Key highlights of Budget 2023 : Indirect Tax and Direct Tax
Key highlights of Budget 2023 from indirect tax perspective mentioned below:
b) The
import duty on articles which are made of precious metals and on imitation
jewellery is being increased. However, Social Welfare Surcharge is exempted on
them.
c) To boost
export of lab grown diamond (LGD), the basic customs duty on import of seeds
used to manufacture LGD is reduced to Nil.
d) The basic
customs duty reduced on import of inputs which are used in manufacture of
aquatic feed.
e) The basic
customs duty is reduced on import of camera lens use in mobile phone and on
import of open cells of TV panels.
f) The basic
customs duty is increased on import of kitchen chimney, bicycles, toys,
compounded rubber.
g) Out of
196 exemptions, 146 exemptions are being extended by one year i.e. upto
31.03.2024 and of the remaining some are extended for two years and some are
extended for five years. And some are discontinued w.e.f. 31.03.2023.
h) 9 month
time limit fixed to dispose of the case by Settlement Commission.
Part-B: GST
a) Composition
scheme can be opted by the person supplying goods through e-commerce operator
that will help small traders using e-commerce platform.
b) Supply of
warehoused goods to any person before clearance for home consumption, would be
treated as exempt supply for the purpose of calculation of reversal of input
tax credit under Rule 42/43 of CGST Rules.
c) Input tax
credit would not be allowed on goods or services used in CSR activities.
d) Time
limit is fixed i.e. 3 years upto which a delayed GST return can be filed. In
otherwords, GST return for a tax period cannot be filed after 3 years.
e) The
changes proposed in GST council for decriminalizing the offences under GST are
being made effective.
f) A
specific section 158A is inserted in CGST Act, for sharing the information of
taxpayers with other agencies.
g) Retrospective
effective (w.e.f 01.07.2017) is given to provisions of para 7, 8(a), 8 (b).
According to these paras the transactions from non-taxable territory to
nontaxable territory, transaction in warehouse before clearance of goods, high
seas sales; these transactions are treated as neither as supply of goods nor as
supply of services.
Direct Taxes
1. Common IT form and grievance redressal system
2. MSME - avail benefit of presumptive taxation increased to
44AD to 3 crores
Professionals u/s 44ADA - 75 lakhs
Provided receipt in cash doesn't exceed 5%
3. MSME-TDS only on payment for deduction
4. Co-operatives tax
-15%
Higher limit of 2 lakh per member for cash deposit in
agricultural banks
Higher limit of Rs. 3 crores on TDS for cooperative
societies
5. Startups
To avail startup benefits from 31-03-2023 to 31-03-2024
6. 100 new joint commissioners for appeal
7. S.54 to S.54F capped at 10 crores
8. TDS on Online gaming -
9. TDS 30% to 20% on taxable portion of EPF
10. Extending funds for GIFT and IFSC
Personal Income Tax
1. Rebate for income upto 7 lakhs u/s 87A in the new tax
regime
2. New tax regime from
0- up to 3 lakhs Nil
3- up to 6 lakhs- 5%
6- up to 9 lakhs 10%
9- up to 12 lakhs 15%
12- upto 15 lakhs 20%
Above 15 lakhs- 30 %
3. Standard deduction for new tax regime for Rs. 15.5 lakhs
or more -52,500
5. Limit on tax exemption for leave encashment is increased
from 3,00,000 to 25,00,000
6. New income tax regime default regime
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