Budget 2023: Summary of Direct Tax Proposals:

Budget 2023: Summary of Direct Tax Proposals The Union Budget for 2023-2024 will continue the stated aim of a stable and predictable tax system while also introducing additional reforms that will advance the goal of establishing a reliable tax system. According to Smt. Nirmala Sitharaman, suggestions for taxes and duties will further simplify the tax code, encourage taxpayers to file their taxes voluntarily, and lessen legal disputes.

Major Direct Tax Proposals (From Speech)

1. Rollout of next-generation Income Tax Return forms. 2. New limit for Peresemptive Taxation Scheme u/s 44AD & 44ADA has been enhanced to 3 crore & 75 Lacs respectively for those who opt for New Taxation regime. 3. Expense deduction to MSME to be allowed on the payment basis. 4. New cooperatives manufacturing tax @ 15% if upto 31.03.24. 5. Higher loan limit /cash deposit Rs 2 lacs for primary co-operatives society - Rural Development Bank. 6. Startups:

a) Date of incorporation for. startup extended to 31.03.24.

b) Extension of CF losses 7 yrs in case of change in shareholders.

7. Selective scrutiny + More CIT to dispose off small appeals. 8. Extension of tax benefits for IFSC. 9. Personal Income Tax. a) Tax rebate limit extended to 7 lacs (new regime). b) Change in tax slabs & new tax Rates. [caption id="attachment_194916" align="alignnone" width="1280"] Know new rebate under section 87A: Budget 2023[/caption] c) Salaried Class and Pensioners (incl family pensioners): Standard deduction extended d) Highest Surcharge reduced from 37% to 25% Now MMTR : 39% e) Leave encashment exemption (pvt) increased from 3 Lacs to 25 Lacs. f) New tax regime is now default tax regime-Old tax regime will continue.