Union Budget 2023-24. Direct Tax Highlights

Union Budget 2023-24. Direct Tax Highlights

The Union Finance Minister Ms. Nirmala Sitharaman will present Budget 2023-24 in Parliament tomorrow on 1st February 2023 at 11 AM. The Budget Session of the Parliament has begun today.

Watch live budget speech and live updation of Tax Proposals at this page

Key Highlights of the Direct Tax Proposals in Budget 2023-24 are as under:

• Max limit for savings schemes deposit by senior citizens enhanced 
• Roll out of next gen IT return forms
• Enhanced limit of turnover for presumptive tax of MSMEs and professionals  
• Number of reliefs to Cooperative sector
• Startups – extension of date of incorporation for income tax benefits  
• Appointment of joint CIT for disposal of small cases
• Section 54/54F exemption limit for investment in residential house limited to Rs. 10 crores
• Section 276A – decriminalization
• Rebate u/s 87A limit increased to Rs. 7 lakhs in new tax regime
• New Tax Regime – Tax slabs reduced in and tax exemption limit increased to Rs. 3 lakhs 
• Standard Deduction increased to 52000 in New Tax Regime for income up to 15 lakhs 
• Highest surcharge rate reduced from 37% to 25% in New Tax Regime
• Basic tax exemption limit and rates of income tax unchanged 
• default tax regime made the default one. However taxpayers shall have option to opt otherwise
• Leave Encashment Exemption limit enhanced to 25 lakhs 

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• AO is under an obligation to assign reasons for rejecting explanation of the assessee
• CBIC issues SoP for clearance of imported goods through Foreign Post Offices
• Sale deed executed with full knowledge of only part consideration paid, not void – SC
• No fault in serving notice to last known address when PAN data was not updated – ITAT
• Investment by firm through capital introduced by partners cannot be treated as unexplained