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Taxation Central Ministry of Finance Income Tax Act, 1961

Introduction of Union Budget for Financial Year 2023-2024

01-Feb-2023 | NA

Finance Minister Nirmala Sitharaman has introduced the Union Budget for Financial Year 2023-2024. The highlights of the Finance Bill, 2023-2024 from the perspective of Direct and Indirect Taxes are given below- 1. Proposal to roll out a next-generation Common IT Return Form for taxpayer convenience. 2. Rebate limit of Personal Income Tax is to be increased to Rs. 7 Lakhs from the current Rs. 5 Lakhs in the new tax regime. 3. Tax structure in the new personal income tax regime, introduced in 2020 with six income slabs, to change by reducing the number of slabs to five and increasing the tax exemption limit to Rs. 3 Lakhs. 4. A higher limit of Rs. 3 Crore for TDS on cash withdrawal is to be provided to Cooperative societies. 5. Minimum threshold of Rs. 10,000/- for TDS to be removed and taxability relating to online gaming to be clarified. 6. Number of basic customs duty rates on goods, other than textiles and agriculture, reduced to 13 from 21. 7. Minor changes in the basic customs duties, cesses, and surcharges on some items including toys, bicycles, automobiles, and naphtha. 8. Excise duty exempted on GST-paid compressed biogas contained in blended compressed natural gas. 9. CGST Act to be amended to raise the minimum threshold of tax amount for launching prosecution under GST from one crore to two crores; to reduce the compounding amount from the present range of 50 to 150 percent of tax amount to the range of 25 to 100 percent; decriminalize certain offenses; to restrict the filing of returns/statements to a maximum period of three years from the due date of filing of the relevant return/statement; and to enable unregistered suppliers and composition taxpayers to make the intra-state supply of goods through E-Commerce Operators (ECOs).

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