable part of withdrawals made from EPF was 30% but has been cut to 20%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The minimum threshold for TDS which was Rs 10,000 has been removed.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Income_Tax\"><\/span><b>Income Tax<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The biggest news of the Budget 2023 was the change to the income tax rebate limit.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Previously, people who earned less than Rs 5 lakhs were exempt from paying taxes.\u00a0 <\/span><span style=\"font-weight: 400;\">Now, that limit has been increased to Rs 7 lakhs.<\/span><\/li>\n<li>The new tax regime has now been made the default option when filing tax returns.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Here is the revised tax slab for FY 2023-24<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Income_Tax_Slab_FY_2023-24\"><\/span><strong>Income Tax Slab FY 2023-24<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td><strong>Income<\/strong><\/td>\n<td><strong>Tax Rate<\/strong><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Rs 0 &#8211; 3,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Rs 3,00,001 to Rs 6,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Rs 6,00,001 to Rs 9,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Rs 9,00,001 to Rs 12,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">15%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Rs 12,00,001 to Rs 15,00,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Rs 15,00,001+\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every year, on the 1st of February, the Finance Minister of India reads out the Budget at the Parliament.\u00a0This year, FM Nirmala Sitharaman called out some interesting changes, relating to business, startups, and entrepreneurship.\u00a0 For Startups Tax Holiday Date Revision Startups in India enjoy a \u201ctax holiday\u201d, where they don\u2019t pay taxes for the first<\/p>\n","protected":false},"author":106,"featured_media":11487,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[422],"class_list":{"0":"post-11255","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-banking","8":"tag-budget"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/11255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/106"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=11255"}],"version-history":[{"count":2,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/11255\/revisions"}],"predecessor-version":[{"id":21183,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/11255\/revisions\/21183"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/11487"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=11255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=11255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=11255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}