Budget 2023: FM Sitharaman announces direct tax proposals | Details here
1 min read . Updated: 01 Feb 2023, 03:07 PM IST
PremiumFM Nirmala Sitharaman announced several Direct Tax proposals with an aim to maintain continuity and stability of taxation, further simplify and rationalize various provisions to reduce the compliance burden, promote the entrepreneurial spirit, and provide tax relief to citizens.
The Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman announced several Direct Tax proposals with an aim to maintain continuity and stability of taxation, further simplify and rationalize various provisions to reduce the compliance burden, promote the entrepreneurial spirit, and provide tax relief to citizens.
While presenting the Union Budget 2023-24 in Parliament today she stated that “It has been the constant endeavor of the Income Tax Department to improve Tax Payers Services by making compliance easy and smooth".
The Finance Minister announced the rolling out of a next-generation Common IT Return Form for taxpayer convenience and the strengthening of grievance redressal mechanism to further improve Tax Payers' Services.
She said that the constant endeavor of the Income Tax Department is to make tax compliance easy and smooth. “Our taxpayers’ portal received a maximum of 72 lakh returns in a day; processed more than 6.5 crore returns this year; average processing period reduced from 93 days in financial year 13-14 to 16 days now; and 45 percent of the returns were processed within 24 hours."
Sitharaman said that micro-enterprises with a turnover of up to ₹2 crore and certain professionals with a turnover of up to ₹50 lakh can avail of the benefit of presumptive taxation.
She proposed to provide enhanced limits of ₹3 crore and ₹75 lakh respectively, to the tax payers whose cash receipts are no more than 5%. She also proposed to allow a deduction for expenditure incurred on payments made to MSMEs so as to support them in the timely receipt of payments.
She proposed to include payments made to such enterprises within the ambit of section 43B of the Micro, Small, and Medium Enterprises Development Act. It will be allowed on an accrual basis only if the payment is within the time mandated under the Act.
She further proposed to provide an opportunity to sugar co-operatives to claim payments made to sugarcane farmers for the period prior to the assessment year 2016-17 as an expenditure.
For better targeting of tax concessions and exemptions, Sitharaman proposed to cap deduction from capital gains on investment in residential houses under sections 54 and 54F to ₹10 crore.
