EY organized a session on ‘Understanding Budget 2023’ for AMCHAM’s Hyderabad Chapter members on February 2nd in Hyderabad. Mr. Naveen Agarwal, Partner Direct Tax and Ms. Aisha Hussaini, Partner Indirect Tax, EY India gave the audience a backdrop to the budget where India remains a bright spot and will continue to remain in the global spotlight. Fiscal prudence continued to be the guiding mantra for the Finance Minister while staying on the path of simplification and stability in income tax rates. The Finance Minister addressed two key priorities: the demand from the middle class on income tax relief and to make the new tax rate regime more attractive. Capital gains rollover exemption on investment in new residential property in India is now capped to INR10 crore with effect from 01 April 2024. The time limit to furnish TP documentation and other information as required by transfer pricing officer (TPO) has been reduced from 30 days to 10 days. Overall Union Budget 2023 is a balanced effort to rationalize taxes, resisting populist temptations and fostering inclusive growth while maintaining fiscal discipline.