Personal
Tax
Ø No change in tax rate under the old
regime.
Ø Receipts from Life insurance are
taxable if the gross annual premium payment exceeds Rs. 5 Lakhs. The net amount
is taxable under the head Income from other sources for new policies taken
after March 23.
Ø Limit of Leave encashment of Rs. 3 Lakhs increase to Rs. 25 Lakhs. (to be verified not available in the Memorandum but was there in the budget speech)
New
vs old tax regime.
Ø No tax payable under the new tax
regime for income below Rs. 7 Lakhs
Ø The new tax slab under the new tax
regime is given below. (Section 115BAC).
·
Nil-3
Lakhs NIL
·
3-6
Lakhs 5%
·
6-9
Lakhs 10%
·
9-12
Lakhs 15%
·
12-15
Lakhs 20%
·
Above
15 Lakhs 30%
Ø A standard deduction of Rs. 50,000/- is
allowed under the new tax regime for salaries less than Rs. 15 Lakhs
Ø The new regime has become the
default option now and there will be the option to select the old tax regime.
Ø A new exemption u/s 80CCH was
introduced which is the contribution made to the Agniveer corpus fund and
deduction of same allowed under the new tax regime.
Ø The surcharge of 37% was replaced
by 25% only when opting for the new tax regime.
Corporate
Tax
Ø Vendor payment to MSME is covered
under section 43B. it means deduction only when payment is made to the MSME
vendor.
Capital
Gain.
Ø There is a limit of Rs. 10 Cr now
on claiming exemption u/s 54 & 54F.
Ø Net income from Market linked
debenture taxable as short-term capital gain only under new section 50AA.
Ø The conversion of Physical gold
into electronic gold is not considered a Transfer.
Ø The cost of improvement excludes
interest paid on the property for which deduction is claimed under the head
House property.
Ø The cost of self-generated
intangibles is NIL.
TDS
Ø There is no threshold on TDS for
online gaming w.e.f 01.07.23.
Ø TDS on debentures introduced w.e.f 01.04.23.
Ø TCS on foreign remittance provided
in below table.
|
Nature
of remittance |
Old
rate |
New
rate 01.07.23 |
|
Education |
0.5% |
0.5% |
|
Tour
|
5% |
20% |
|
Another
case |
5% |
20% |
Ø TDS u/s 194-IC which is TDS on
capital gain from JDA of land should be on the stamp value of the property.
Ø TDS u/s 192A relates to TDS on
payment of PF which is 10% and for non-pan case it is 30%. Now 30% replaced by 20% for the non pan case.
Assessment
Ø JCIT now can conclude the first
level of appeal pending at CIT-A.
Ø The time limit to furnish documents
for transfer pricing assessment was reduced from 30 days to 10 days.
Ø The timeline to complete the
assessment before December has now again been extended to March.
Ø Sunset clause of section 276A till
March 23 which relates to prosecution.
Others
Ø Presumptive taxation limit
increased for business from Rs. 2 Cr to 3 Cr and for professional service from
Rs. 50 Lakhs to Rs. 75 Lakhs only when they are getting 95% of payment via
digital mode.
Ø Winning online games is taxable @ 30% under
the new section 115BBJ.
Ø The condition of a feasibility
study conducted by a concern approved by the board has been removed for section
35D which relates to the claim of deduction on amortization of preliminary
expenses.
Ø No more exemption to news agencies
under section 10(22B).
Ø Repayment of debt received from the
business trust is taxable under the head Income from other sources.
Ø A penalty of Rs. 5000/- for
providing inaccurate particulars in the annual information return u/s 285BA.
Ø Non-files u/s 206AB now do not
include the persons not required to file an Income tax return.
Ø No 10AA deduction in case the
return is not filed within the time limit of 139(1).
Ø The time limit to file Form 10 for
charitable institutions has been postponed to July 31 from September 30.
Co-operative
Society.
Ø Tax rate of 22% u/s 115BAD &
15% u/s 115BAE introduced to match with 115BAA & 115BAB.
Start-Ups
Ø The benefit of exemption u/s 80-IAC
extended from March 23 to March 24.
Ø In case of a change of
shareholding, the loss can be carried forward to 10 years in place of the
earlier 7 years.
GST
Ø
Composition
dealers can now supply goods inter-state and through e-commerce operators also.
Ø
ITC
to be reversed pertaining to the supply of warehoused goods before clearance
for home consumption.
Ø
ITC
blocked on CSR done by the company.
Ø
Section
23 has been given overriding effect on section 24 retrospectively.
This means that persons making only
exempt supplies and agriculturists now not liable to take registration even
though required under section 24.
Ø GSTR-1, 3B, 8, 9, cannot be filed
after 3 years from the due date. (Exceptions to be notified)
Ø 90% of refund to be granted
considering provisionally accepted ITC also. (Earlier it was not allowed)
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