Why the new income tax regime has limited appeal?
- Feb 08, 2023
- Ever since the finance minister presented the budget on 1 February, most investors have been trying to figure out whether they should shift from the old income tax regime to the new one. Shubham Asawa, 29, though, was quick to calculate his tax liability under the new tax slabs proposed in the concessional regime. “The reduced tax rates look quite lucrative. But, after considering the deductions and exemptions that I claim, I will still benefit under the old tax regime," he said.
Tax reins tightened, charitable trusts have no margin of error
- Feb 04, 2023
- The Budget proposes a slew of amendments that would cost a charitable trust dearly for even the slightest slip — such as a few days’ delay in filing a renewal application. Tax exemption could be lost if there is a delay in filing the I-T return.
Tightening of controls will make an already difficult existence for trusts even more challenging, state experts.
CBDT will issue scheme for Budget proposal to dispose small appeals: Chairperson Nitin Gupta
- Feb 04, 2023
- The Central Board of Direct Taxes (CBDT) will soon come out with a scheme on the Budget announcement of reducing pendency of appeals related to TDS default issues, board chairperson Nitin Gupta said.
In her Budget speech on Wednesday, Union Finance Minister Nirmala Sitharaman said she proposes to deploy about 100 joint commissioners of the Income Tax department for disposal of small appeals and to reduce the pendency of appeals at the commissioner level.
No angel tax on past foreign investments in startups
- Feb 04, 2023
- India will provide grandfathering to past investments by non-residents in startups and the proposed changes to the angel tax provision were prospective said Central Board of Direct Taxes (CBDT) chairman Nitin Gupta in an interview to ET. He said past investments will be grandfathered unless there was some incriminating information.
"The provision would apply prospectively," he said.
The government has proposed to amend the so-called angel tax provision or the Section 56(2) (viib) of the income tax act in the budget. The provision states that any premium paid by an investor in excess of the fair market value (FMV) of the shares of an unlisted company is taxable in the hands of the company at a rate of 20% or above.
Acquisition cost of intangible assets now nil
- Feb 03, 2023
- The Budget proposals specify that the cost of acquisition or the cost of improvement of an intangible asset or any other right, shall be nil.
This provision was introduced as courts in many cases have ruled against the I-T department that the capital gains computation mechanism would fail where the cost of acquisition of any asset cannot be determined. Earlier, the I-T Act was amended to provide that the cost of acquisition of goodwill would be nil. “This now covers intangibles like brands, trademarks and commercial rights,” said Girish Vanvari, founder of Transaction Square.
How many times can you switch between new tax regime and old tax regime?
- Feb 03, 2023
- Budget 2023 has made the new income tax regime as the default option for income taxpayers. Hence, unless an individual specifies that he/she is opting for the old income tax regime, then revised new income tax regime will be applicable
Now the question that many taxpayers will ask is: will the benefit of switching between old and new income tax regime continue?
Yes, an individual can switch between the new tax regime and the old tax regime in every financial year. However, the facility to switch between the new and old tax regimes is available only for those individuals having salaried income and does not have business income
FPIs stare at higher tax on debt investment
- Feb 03, 2023
- Foreign portfolio investors (FPIs), who are enjoying a concessional tax rate of 5% on the interest income of rupee-denominated bonds, could be staring at a higher tax outgo after June 30, 2023.
FPIs enjoy a lower TDS rate or withholding tax of 5% on the overall interest earned on such bonds issued by Indian firms and government securities since 2013 under Section 194LD of the Income Tax Act.
Govt wants to eventually move to exemption-free I-T regime with lower taxes: Revenue Secy
- Feb 03, 2023
- A day after the Budget announcement of a revamped personal income tax regime, Revenue Secretary Sanjay Malhotra on Thursday said the government would eventually like to move to a simple and exemption-free tax structure with lower rates.According to an analysis by the Revenue Department, an individual earning Rs 15 lakh in a year will have to claim deductions of at least Rs 3.75 lakh under the old tax regime, otherwise the new revamped tax regime with lower rates proposed in 2023-24 will be more beneficial.
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- income Tax
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