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Key Highlights of the union Budget -2023
1.
Tax
payers’ portal received a maximum of 72 lakh returns in a day;
2.
processed
more than 6.5 crore returns this year
3.
Average
processing period reduced from 93 days in financial year 13-14 to 16 days now
4.
and 45 per cent of the returns were processed
within 24 hours.
5.
We
intend to further improve this, roll out a next-generation Common IT Return
Form for tax payer convenience, and also
plan to strengthen the grievance
6.
Redressed
mechanism
7.
They
AI to work on it
8.
|
SCHEME |
PRESENT |
PROPOSED |
|
MSME
|
2
CR |
3
CR |
|
PROFESSIONAL |
50
LAKHS |
75
LAKHS |
|
****
|
|
|
***
Not more than 5 & should in cash transaction
CO-OPERATIVE
SOCIETY:-
1.
Co
–operative society tax slab reduced to 15% available as new manufacturing
companies till 31/03/2024
2.
Payment
pending to farmer available as deduction A.Y. 2016-17
3.
Cash
limit enhanced to Rs. 2 lakhs per member
4.
NO
tds upto Rs. 3 Cr cash withdrawal
Start
up
1.
Start
up benefit extended to 31/03/2024
2.
Carried
forward losses extended to 7 to 10 years
Appeal
1.
100
Joint commissioner will support and disposing of appeal
2.
Less
scrutiny this year
BETTER
TARGETING OF TAX CONCESSIONS
1. Section 54 & 54F exemption investment limited to 10 crores
Rationalisation
1. The threshold limit minimum 10K for tds on gaming transaction removed .
For gaming online at the end of year or at the time
of withdrawal of amount tax will be payable
2. Conversion of physical gold into digital gold not a capital gain
3. Reducing TDS rate 30 to 20% on epf withdrawal for non-pan cases
Other major
proposals in the Finance Bill relate to the following:
·
Extension
of period of tax benefits to funds relocating to IFSC, GIFT
·
City
till 31.03.2025;
·
Decriminalisation
under section 276A of the Income Tax Act;
·
Allowing
carry forward of losses on strategic disinvestment including
·
that
of IDBI Bank; and
·
Providing
EEE status to Agniveer Fund
Personal Income
tax
1.
New
regime limit extended from 5 lakhs to 7
lakhs
2.
For
old regime upto 5 lakhs no income tax
3.
New
regime new slab as under
|
0-3 |
NIL |
|
|
3-6 |
5% |
|
|
6-9 |
10% |
45K
Tax benefit |
|
9-12 |
15% |
20%
reduction |
|
12-15 |
20% |
|
|
>15 |
30% |
|
|
SURCHARGE
REDUCED FROM 37 % TO 25% |
REDUCED
FROM 42.74% TO 39% |
|
4.
For
pensioner and salaried person income of
above Rs. 15.5 get rebate of Rs. 52.5K
5.
Leave
encashment increased from 3 lakhs to 25
lakhs
TCS on foregin remittance for
education above Rs. 7 lakhs @.5 % for other 20%
Promoting timely
payments to Micro and Small Enterprises
In order to promote timely
payments to micro and small
enterprises, it is proposed to
include payments made to such
enterprises within the ambit of
section 43B of the Act. Thus,
deduction for such payments would
be allowed only when actually
paid. It will be allowed on
accrual basis only if the payment is
within the time mandated under
the Micro, Small and Medium
Enterprises Development Act.In
order to promote timely payments to micro and small enterprises, it is proposed
to include payments made to such enterprises within the ambit of section 43B of
the Act.
Thus,deduction for such payments
would be allowed only when actually
paid. It will be allowed on
accrual basis only if the payment is within the time mandated under the Micro,
Small and Medium Enterprises Development Act.
Incentives to
IFSC
Relocation of funds to IFSC has
certain tax exemptions, if the
relocation is before 31.03.2023.
This date is proposed to be extended to 31.03.2025. Further, any distributed
income from the offshore derivative instruments entered into with an offshore banking
unit is also proposed to be exempted subject to certain conditions.
Facilitating
certain strategic disinvestments
To facilitate certain strategic
disinvestments, it is proposed to allow carry forward of accumulated losses and
unabsorbed depreciation allowance in the case of amalgamation of one or more
banking company with any other banking institution or a company subsequent to a
strategic disinvestment, if such amalgamation takes place within 5 years of
strategic disinvestment. It is also proposed to modify the definition of ‘strategic
disinvestment’.
To
value stock lesser than book value
It is proposed to provide for
some provisions to minimise risk to revenue due to undervaluation of inventory
Other than ULIP
insurance policies issued after 1st april,2023
o
Exempt
upto Rs. 5 lakhs
o
Rest
will be taxable
·
Senier Citizen saving scheme( SCSS)
limit enhanced from 15 to 30 lakhs
·
Azadi Ka Amrit
Mahotsav Mahila Samman Bachat Patra
·
Rs. 2 lakhs @ 7.5% for 2 years upto 31/03/2025 for women or girl only
·
POST MIS limit
4.5 to 9 lakhs enhanced for single , for
joint 9 to 15 lakhs
CA NITIN PATHAK
