Budget 2023-24: Income Tax Deduction Allowed Only On 'Actual Payment' Of Sum Payable By Assessee To MSMEs

With the objective of promoting timely payments to Micro and Small Enterprises, Finance Minister Nirmala Sitharaman in her Budget 2023-24 speech has proposed to insert a new clause (h) in section 43B to provide that any sum payable by the assessee to a micro or small enterprise beyond the time limit specified in section 15 of the Micro, Small and Medium Enterprises Development (MSMED) Act 2006 shall be allowed as deduction only on actual payment.Section 43B of the Act provides for certain...

Budget 2023-24: Finance Minister Proposes To Increase Threshold Limit For Co-Operatives To Withdraw Cash Without TDS

In the Union Budget 2023-24, Finance Minister Nirmala Sitharaman has proposed to increase the threshold limit for co-operatives to withdraw cash without TDS.The government has proposed to amend section 194N of the Income Tax Act by inserting a new proviso to provide that where the recipient is a co-operative society, the provisions of the section shall have effect, as if for the words “one crore rupees”, the words “three crore rupees” had been substituted.Section 194N of the Income Tax Act...

39,000 Compliances Reduced, Over 3,400 Legal Provisions Decriminalized To Enhance Ease Of Doing Business In India: Finance Minister

In her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman said that for enhancing ease of doing business in India, more than 39,000 compliances have been reduced and more than 3,400 legal provisions have been decriminalized. She has also proposed to decriminalise section 276A of the Income Tax Act.Section 276A makes provision for prosecution with rigorous imprisonment up to two years in the case of a person, being a liquidator who fails to give notice in accordance with subsection...

5 Major Announcements For Middle-Class: Budget 2023-24

On February 1, the Union Budget for 2023-24 was presented in the Lok Sabha by Finance Minister Nirmala Sitharaman.Here are 5 major announcements for the middle class:1. Income Tax Rebate Limit To Be Raised To Rs. 7 Lakhs In The New Tax Regime From 5 LakhsThe individuals with income up to Rs.5 lakh do not pay any income tax in both old and new tax regimes. The Finance Minister proposed to increase the rebate limit to Rs. 7 lakh in the new tax regime. Thus, persons in the new tax regime, with...

Union Budget 2023 : FM Announces New Income Tax Rates; Slabs Reduced To 5, Exemption Raised To Rs 3 Lakhs In New Regime

In her Budget 2023-24 speech, Union Finance Minister Nirmala Sitharaman has announced that the increase in the income tax rebate limit from Rs. 5 Lakhs To Rs. 7 Lakhs in the new tax regime.For the middle class person, the proposal under the new income tax regime has been a huge relief. This would mean that an individual with an annual income of up to Rs 7 lakh will not be required to pay income tax.The new income tax system will take over as the standard system. But if someone wants to stick...

Union Budget 2023 : FM Announces Increase Of Rebate Limit; No Income Tax For Persons With Income Upto Rs 7 Lakhs In New Regime

In a major budget announcement helping the salaried middle class, Union Finance Minister Nirmala Sitharaman announced the proposal to raise the income tax rebate level to Rs 7 lakhs per annum from Rs 5 lakhs per annum."Currently, those with income upto 5 lakhs do not pay any income tax in both old and new regimes. I propose to increase the rebate limit to 7 lakhs in the new tax regime", Sitharaman said in the Parliament during her budget speech. Her announcement was welcomed by the members with...

Solid Waste Management Services To Municipal Corporation Is Exempted From GST: West Bengal AAR

The West Bengal Authority for Advance Ruling (AAR) has held that the supply of conservation and solid waste management services to the municipal corporation is exempt from GST.The two-member bench of Brajesh Kumar Singh and Joyjit Banik has noted that the functions entrusted to a municipality as listed in the Twelfth Schedule include functions like sanitation conservancy and solid waste management. The applicant's services to Howrah Municipal Corporation (HMC) may be exempted under serial number...

CENVAT Credit Can’t Be Denied For Use Of Prime Quality Materials In Manufacture: CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that there is no restriction in the CENVAT Credit Rules that the Appellants should not use prime quality materials for the manufacture of final products.The single bench of P.K. Choudhary (Judicial Member) has observed that as long as there is no dispute regarding the receipt and consumption of the inputs of a duty-paid character, the benefit of the CENVAT credit cannot be denied.The appellant/assessee...

CBDT Notifies Income Tax Exemption On California Public Employees Retirement System

The Central Board of Direct Taxes (CBDT) has allowed the California Public Employees Retirement System a Section 10 (23FE) exemption.The Central Government has specified that the pension fund, namely, the California Public Employees Retirement System, shall be eligible for income tax exemption in respect of the eligible investment made by it in India on or after January 25, 2023, but on or before March 31, 2024, subject to the fulfilment of the various conditions.The assessee shall file a return...

Material Referred In “Reasons To Believe” Not Supplied To Assessee, Reassessment vitiated: Rajasthan High Court

The Rajasthan High Court has held that the material referred to in the "reasons to believe" was not supplied to the assessee, and the entire proceedings for the reopening of the assessment and leading to the consequential assessment stand vitiated in law.The division bench, led by Chief Justice Pankaj Mittal and Justice Rekha Borana, ruled that a statement recorded under Section 132 (4) of the Income Tax Act can only be used as evidence for making an assessment if it is made in context with...

Delay By State To Issue Necessary Certificates: ITAT Quashes Revision Order

The Calcutta Bench of Income Tax Appellate Tribunal (ITAT) has quashed the revision proceedings initiated in the name of the deceased person.The revenue department acted quickly after receiving the legal heir certificate, according to the two-member bench of George Mathan (Judicial Member) and Arun Khodpia (Accountant Member). However, there has been a delay at the level of the state government in issuing the necessary certificates. Fault cannot be placed on the revenue or the assessee.The...

CBIC Extends Requirement Of Health Certificate With The Import Of Food Consignments

The Central Board of Indirect Taxes and Customs (CBIC) has extended the requirement of a health certificate accompanied with the import of food consignments.Based on a reference from an FSSAI order from August 3, 2022, and its clarification from September 26, 2022, certain food consignments must have a health certificate when being imported.By order dated January 10, 2023, the FSSAI has extended the date of implementation of the order by another two months, making it effective as of March 1,...