The Finance Bill 2023 amendments passed in India include changes to the budget proposal for taxation of real estate investment trusts (Reits) and infrastructure investment trusts (InvITs). The loan repayment distribution component from Reits and InvITs need not be treated as income from other sources, but instead gets capital gains tax treatment for a certain number of years. This amendment has brought relief to investors as capital gains attract just 10% tax if held for the long term, against the tax on other income that is at individual s slab rates.
From April 1, new income tax rates will come into effect. From now on, the new tax regime will be the default regime. Under the new tax regime, people earning up to Rs 7 lakhs per annum don’t have to pay taxes.
Income Tax Rules: Major changes in income tax slabs to increased tax rebate limit, and no LTCG tax benefit on debt mutual funds are some of the changes that will be effective from 1 April 2023. aaa