Taxmann Budget Guide 2023-24

Taxmann Budget Guide 2023-24 Description

This book is a commentary on the proposed provisions of the Finance Bill 2023. It consists of three divisions:

• Direct Tax Laws (13+ Chapters | 80+ Sub-Topics)
• Indirect Tax Laws (3+ Chapters | 20+ Sub-Topics)
• Corporate & Allied Laws (1 Chapter | 3+ Sub-Topics)

All complex provisions have been explained with illustrations which helps the readers to comprehend the new provisions in a simplified manner.

The Present Publication is the 2023 Edition, authored by Taxmann’s Editorial Team. The noteworthy features of the book are as follows:

• Income-tax Proposed Amendments at a Glance
• [Tax Rates] applicable for the assessment year 2024-25
• [Threadbare Analysis] on all proposed amendments
• [Examples/Illustrations] to understand all complex provisions
• [Charts & Tables] to get an overview of the provisions

The coverage of the book is as follows:

• Direct Tax Laws
  • Tax Rates Reckoner
    • Tax Rates
    • Rates of Surcharge
    • When should one opt for the alternative tax regime?
    • Concessional Tax Rates to promote new manufacturing Cooperative Societies
    • Winnings from Online Games
  • Taxation of Life Insurance Policies
    • Concept and Type of Life Insurance
    • Current Tax Provisions
    • Proposed Amendments
    • Analysis of amendments proposed in Section 10(10D)
    • Overview of tax on various Life Insurance Policies
  • Charitable and Religious Trusts
    • Introduction
    • Direct Grant of Regular Registration or Approval
    • Application for Provisional Registration or Approval
    • Deduction for Donation to Other Trusts
    • No Benefit of Rollback of Exemption Provisions
    • No Benefit of exemption provisions by filing an updated return of income
    • Time limit for filing form for accumulation of income
    • Incomplete or false information in the registration application can attract cancellation of registration/approval
    • Provisions of accreted tax extended to trusts not applying for re-registration or re-approval
    • Treatment of application out of corpus, loans or borrowings
  • Income from Business or Profession
    • Increase in the Threshold for Audit [Section 44AB]
    • Clarification about Benefits or Perquisites may be in cash or in-kind [Section 28(iv)]
    • Relaxation in the conditions to claim a deduction for preliminary expenses [Section 35D]
    • More expenses are added to the list of deductions allowed on a payment basis [Section 43B]
    • Categorisation of NBFC [Section 43D]
  • Capital Gains
    • Maximum Exemption under Section 54 or Section 54F shall not exceed Rs. 10 Crores
    • Exemption on conversion of gold to electronic gold receipts and vice versa
    • No double deduction for interest on housing loan
    • Cost of acquisition and cost of improvement of an intangible asset shall be nil
    • Special provisions for taxation of capital gains from market-linked debentures
    • Rationalising meaning of consideration in JDA transactions
    • Tax Incentives to IFSC [Section 47(viiad)]
  • Other Income
    • Expanding the scope of deeming provisions to gifts received by not-ordinary residents [Section 9]
    • Angel Tax on receiving excess share application money or premium from non-resident investors
    • Sum received from business trust to be taxable as residuary income
  • Carry Forward and Set Off of Losses
    • Relief to start-ups in carrying forward and setting off of losses [Section 79]
    • Facilitating certain strategic disinvestment [Section 72A and Section 72AA]
  • Deductions and Exemptions
    • Tax benefits to persons enrolled under Agnipath Scheme
    • Extension in the outer date for the incorporation of Start-up company [Section 80-IAC]
    • Regulation of Alternative Investment Funds
    • Eliminate double taxation of non-residents’ income from offshore derivatives instruments
    • Exemption for news agencies under Section 10(22B) withdrawn
    • Return filing and timely inward remittance of proceeds for Section 10AA exemption
    • Removal of certain funds from Section 80G deduction
    • Removal of redundant provisions
    • Exemptions to income of development authorities
  • TDS/TCS
    • Relief from special provisions from a higher rate of TDS/TCS for non-filers of Income-tax returns [Section 206AB and Section 206CCA]
    • Increase in the rate of TCS on certain remittances
    • TDS rate on payment of EPF withdrawal reduced where PAN of EPF holder isn’t available
    • Deduction of tax at source from winnings from online games
    • Removal of exemption from TDS on payment of interest on listed debentures to a resident
    • Applicability of threshold limit in case of TDS on winning from lottery, crosswords or horse races
    • Raising the limit for cooperative societies to take out cash without TDS
    • Clarificatory amendment in Section 194R
    • Benefit of treaty rate the time of TDS under Section 196A
    • Lower/Nil TDS certificate can be obtained for income received from the business trust
  • Assessments
    • Rationalisation of the limitation period of completion of an assessment
    • Inquiry for valuation of inventory
    • Set off and withholding of refunds in certain cases
    • Assistance to an authorised officer during search and seizure
    • Rationalisation of reassessment provisions
    • Modification in assessment – Relief for sugar cooperatives
    • TDS credit for income disclosed in past years’ ITR
  • Penalties and Prosecutions
    • Account holders to pay the penalty for misreporting in SFTs
    • Penalty and prosecution if the deductor fails to ‘ensure payment of TDS’
    • Insertion of sunset clause under Section 276A
    • No appeal against the order denying immunity from the penalty for under-reporting of income
  • Appeals
    • Appeal can be filed to the ITAT against the penalty order passed by the CIT(A)
    • A new appellate authority of the Joint Commission (Appeals) is introduced
    • Extension of time limit for disposing of pending rectification applications by the interim board of settlement [Section 245D]
  • Transfer Pricing
    • Business transactions with cooperative societies within the ambit of specified domestic transaction
    • Ten days time period to furnish transfer pricing report
  • Miscellaneous
    • Exclusion of NBFC from Thin Capitalisation
    • Uniform methodology for valuation of residential accommodation to employees
    • Adjusting advance tax in computing interest for updated return under Section 234B
    • Amendments in penalty provisions related to cash loans/transactions against primary cooperatives
• Indirect Tax Laws
  • Goods and Services Tax Act
    • Proposal to allow composition dealers and unregistered dealers to affect the supply of goods through ECOs
    • Proposal to reverse ITC or pay tax on non-payment to vendors within 180 days
    • Value of exempt supply under Section 17(3) is proposed to include the supply of goods from bonded warehouse
    • Proposal to block ITC on CSR expenditure under Section 17(5)
    • Provisions of non-requirement of registration is proposed to be given overriding effect
    • Filing of GST Returns/statements proposed to be restricted to a maximum period of 3 years
    • Proposal to align provisional refund provisions with the present scheme of self-assessed ITC
    • Proposal to provide the manner of computation of period of delay for calculation of interest on delayed refunds
    • Imposition of penalty on ECO for furnishing incorrect information
    • Proposal to decriminalise certain offences under the GST law
    • Proposal to increase the threshold limit for prosecution to Rs. 2 Crores
    • Amendments proposed in the provisions relating to the compounding of offences
    • Proposal to insert a new Section for allowing consent-based sharing of information furnished by taxable person
    • Proposal to give retrospective effect for inclusion of in-bond sales and High Sea sales under Schedule III
    • Proposal to amend the definition of OIDAR services and non-resident taxable persons
    • Specific place of supply provisions for services of transportation of goods outside India is proposed to be omitted
  • Central Sales Tax Act
    • CESTAT is Proposed to Function as Authority to Settle Inter-State Disputes under CST Act
  • Customs Law
    • Proposal to exclude specified conditional exemption notifications from a validity period of 2 years
    • Proposed time limit of 9 months from the date of filing applications for passing final order by Settlement Commission
    • Retrospective amendments in the provisions relating to Anti-Dumping Duty, Countervailing Duty and Safeguard Measures
  • Customs Tariff and Central Excise Duty
    • Customs Duty Rate Changes
    • Changes in Central Excise Duty
• Miscellaneous
  • Corporate & Allied Laws
    • Amendment to the Indian Stamp Act, 1899
    • Amendment to the Prohibition of Benami Property Transaction Act, 1988
    • Amendment to the Securities Contracts (Regulation) Act, 1956
    • Amendment to the Government Savings Promotion Act, 1873

Taxmann Budget Guide 2023-24