New tax regime not to compel people to move from old tax regime, but has greater advantage, says FM Sitharaman

• Feb 02, 2023
  
  
• After presenting the Union Budget 2023, Finance Minister Nirmala Sitharaman said that the new taxation regime, while offering greater incentives for the middle class, is not aimed at compelling people to move from the old regime to the new tax regime. “This country has been waiting for the direct taxation to be simplified, to become easy in terms of compliance. Therefore the new tax regime that we brought 2-3 years ago, has now got greater incentives and attractions so that people can unhesitatingly move from the old to the new. We are not compelling anyone. But the new one is now attractive as it gives greater rebates,” said Sitharaman during a press conference.
  

Income Tax

Budget 2023: Now micro enterprises with up to Rs 3 cr turnover can opt for presumptive taxation

• Feb 02, 2023
  
  
• Ease of doing business for MSMEs: Among tax benefits for MSMEs announced in the budget, finance minister Nirmala Sitharaman on Wednesday enhanced the turnover limits to be eligible for presumptive taxation. Now micro enterprises with a turnover up to Rs 3 crore from earlier Rs 2 crore and certain professionals with a turnover up to Rs 75 lakh from earlier Rs 50 lakh will be eligible to be taxed presumptively provided their cash receipts are not more than 5 per cent of total receipts.
  

Income Tax

Maturity proceeds of life insurance policies with annual premium of over Rs 5 lakh to be taxed: FM

Feb 02, 2023

An individual will have to pay tax on the maturity amount of life insurance policies where the aggregate annual premium exceeds Rs 5 lakh, according to a Budget proposal presented on Wednesday. Finance Minister Nirmala Sitharaman in the Union Budget proposed "to provide that where aggregate of premium for life insurance policies (other than ULIP) issued on or after April 1, 2023, is above Rs 5 lakh, income from only those policies with aggregate premium up to Rs 5 lakh shall be exempt".

This will not affect the tax exemption provided to the amount received on the death of a person insured. It will also not affect insurance policies issued till March 31, 2023, she said.

Nidhi Manchanda, Certified Financial Planner, Head of Training, Research & Development at Fintoo, said that one of the major setbacks that are given in the finance bill is related to the taxability of the maturity proceeds of a life insurance policy.

Income Tax

Relief for these non-ITR filers from higher TDS in budget 2023

Feb 02, 2023

There may be some individuals who are not obligated to file their income tax return (ITR). However, these individuals cannot be classified as non-filers. As a result, Union Budget 2023 has proposed changing the definition of "specified person" in sections 206AB and 206CCA of the Income tax Act, 1961, to exclude a person who is not required to submit a return of income for the assessment year relevant to the said previous year.

Income Tax

Budget: FM proposes system to lessen litigation by IT department

Feb 02, 2023

In a bid to lessen litigation in tax disputes, Finance Minister Nirmala Sitharaman on Wednesday proposed a case management system where the Income Tax department would defer filing a lawsuit if an identical question of law is pending adjudication in high courts or the Supreme Court. Presenting the Union Budget for 2023-24 in the Lok Sabha, Sitharaman said a lot of time and resources are consumed in filing appeals involving identical legal issues pertaining to income tax.

Income Tax

Winnings from online games to be taxed at flat 30%, on par with cryptos, proposes Budget 2023

Feb 02, 2023

Budget 2023 has proposed taxing winnings from online games at a flat 30%. According to the current income tax laws, these winnings are taxed as per the income tax slab applicable to the income of the individual concerned.

According to the Budget 2023 memorandum, “(viii) to amend section 115BB of the Act to exclude income from winnings from online games from the purview of the said section from the assessment year 2024-25, since it is proposed to introduce section 115BBJ to tax winnings from online games from that assessment year;
(ix) to insert a new section 115BBJ in the Act with regard to tax on winnings from online games to provide that where the total income of an assessee includes any income by way of winnings from any online game, the income-tax payable shall be the aggregate of—
• The amount of income-tax calculated on net winnings from such online games during the previous year, computed in the prescribed manner, at the rate of thirty percent;

Income Tax

Govt proposes taxation changes related to REITs, InVITs

Feb 02, 2023

Seeking to widen the tax base, the government on Wednesday proposed to tax income distributed by business trusts like REITs and InVITs in the form of debt repayments at the hands of unitholders.

Income Tax

Tax saving in new tax regime 2023-24 vs old tax regime post Budget announcements

• Feb 02, 2023

Budget 2023 has revised the income tax slabs in the new income tax regime for the financial year 2023-24. Here's a comparison of tax saving at different income levels under the new and old income tax regimes for salaried individuals.

The following calculations are based on the assumptions:
a) Section 80C benefit of Rs 1.5 lakh was taken in the old tax regime.
b) Standard deduction benefit of Rs 50,000 is taken in the old tax regime and revised new tax regime

Income Tax