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

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