Finance Minister Proposes To Ease Deduction Claim On Amortisation Of Preliminary Expenditure

In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman has proposed to ease claiming of deduction on amortisation of preliminary expenditure.At present for claiming amortisation of certain preliminary expenses, the activity is to be carried out either by the assessee or by a concern approved by the Board. In order to ease the process of claiming amortisation of these expenses it is proposed to remove the condition of activity in connection with these expenses to be carried out...

Finance Minister Proposes 15% Concessional Tax To Promote New Manufacturing Co-Operative Society

In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed 15% concessional tax to promote new manufacturing co-operative society. In order to promote the growth of manufacturing in co-operative sector, a new co-operative society formed on or after 01.04.2023, which commences manufacturing or production by 31.03.2024 and do not avail of any specified incentive or deduction, is proposed to be allowed an option to pay tax at a concessional rate of 15 per cent similar to...

Finance Minister Proposes To Carry Forward Accumulated Losses & Unabsorbed Depreciation Allowance In Case Of Amalgamation After Strategic Disinvestment

In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman announced the measures for facilitating certain strategic disinvestments. To facilitate certain strategic disinvestments, it was proposed to allow carry forward of accumulated losses and unabsorbed depreciation allowance in the case of amalgamation of one or more banking company with any other banking institution or a company subsequent to a strategic disinvestment, if such amalgamation takes place within 5 years of...

Union Budget 2023: Income Tax Exemption For Development Authorities

In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed the income tax exemption to development authorities etc.It has been proposed to provide exemption to any income arising to a body or authority or board or trust or commission, (not being a company) which has been established or constituted by or under a Central or State Act with the purposes of satisfying the need for housing or for planning, development or improvement of cities, towns and villages or for regulating any...

Finance Minister Proposes Tax Incentives To International Financial Services Centre

In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed tax incentives to the international financial services centre (IFSC).Over the past few years several tax concessions have been provided to units located in the International Financial Services Centre (IFSC) under the Act to make it a global hub of the financial services sector.In order to further incentivize operations from IFSC, it was proposed to extend the date for transfer of assets of the original fund, or of its...

5 Things Budget 2023-24 Brings In For Investors

The Finance Minister Nirmala Sitharaman has presented the Budget 2023-24. Here are 5 things budget 2023-24 brings in for investors:1. No Exemption on proceeds of insurance policies with premiums more than Rs. 5 LakhsIn order to curb misuse, it is proposed to tax income from insurance policies (other than ULIP for which provisions already exists) having premium or aggregate of premium above Rs 5,00,000 in a year. Income is proposed to be exempt if received on the death of the insured person. This...

Conversion Of Physical Gold To Electronic Gold Receipt Will Not Attract Any Capital Gains: Finance Minister

In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed that the conversion of physical gold to Electronic Gold Receipt and vice versa is proposed not to be treated as a transfer and not to attract any capital gains. This would promote investments in the electronic equivalent of gold.In order to promote the concept of Electronic Gold, it is proposed to exclude the conversion of physical form of gold into EGR and vice versa by a SEBI registered Vault Manager from the purview of...

Budget 2023-24: Payment Received By Agniveers From Agniveer Corpus Fund Proposed To Be Exempted From Taxes

In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed to make various amendments in order to allow deduction from the computation of total income of Agniveer, any contribution made by him or the Central Government to his Agniveer Corpus Fund account and to exempt from tax any payment received by Agniveer or his nominee, from the Agniveer Corpus Fund.It is proposed to insert a new clause (12C) in section 10 of the Income Tax Act to provide that any payment received from the...

Finance Minister Proposes To Extend Date Of Incorporation For Eligible Start-Ups For Exemption

In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed to extend the date of incorporation for eligible start-ups for exemption.The existing provisions of the section 80-IAC provides for a deduction of an amount equal to 100% of the profits and gains derived from an eligible business by an eligible start-up for three consecutive assessment years out of ten years, beginning from the year of incorporation, at the option of the assessees subject to three conditions.Firstly, the...

Finance Minister Proposes Penalty For Cash Loan/Transactions Against Primary Co-operatives

Finance Minister Nirmala Sitharaman in her Budget 2023-24 speech has proposed penalty for cash loan/transactions against primary co-operatives.The government has proposed to amend section 269SS of the Income Tax Act to provide that where a deposit is accepted by a primary agricultural credit society or a primary co-operative agricultural and rural development bank from its member or a loan is taken from a primary agricultural credit society or a primary co-operative agricultural and rural...

Budget 2023-24: Relief To Start-Ups In Carrying Forward And Setting Off Losses

Finance Minister Nirmala Sitharaman in her Budget 2023-24 speech has provided relief to start-ups in carrying forward and setting off of losses.Section 79 of the Income Tax Act restricts carrying forward and setting off of losses in cases of companies, other than the companies in which the public is substantially interested. It prohibits setting off of carried forward losses if there is change in shareholding. The carried forward loss is set off only if at least 51% shareholding (as on the last...

Budget 2023-24: Finance Minister Announces Relief For Sugar Co-operatives From Past Demand

In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed that for sugar co-operatives, for years prior to A.Y. 2016-17, if any deduction claimed for expenditure made on purchase of sugar has been disallowed, an application may be made to the Assessing Officer, who shall recompute the income of the relevant previous year after allowing deduction up to the price fixed or approved by the Government for such previous year.Sugar factories operating in the co-operative sectors in...