Daily Archives: February 2, 2023

KEY CHANGES IN INCOME TAX BY BUDGET 2023-24

By | February 2, 2023
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KEY CHANGES IN DIRECT TAX BY BUDGET 2023-24 DIRECT TAXES Direct Tax proposals aim to maintain continuity and stability of taxation, further simplify and rationalise various provisions to reduce the compliance burden, promote the entrepreneurial spirit and provide tax relief to citizens. Constant endeavour of the Income Tax Department to improve Tax Payers Services by making compliance easy and smooth. To further improve tax payer services,… Read More »

Defining the cost of acquisition in case of certain assets for computing capital gains

By | February 2, 2023
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Defining the cost of acquisition in case of certain assets for computing capital gains BUDGET 2023-24 MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2023 The existing provisions of the section 55 of the Act, inter alia, defines the ‘cost of any improvement’ and ‘cost of acquisition’ for the purposes of computing capital gains. However,… Read More »

Prevention of double deduction claimed on interest on borrowed capital for acquiring, renewing or reconstructing a property

By | February 2, 2023
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Prevention of double deduction claimed on interest on borrowed capital for acquiring, renewing or reconstructing a property BUDGET 2023-24 MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2023 Under the existing provisions of the Act, the amount of any interest payable on borrowed capital for acquiring, renewing or reconstructing a property is allowed as a… Read More »

Alignment of provisions of section 45(5A) with the TDS provisions of section 194-IC

By | February 2, 2023
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Alignment of provisions of section 45(5A) with the TDS provisions of section 194-IC BUDGET 2023-24 MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2023 The existing provisions of the sub-section (5A) of section 45 of the Act, inter alia, provide that on the capital gain arising to an assessee (individual and HUF), from the transfer… Read More »

Rationalisation of exempt income under life insurance policies

By | February 2, 2023
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Rationalisation of exempt income under life insurance policies BUDGET 2023-24 MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2023 Clause (10D) of section 10 of the Act provides for income-tax exemption on the sum received under a life insurance policy, including bonus on such policy. There is a condition that the premium payable for any… Read More »

Preventing permanent deferral of taxes through undervaluation of inventory

By | February 2, 2023
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Preventing permanent deferral of taxes through undervaluation of inventory BUDGET 2023-24 MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2023 Assessees are required to maintain books of account for the purposes of the Act. The Central Government has notified the Income Computation and Disclosure Standards (ICDS) for the computation of income. ICDS-II relates to valuation… Read More »

Special provision for taxation of capital gains in case of Market Linked Debentures

By | February 2, 2023
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Special provision for taxation of capital gains in case of Market Linked Debentures BUDGET 2023-24 MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2023   It has been noticed that a variety of hybrid securities that combine features of plain vanilla debt securities and exchange traded derivatives are being issued through private placements and listed… Read More »

Limiting the roll over benefit claimed under section 54 and section 54F

By | February 2, 2023
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Limiting the roll over benefit claimed under section 54 and section 54F BUDGET 2023-24 MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2023 The existing provisions of section 54 and section 54F of the Income-tax, 1961 (the Act) allows deduction on the Capital gains arising from the transfer of long-term capital asset if an assessee,… Read More »

Increasing rate of TCS of certain remittances

By | February 2, 2023
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Increasing rate of TCS of certain remittances BUDGET 2023-24 MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2023 Section 206C of the Act provides for TCS on business of trading in alcohol, liquor, forest produce, scrap etc. Sub-section (1G) of the aforesaid section provides for TCS on foreign remittance through the Liberalised Remittance Scheme and… Read More »

TDS and taxability on net winnings from online games

By | February 2, 2023
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TDS and taxability on net winnings from online games BUDGET 2023-24 MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2023 Section 194B of the Act provides that the person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle or card game and other game of any… Read More »