Budget 2023: extended tax holiday will apply to less than 1% Indian startups, say experts

• Feb 02, 2023
  
  
• The budget has proposed to extend tax holiday offered to startups under the Startup India scheme, but industry representatives said the measures will apply to less than 1% of 84,000 startups registered with the Department for Promotion of Industry and Internal Trade (DPIIT).
  
  In the Union Budget for 2023-24, finance minister Nirmala Sitharaman said the date of incorporation for startups to avail tax benefits has been extended by a year to March 31, 2024, and that the tax incentives will be applicable on startups in the first 10 years of incorporation, up from seven years earlier.
  
  However, for startups to be eligible for availing the tax incentives, their turnover should be less than Rs 100 crore in any of the previous financial years
  

Income Tax

Revised income tax slabs, rates for new tax regime announced in Budget 2023

• Feb 02, 2023
  
  
• Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxe
  

Income Tax

Tax cuts, factory incentives: Here's what to watch for in upcoming Budget

Jan 31, 2023

India’s budget on Wednesday will test the government’s resolve to stay fiscally prudent as expectations of lower taxes, wider social security net and further boost to production gather steam before national elections.
Finance Minister Nirmala Sitharaman may tweak income-tax slabs to provide relief to the nation’s vast middle class and increase spend on the poor through programs such as rural jobs, while ramping up financial incentives for local manufacturing, according to economists and reports in local media.

Social welfare programs would get “appropriate” allocation as “the gap between have and have nots has widened,” said India Ratings & Research Pvt. economist Devendra Kumar Pant. Inflation has eroded spending power and relief in tax “can provide the much-needed thrust to the consumption demand.”

Prime Minister Narendra Modi’s final full-year spending plan before 2024 polls comes amid rising interest rates and slowing global growth, which could make him desist from outright populism. Economists in a Bloomberg survey see fiscal deficit narrowing to 5.9% of gross domestic product, from 6.4% this year, needing another year of record borrowing

Income Tax

I-T Goes After Rs 7.7 Trillion Tax Arrears

Income Tax

• Jan 07, 2023
  
  
• If you are one of those individuals who missed the last date of December 31, 2022, to file a belated or revised income tax return for FY 2021-22 (AY 2022-23), fret not. There is still a chance for you to file the ITR.
  
  Budget 2022 has introduced the option to file an updated ITR (ITR-U) for those individuals who have missed the chance to file a tax return for a financial year.
  
  Before this, an individual could file income tax returns of three types: original (filed on or before the due date), belated (filed on or before December 31) or revised (submitted after the original is filed but on or before December 31).
  
  But taxpayers cannot file an updated ITR or an ITR-U before the assessment year comes to an end — March 31, 2023, in this case.
  

Income Tax

CBDT extends compliance deadline for capital gains tax waiver on residential properties

Jan 10, 2023

In a move that will provide relief to a number of taxpayers, the income tax department has extended the time limit for a number of compliances related to long-term capital gains tax exemption, till March 31, 2023.

The Central Board of Direct Taxes (CBDT) had, in June 2021, provided a relaxation for certain compliances to be made by taxpayers including investment, deposit, payment, acquisition, purchase and construction for the purpose of claiming any exemption under the provisions contained in Section 54 to 54GB of the Income-tax Act, 1961.

Income Tax

Gross direct tax revenue jumps 24.58 pc to Rs 14.71 lakh crore for FY23

• Jan 12, 2023
  
  
• Tata Group’s ambitious super app is expected to meet just half of the sales target in its debut year, forcing the sprawling Indian corporate to review its digital strategy, people familiar with the matter said. Tata Digital Pvt.’s online platform, Tata Neu that went live in April, will see sales of about $4 billion in the year to March 31 compared with the $8 billion target set at the beginning of 2022, the people said, asking not to be named as the information is not public. The company, helmed by Chief Executive Officer Pratik Pal, is overhauling the strategy to scale up the business profitably, they said.
  
  The underwhelming performance of a project that Tata Group Chairman Natarajan Chandrasekaran championed as the future of the $128 billion conglomerate shows the uphill task in taking on entrenched e-commerce rivals such as Amazon.com Inc. and Walmart Inc.’s Flipkart. Tata Neu, India’s first super app in the pipeline since at least mid-2020, was modeled on the lines of China’s ubiquitous Alipay and WeChat but ran into technical glitches and customer complaints soon after its launch. A spokesperson for Tata Group didn’t respond to an email seeking comment.
  

Income Tax

Gross direct tax revenue jumps 24.58 pc to Rs 14.71 lakh crore for FY23

Jan 12, 2023

Tata Group’s ambitious super app is expected to meet just half of the sales target in its debut year, forcing the sprawling Indian corporate to review its digital strategy, people familiar with the matter said. Tata Digital Pvt.’s online platform, Tata Neu that went live in April, will see sales of about $4 billion in the year to March 31 compared with the $8 billion target set at the beginning of 2022, the people said, asking not to be named as the information is not public. The company, helmed by Chief Executive Officer Pratik Pal, is overhauling the strategy to scale up the business profitably, they said.

The underwhelming performance of a project that Tata Group Chairman Natarajan Chandrasekaran championed as the future of the $128 billion conglomerate shows the uphill task in taking on entrenched e-commerce rivals such as Amazon.com Inc. and Walmart Inc.’s Flipkart. Tata Neu, India’s first super app in the pipeline since at least mid-2020, was modeled on the lines of China’s ubiquitous Alipay and WeChat but ran into technical glitches and customer complaints soon after its launch. A spokesperson for Tata Group didn’t respond to an email seeking comment.

Income Tax