CBDT issues circular explaining the provisions of the finance act, 2023
CBDT has issued Circular No. 1/2024 dated 23rd January 2024 giving explanatory Notes to the Provisions of the Finance Act, 2023.
The Finance Act, 2023 was passed by the Parliament, received the assent of the President on 31st March, 2023 and has been enacted as Act No. 8 of 2023. This circular explains substance of the provisions of the FA 2023 relating to direct taxes.
The FA 2023 has specified the existing rates of income-tax for the assessment year 2023-24 and the rates of income-tax on the basis of which tax has to be deducted at source and advance tax has to be paid during financial year 2023-24; and amended certain sections of the Income-tax Act, 1961 (‘the Act’).
The circular gives the detailed explanation to the following provisions as amended by the income-tax act, 1961 carried out through Finance act, 2023:
| Section | Particulars |
| 2 | Definitions |
| 9 | Income deemed to accrue or arise in India |
| 10 | incomes not included in total income |
| 10AA | Special Provisions in respect of newly established units Special Economic Zones |
| 11 | Income from property held for charitable or religious purposes |
| 12A | Conditions for applicability of sections 11 and 12 |
| 12AB | Procedure for fresh registration |
| 13 | Section 11 not to apply in certain cases |
| 17 | “Salary”, “perquisite” and “profits in lieu of salary” defined |
| 28 | Profits and gains of business or profession |
| 35D | Amortization of certain preliminary expenses |
| 43B | Certain deductions to be only on actual payment |
| 43D | Special provision in case of income of public financial institutions, public companies etc |
| 44AB | Audit of accounts of certain persons carrying on business or profession |
| 44AD | Special provision for computing profits and gains of business on presumptive basis |
| 44ADA | Special provision for computing profits and gains of profession on presumptive basis |
| 44BB | Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils. |
| 44BBB | Special provision for computing profits and gains of foreign companies engaged in the siness of civil construction, etc., in certain turnkey power projects |
| 45 | Capital Gains |
| 47 | Transactions not regarded as transfer |
| 48 | Mode of computation |
| 49 | Cost with reference to certain modes of acquisition |
| 50AA | Special provision for computation of capital gains in case of Market Linked Debenture |
| 54 | Profit on sale of property used for residence |
| 54EA | Capital gain on transfer of long-term capital assets not to be charged in the case of investment in specified securities. |
| 54EB | Capital gain on transfer of long-term capital assets not to be charged in certain cases |
Download CBDT Circular No. 1/2024 Click Here >>
- Jewellery purportedly received from grandparent under Will added as unexplained credits
- SC lays down tests to determine if a debt is financial debt or operational under IBC
- Commonality of directors of companies does not mean deposits received was bogus
- Application though named as rectification but if tax is not legitimate, it also touches merit: HC
- Cost of acquisition as on 01.04.1981 taken as per valuer report by reverse indexing of FMV
