Blog 2023-03-12

Rajesh Sareen & Associates

2022-03-12

Budget Highlights 2023-2024

1. Limit of Turnover under Section 44AD for a small taxpayer engaged in business is proposed to increase from Rs 2 Crores to 3 Crores.

2. Limit of Turnover under Section 44ADA for small taxpayer engaged in profession is proposed to increase from Rs 50 lacs to 75 lacs.

3. Higher Tax Deduction at Source (TDS) limit of RS. 3 Crore for Cooperatives as per amendment in section 194N of the Act.

4. The basic tax exemption limit has been increased to Rs.3 lakh (from Rs.2.5 lakhs).

5. The amount of rebate under section 87A of the Income Tax Act has been hiked under the new tax regime to taxable income of Rs 7 lacs.

6. Rebate limit increased to 7 lakhs in new tax regime.

7. Only 5% tax on Individual annual income of 9 lacs to pay Rs. 45,000 as tax.

8. Standard Deduction increased for salaried class and pensioners.

9. New IT Return Forms introduced for easier filing of tax returns.

10. 100 new Joint Commissioners to be appointed for disposal of small appeals.

11. TDS reduced on Employee Provident Fund withdrawal from 30% to 20%.

12. Section 54 and 54F to be amended to cap the deduction from capital gains on re- investment in residential houses to Rs 10 crores.

13. Highest tax rate reduced from 42.74% to 39%.

14. Propose to reduce higher surcharge rate from 37 % to 25% in new tax regime.

15. Leave Encashment: Limit increased from Rs. 3,00,000 to Rs. 25,00,000.

16. Promote domestic manufacturing and exports.

17. Tax exemption on Capital Goods and Lithium batteries.

18. Deduction for expenditure incurred to MSME business entities are allowed only on payment basis instead of accrual basis as per amendment in section 43B of the Act.

19. Gold, silver, diamonds, cigarettes, and imported rubber to get more expensive.

20. New co-operatives entities who commences manufacturing on or before 31.03.2024 can avail the benefits of concessional tax rate at 15%.

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