Aditya Birla Sun Life Mutual Fund

POSITIVE NEGATIVE
Introducon of standard deducon of `50,000 under new tax regime Income tax exempon in case of maturity
SALARIED Increase in the basic exempon limit and revised tax slabs under the new tax regime proceeds of insurance policies with an
aggregate premium of more than `5 lakh issued
PROFESSIONALS Maximum deposit limit for monthly income account scheme to be enhanced from `4.5 lakh to on or aer April 1, 2023 has been removed
`9 lakh for single accounts and from Rs 9 lakh to `15 lakh for joint accounts
TDS exempon from interest payments by listed
Mahila Samman Bachat Patra: One-me new small savings scheme for a 2-year period with a debentures withdrawn
deposit facility of up to `2 lakh for women/girls at a fixed rate of 7.5% with a paral
withdrawal opon Basic custom duty on imitaon jewellery raised
from 20% or `400 per kg to 25% or `600 per
Income limit for rebate of income tax increased from `5 lakh to `7 lakh in the new regime kg, whichever is higher
Increase in tax exempon limit to `25 lakh from `3 lakh on leave encashment will benefit Custom duty on precious metals such as
non-government salaried employees nearing rerement planum and silver raised from 20% to 25%
Reducon in basic custom duty on parts of open cell of TV panels and heat coils of electric Basic custom duty on electric kitchen chimney
kitchen chimney can lead to value addion raised from 7.5% to 15%
Reducon in basic customs duty on camera lens and its inputs/parts for use in manufacture of Basic custom duty on toys, bicycles, automobiles
camera modules of mobile phones and connuaon of concessional duty on lithium-ion cells and naphtha raised
for baeries for another year
Reducon of basic custom duty on seeds used in manufacturing lab grown diamonds.
Enhancement in the outlay for PM Awas Yojana by 66% to over `79,000 crore to provide
affordable housing to both rural and urban populaon

HOW TO BEAT • As tax arbitrage on endowment insurance policies has reduced, investors can
consider other managed investment products as investment alternaves
THE BUDGET • Form 15G/15H to be submied, as applicable, to ensure TDS is not deducted
• Domesc opons should be preferred where imported inputs have become expensive

Infusion of `9,000 crore in the corpus of the Credit Guarantee Scheme for MSMEs enables
SME addional collateral free guaranteed credit of `2 lakh crore and reduces the cost of credit by
1%
OWNERS Deducon for expenditure incurred on payments to MSMEs to be allowed on an actual
payment basis easing cash flows for MSMEs
Increase in the threshold for MSMEs to avail the benefit of presumpve taxaon from `2 crore
to `3 crore if cash receipts are not more than 5%
MSMEs that failed to execute contracts during the pandemic period will get a refund of 95% of
the forfeited amount related to bid or performance security
An Enty Digilocker will be set up to enable MSMEs to securely store and share documents
online
The government will launch a new sub scheme called PM Matsya Sampada Yojana with
targeted investments of `6,000 crore to further enable acvies of fishermen, fish vendors
and MSMEs
Concessional basic customs duty of 2.5% on copper scrap has been connued to ensure the
availability of raw materials for secondary copper producers who are mainly in the MSME
sector

HOW TO BEAT • Ulise the presumpve taxaon scheme by shiing the receipts away from cash
THE BUDGET

The highest surcharge rate on income above `5 crore to be reduced from 37% to 25% under Income tax exempon in case of maturity
HIGH NET the new tax regime. The increase in exempon limit, revised tax slabs and reducon in proceeds of insurance policies with an
WORTH surcharge lowers the effecve maximum tax rate from approximately 43% to 39% aggregate premium of more than `5 lakh issued
on or aer April 1, 2023 has been removed
INDIVIDUALS
Conversion of gold to electronic gold receipt and vice versa will not be treated as capital gains
Threshold to avail the benefit of presumpve taxaon enhanced from `50 lakh to `75 lakh for Income from market-linked debentures shall be
professionals, if cash receipts are not more than 5% subject to taxaon as short-term capital gains
tax at applicable rates
The TDS rate for income from mutual fund units of a non-resident to be 20% or the rate as per
the tax treaty whichever is lower, provided the tax residence cerficate has been submied Deducons from capital gains arising out of sale
of residenal house under secons 54 and 54F
Integrated IT portal for investors to reclaim unclaimed shares and unpaid dividends from the have been capped at 10 crore
Investor Educaon and Protecon Fund Authority
Income distributed by business trusts (for
example, REITS/InvITs) other than those
classified under dividend, interest or rent shall
be taxable in hands of unitholders. Proviso
effecve from April 1, 2024
Foreign remiances for purchase of overseas
tour programmes and remiances under the
Liberalised Remiance System (LRS) for
purposes other than educaon or medical
treatment will aract TCS at 20% compared with
5% earlier
TDS exempon from interest payments by listed
debentures withdrawn
Deducon for interest claimed on borrowings to
acquire, renew or reconstruct a house property
not to be added in the cost of acquision at the
me of sale
Custom duty on import of arcles of precious
metals and automobiles increased

HOW TO BEAT • As arbitrage between MLDs and endowment insurance policies has reduced,
investors can consider other managed investment products as investment alternaves
THE BUDGET • Form 15G/15H to be submied, as applicable, to ensure TDS is not deducted

Maximum deposit limit enhanced for senior cizens savings schemes from `15 lakh to `30 TDS exempon from interest payments by
RETIRED lakh listed debentures withdrawn
INDIVIDUALS Maximum deposit limit for monthly income account scheme to be enhanced from `4.5 lakh to
`9 lakh for single accounts and from `9 lakh to `15 lakh for joint accounts
Mahila Samman Bachat Patra: One-me new small savings scheme for a 2-year period with a
deposit facility of up to `2 lakh for women/girls at a fixed rate of 7.5% with a paral
withdrawal opon
Income limit for rebate of income tax increased from `5 lakh to `7 lakh in the new regime
Increase in tax exempon limit to `25 lakh from `3 lakh on leave encashment will benefit
non-government salaried employees nearing rerement
Integrated IT portal for investors to reclaim unclaimed shares and unpaid dividends from the
Investor Educaon and Protecon Fund Authority
Standard deducon of `15,000 under family pension introduced under the new tax regime
TDS rates reduced to 20% from 30% on withdrawal of taxable component of EPF in case of
individuals not having PAN

HOW TO BEAT • Form 15G/15H to be submied, as applicable, to ensure TDS is not deducted
THE BUDGET

Mahila Samman Bachat Patra: One-me new small savings scheme for a 2-year period with a Increase in basic custom duty of silver
deposit facility of up to `2 lakh for women/girls at a fixed rate of 7.5% with a paral
HOME MAKERS withdrawal opon.
Increase in basic custom duty on arcles made
of gold, silver and planum
Reducon of basic custom duty on seeds used in manufacturing lab grown diamonds Increase in basic custom duty of electric kitchen
Reducon in basic customs duty on camera lens and its inputs/parts for use in manufacture of chimney from 7.5% to 15%
camera modules of mobile phones and connuaon of concessional duty on lithium-ion cells Rise in custom duty on imitaon jewellery from
for baeries for another year 20% or `400 per kg to 25% or `600 per kg,
Reducon in basic custom duty on parts of open cell of TV panels and heat coils of electric whichever is higher
kitchen chimney can lead to value addion
Increase in basic custom duty of toys, bicycles,
automobiles and naphtha

HOW TO BEAT • Domesc opons should be preferred where imported inputs have
THE BUDGET become expensive

Source : Based on the Union Budget speech by the Hon’ble Finance Minister on 1st Feb 2023.
This document has been prepared by Aditya Birla Sun Life AMC Limited (ABSLAMC) for informaon purposes only and should not at any point of me be construed as an offer or solicitaon of an offer for purchase of any
securies/instruments or to the units of Aditya Birla Sun Life Mutual Fund. Market views/ outlook expressed herein are for general informaon only and do not have regards to specific investment objecves, financial
situaon and/or the parcular needs of any specific person who may have receive this informaon. Wherever possible, all the figures and data given are dated, and the same may or may not be relevant at a future date.
The data contained in this document may be based on certain assumpons and/or compiled from sources, which ABSLAMC believes to be reliable, but cannot guarantee its accuracy or completeness. For data reference to
any third party in this material, no such party will assume any liability for the same.
Further, the opinions, esmates and facts referred to in this document constute our views as of current date and are subject to change without noce and ABSLAMC is under no obligaon to update the same. These
views/outlook alone are not sufficient and should not be used for the development or implementaon of an investment strategy and should not be construed as investment advice to any party. All recipients of this
material should exercise due care and make their own invesgaon (including if necessary, obtaining the advice of tax/legal/accounng/financial/other professional(s) and read the scheme related documents prior to
taking of any decision, acng or oming to act. While utmost care has been exercised, ABSLAMC or any of its officers, employees, personnel, directors make no representaon or warranty, express or implied, as to the
accuracy, completeness or reliability of the content and hereby disclaim any liability arising from the use of this material in any manner. The recipient alone shall be fully responsible /are liable for any decision taken on the
basis of this material. Please note that this is not an adversement.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.