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Lok Sabha passes Finance Bill; tax benefits for debt mutual funds removed

In a relief to taxpayers opting for deductions and exemption-free new tax regime, individuals earning marginally higher income than no-tax ceiling of Rs 7 lakh will continue to pay nil tax. NEW DELHI: The Lok Sabha on Friday approved The Finance Bill 2023 with 64 official amendments including providing tax relief to some taxpayers opting for new tax regime, and removing long-term tax benefit for debt mutual funds to bring them at par with other interest earning instruments. Under the new tax regime with effect from April 1, if a taxpayer has an annual income of INR 7 lakh s/he pays no tax. But if s/he has income of INR 7,00,100 s/he pays tax of INR 25,010. Thus an additional income of INR 100 leads to tax of INR 25,010. The amendment provides that the tax payable should not be more than the income that exceeds INR 7 lakh. This means, an individual having income up to INR 7,27,700 could stand to benefit from this marginal relief. Other amendments include raising the tax rate on royalty

Experts welcome amendments related to withholding tax hike, other measures in Finance bill

With the Finance Bill 2023 having been passed in Lok Sabha through voice vote, it has suggested a slew of amendments namely hike in the withholding tax from 10 per cent to 20 per cent on royalty and fees for technical services payments to non-residents and waiver of surcharge on capital gains earned by GIFT Category III.

5 income tax rule changes announced in Budget 2023

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