CBDT issued Circular Explaining Amendments made in Income Tax Act through Finance Act 2023

The Central Board of Direct Taxes (CBDT) has released a circular explaining the amendment of the Income Tax Act, 1961 which was made through the Finance Act 2023.

The Finance Act, 2023, passed by Parliament, gained the President’s assent on March 31, 2023, and was enacted as Act No. 8 of 2023. The circular describes itself as “This circular explains the substance of the provisions of the Finance Act 2023 relating to direct taxes.”

Changes made by the FA 2023 in the Income Tax Act:

(i) specified the existing rates of income tax for the assessment year 2023-24 and the rates of income tax on the basis of which tax has to be deducted at source and advance tax has to be paid during the financial year 2023-24; and

(ii) amended certain sections of the Income-tax Act, 1961 (‘the Act’).

The Finance Ministry underlines significant aspects in the circular, giving in-depth clarifications to ensure a nuanced understanding of the modifications made to various legislation by the Finance Act. This will assist stakeholders such as chartered accountants, income tax officials, taxpayers, and others in fully understanding the revisions.

For Official Circular Download PDF Given Below: