04/02/2023
*Income Tax, News Key changes in Budget 2023*
🌹 *Income Tax Act*
New Income tax Slabs:– There will be no tax for income up to Rs 3 lakh
🍃 Surcharge rate reduced :- to reduce the highest surcharge rate from 37% to 25%
🍃 *New tax rates announced :- enhanced income tax rebate limit up to Rs 7 lakh under new tax regime*
🍃 ITR processing period reduced :- income tax returns processing period has been reduced by 16 days,
🍃 New I-T return forms introduced :- introduced new Income Tax return (ITR) forms for easier filing
🍃 lower tax rate for new co operative societies:- lower tax rate of 15% to new co operative societies.
🍃 Only 5% tax on Individual’s Annual income of 9, 00,000 only to pay Rs. 45,000 as tax.
🍃 Common IT form to be rolled out and grievance redressal system to be strengthen
🌹 *Enhanced limits for Presumptive taxation*
🍃 Sec 44AD – Rs.3 crore – Allowed for Micro businesses
🍃 Sec 44ADA – Rs.75 lakhs Professionals u/s 44ADA – 75 lakhs – certain professionals, respectively, who have less than 5% cash receipts.
🍃 An income tax benefit has been extended by a year till 2024 for startups.
🍃 Carry forward of loss benefit from 7 years to 10 years allowed for startups
🍃 100 joint commissioners will be deployed to dispose of small appeals in Income Tax.
🍃 Tax concession granted :- From Capital Gains On investment in Residential House – Sections 54 and 54F to Rs.10 Crores.
🍃 TDS rate reduced to 20% on taxable withdrawal of EPF.
🍃 *Sec 87A Rebate – Currently, income up to Rs. 5 Lakh do not pay any income tax. It is proposed to increase the Income limit to Rs.7 Lakh which will be applicable to those who opted under the New Regime only.*
🍃 *6 income slabs in the new regime are now to be changed to 5 slabs*
*Basic exemption upto 3 Lacs,*
03-06 Lakh. 5%,
06-09 Lakh 10%,
09-12 Lakh 15%
12-15 Lakh 20%
> 15. Lakh 30%
🌹 *Salaried and pension:-* 🍃 standard deduction in a new regime with over Rs.15.5 lakhs is Rs.52,500
🍃 Limit on tax exemption for leave encashment is increased from 3,00,000 to 25,00,000
🌹 *New IT regime as default tax regime. Still, old regime will be available for tax assesses to choose.*
🌹 *Indirect Taxes*
1. Customs duty on goods of textiles, toys, bicycle reduced from 21 to 13%
2. To promote Green Mobility – Will exempt excise duty on GST- based green compressed Biogas
3. To promote Electronics manufacture- relief on customs duty for camera lens and lithium battery
4. Television – Basic customs duty for import of TV panel cut to 2.5%
5. Basic Custom Duty on Electric kitchen chimney increased
6. Basic customs duty brought to “0” for denatured ethyl alcohol
7. Customs duty on key inputs will be reduced to enhance the export of Marine products, such as shrimp feed.
8. Customs duty to increase in silver bars
9. Duty increased on ci******es
