Budget 2023 refresher.

 Budget 2023 refresher.

The budget 2023 has been announced on February 1, 2023, and below is the summary of important amendments to refresh your knowledge.

FY 2023.

·       Outstanding to MSME vendor now also covered under section 43B and payment is now allowed on the year of payment.

·       Gain from non -specified mutual fund purchase after April 1, 2023, is STCG only.

·       Gain from Market linked debenture (MLD) is now STCG only. There is no grandfathering for the old provision.

·       The cost of self-generated assets is deemed to be NIL.

·       For Individuals, New tax regime is default option.  Further, new tax slabs were introduced & standard deduction allowed for new tax regime.

·       Leave encashment tax exemption limit increased from 3 Lakh to 25 Lakh.

·       TCS on foreign remittance towards tours & travel increased from 5% to 20%.

·       TDS on debentures @ 10% introduced.

·       TDS on winnings from online games @ 30% on net winnings as per the rules prescribed

·       The benefit of the new tax regime also extended to AOP/BOI.

·       Receipt of investment from nonresident also covered under Angel Tax.

·       TDS on foreign royalty & FTS increase to 20%.

·       The conversion of physical gold to Electronic Gold Receipt and vice versa is proposed not to be treated as a transfer and not to attract any capital gains.

·       Final receipt of redemption of debentures from Business trust will be taxable in the hand of unit holder as Income from other source which is taxable at slab rate.

 

FY 2022.

·       Introduced section 194R to tax perquisite of business of profession.

·       Cess is not allowed as a deduction.

·       Rule 8D is mandatory even when there is no exempt income.

·       Penalties for offences under foreign law is not allowed as deduction.

·       Foreign dividend no more taxable at concessional rate.

·       Rate of surcharge in case of dividend income, short-term capital gains covered u/s 111A

and long-term capital gains covered u/s 112 and 112A is restricted to maximum of 15%

·       Sec 14A disallowance on exempt income shall be applicable even if the exempt income is not accrued or arised or received in the PY.

·       Scheme for taxation of Virtual digital assets is introduced

·       Specified person u/s 206AB and 206CCA amended to reduce the non filing years from previous 2 years to previous one year