At a time when the country’s economy faces challenges from a host of global factors, a steep rise in inflation, and a possible GDP growth slowdown in FY24, the Hon’ble Finance Minister Ms. Nirmala Sitharaman presented the last full budget of the Modi 2.0 government, ahead of the next year’s parliamentary elections.

Click here to read BDO India’s analysis of the Budget 2023-24 in a proprietary Annual initiative - INDIA UNION BUDGET 2023-24 - An Overview. 

Union Budget 2023, has arrived at a time when the Indian economy shows signs of resilience in a post pandemic world. While the world grapples with signs of slowing down, the Budget presses forward to inspire a nation on the path of growth. Against this backdrop, Taxsutra in association with BDO in India is delighted to present to you a special webinar on “Union Budget Analysis”.

Click here to access the webinar.

Key Direct Tax Proposals from FM's Budget Speech

  • Aim to maintain continuity, further rationalisation of provisions.
  • Next generation ITR to be rolled out 
  • Enhanced limits for presumptive taxation for MSMEs and Professionals at Rs. 3 cr & Rs.75 lacs turnover, respectively
  • New Cooperatives into manufacturing to enjoy lower tax rate of 15%
  • Relaxation in TDS on cash withdrawal in cooperative sector
  • Startups to be allowed carry forward of losses on change in shareholding for 10 years
  • Propose to deploy 100 Jt. Commissioners to reduce appeals pendency
  • Extends the date of incorporation for start ups for income-tax benefits upto Mar 31, 2024
  • Reducing litigations in income tax - 100 joint commissioner to dispose of pending appeals
  • Propose to limit capital gains exemption on investment in residential housing to Rs.10 Cr.
  • Online Gaming TDS threshold of Rs.10,000 to be removed
  • Extension of period for relocation of funds into IFSC upto Mar'25
  • EEE status to Agniveer Fund
  • Conversion of gold into electronic gold receipts and vice versa not to be treated as capital gains
  • 5 major announcements on Personal Income-tax: 1. Rebate limit increased to 7 Lakh INR in the New Tax Regime, 2. Proposes to reduce the number of slabs to 5 and increase the exemption limit to 3 Lakhs (0-3 lakhs - NIL, 3-6 lakhs 5%, 6-9 lakhs 10%, 9-12 lakhs 15%, 12-15 lakhs 20%, above 15 lakhs 30%)
  • Highest surcharge to be reduced from 37% to 25%, resultant reduction in MMR to 39%
  • New income tax regime to become default tax regime but taxpayers allowed to take benefit of the old regime

Copy of Finance Bill and Memorandum to Finance Bill, 2023

As the run-up to the India Union Budget 2023 begins, BDO India shares key expectations from this year's Budget announcements, in the Pre Budget campaign: Countdown to the India Union Budget 2023 (a two-volume series)

Click here to read Volume 1.

Who knew that the advent of pandemic would unleash a blitzkrieg putting Virtual Digital Assets (VDAs) in prominence as never before. As other investment options fell out of favour, investors found haven in Cryptocurrency and other VDAs driving the market. Cryptocurrency or Crypto has been around for long enough that several countries have developed regulations to cater to the ever-growing thirst of investors looking for investment avenues. Inconsistency in the tax position around Crypto have been a cause of concern for Crypto operations in India from the very incipient stage which has been exacerbated by the new VDA tax regime introduced by the Union Budget 2022. Ever since, unlike a fairytale, the Crypto industry seems to be facing a hard landing.

For a deeper insight, Taxsutra presents a Special Series “Crypto Taxation – Impact Assessment & Corrective Measures” with inputs from Esya Centre’s Report Virtual Digital Asset Tax Architecture in India: A Critical Examination.

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BDOBDO is a leading professional services organisation and are global leaders of the mid–tier, operating in more than 167 countries. The team at BDO in India consists of over 4600 professionals led by more than 270 partners and directors operating out of 14 offices, across 11 key cities. We offer Assurance, Tax, Advisory, Business Services & Outsourcing and Digital Services for both domestic and international clients across a range of industries. We believe in quality underpinning all that we do and our strategic focus on increasingly using technology to deliver our services compliments our vision. Bringing innovative thinking to a digitally evolving market is helping us reinstate and better offer our long standing promise of – delivering quality driven by value and up to date thinking. The Tax team at BDO India consists of industry experts, well positioned to service clients with their diverse experience. We provide integrated advice on complex tax issues and able representation before regulatory authorities. Combining the broad experience and technical expertise of our professionals, we offer bespoke solutions on planning, advisory and implementation of key initiatives pertaining to tax issues that confront domestic and international corporate bodies.

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