From automotive to telecom, here's how the Budget affects key sectors

Financial sector identified as one of the priority sector as part of "Vision Amrit Kaal

Automotive

• Renewed emphasis on scrapping of old vehicle of Central and State Governments
• Boost to local manufacturing – BCD increased for import of Semi-Knocked Down (SKD) and Completely Built Unit (CBU) of specified class of vehicles.
• Exemption on Specific capital goods/machinery for the manufacture of Lithium-ion cell for use in battery of electrically operated vehicle (EVs)
• Exemption extended till March 2024 on import of Lithium-ion cell for use in the battery pack of electrically operated vehicle (EVs) or hybrid motor vehicle
• Tax withholding to apply on benefit/perquisite provided in cash as well
• Payment to MSMEs to be deductible on payment basis

Financial services

• Financial sector identified as one