Income Tax

CBDT issues circular explaining provisions of Finance Act, 2023

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 >>

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