| 1 | 10AA | Deduction available to SEZ | Insertion of new subsection | Deduction under this section can be availed only in respect of the export proceeds that are brought back into India as convertible foreign exchange within 6 months from the end of the previous year. |
| 2 | 43B | Deduction allowed on an actual payment basis | Insertion of a new provision |
- Any amount payable to MSME’s will be allowed as deduction only when they are actually paid.
- The MSME Act mandates payment to MSME’s within an agreed period of time which shall not exceed 45 days and in the absence of any agreement, within 15 days.
- If such payments are not made within the above-mentioned time limit, they shall not be allowed as a deduction for that previous year.
- Normally, as per section 43B, deduction will be allowed if payment is made on or before the due date of filing income tax return – such provision is not applicable to the above-mentioned MSME payables.
|
| 3 | 44AD | Presumptive taxation scheme – Business | Increase in turnover limit – eligibility |
- The threshold limit to opt for the presumptive scheme has been increased to Rs. 3 Crores from Rs. 2 Crores (Provided, the cash receipts do not exceed 5% of the total turnover or gross receipts)
- Any receipts via cheque or draft other than account payee shall be deemed to be receipts in cash
|
| 4 | 44ADA | Presumptive taxation scheme – Profession | Increase in turnover limit – eligibility |
- The threshold limit to opt for the presumptive scheme has been increased to Rs. 75 Lakhs from Rs. 50 Lakhs (Provided, the cash receipts do not exceed 5% of the total turnover or gross receipts)
- Any receipts via cheque or draft other than account payee shall be deemed to be receipts in cash
|
| 5 | 54 & 54F | Capital Gain Exemption | Restriction in the amount of investment |
- Under the earlier law, there was no restriction on the value of the new residential property that has to be purchased for availing exemption under sections 54 & 54F.
- The government in this budget has capped the value of the new investment to Rs. 10 Crores (i.e. you are permitted to invest in a residential house property of a value exceeding 10 crores, but the value of a new residential property to claim capital gain exemption will be restricted to Rs. 10 crores)
|
| 6 | 92D | Transfer pricing documents | Reduction in the time limit |
- As per the earlier law, the documents relating to international transactions or specified domestic transactions as required by an assessing officer can be submitted within 30 days from the date of receipt of the notice.
- This budget has reduced the time limit to 10 days
|
| 7 | 194R | TDS on benefit or perquisite | Clarification |
- TDS under section 194R will be applicable on benefits or perquisite arising in the course of business or profession
- It has been clarified that such benefits or perquisites can be in cash or kind or partly in cash or partly in kind.
|
| 8 | 196A | TDS on payments made to non-residents in respect of units of Mutual Fund | Inclusion of DTAA benefit |
- Existing TDS rate
- 20%
- Proposed rate as per Budget 2023
- 20% (or)
- Rates as mentioned in DTAA (whichever is lower)
|
| 9 | 206AB | Higher rate of tax for not filers of Income tax return | Inclusion of new subsection |
- Persons who are not required to furnish a return of Income under the provisions of the income tax act are no longer covered under this section.
|
| 10 | 206C | TCS on overseas remittance | Revision of tax rates |
- Old law
- For Overseas remittance – 5% on remittance in excess of Rs. 7 Lakhs
- For Overseas Tour packages – 5%
- New law
- For Overseas remittance – 20% without any threshold limit
- For Overseas Tour packages – 20% without any threshold limit
|
| 11 | 142(2A) | Special Audit by Department | Inclusion of a new subsection |
- As per the earlier law, an Assessing Officer may direct a Chartered accountant to do a special audit if he is of the opinion that a special audit is needed with regard to complexities/volume of accounts, the multiplicity of transactions, or doubts regarding the correctness of accounts.
New provision:
- In addition to the above, If the AO has doubts regarding the valuation of inventory, this budget has amended the section to allow the AO to appoint an independent cost auditor to verify the value of the inventory and provide him with a report.
|
