Tax Updates

  Old vs. New Tax Regime: thumb rule which is better for filing ITR for F.Y. 2023-24 A.Y. 2024-25 by the taxpayers (salaried employees)..….Updated on: Apr 20th, 2023 This is continuation to the write up of detailed analysis of new tax regime, there is a lot of confusion among taxpayers (salaried employees) regarding the choice between the old and new tax regimes after FA 2023 given various incentives to encourage the adoption of the new regime. Though the new regime is now the default tax regime, the old tax regime will continue to exist. Analysis has been carried out to see which regime to be opt for in the current F.Y. 2023- 24 for payment of taxes/TDS. Briefly, in the new tax regime, taxpayers (salaried employees) cannot claim several exemptions and deductions, but the following key changes made in FA 2023 in order to encourage taxpayers to adopt the new regime attractive: > Higher Tax Rebate Limit increased to an income up to ₹7 lakhs; >  Streamlined Tax Slabs: ...

Through the  Finance Act 2023  a new clause (h) has been added to Sec. 43B of the Income Tax Act and is made applicable from assessment year 2024-25 i.e. Financial year 2023-24.  Sec. 43B with the amendment reads as under – “43B.  Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of — (a) To (g) …………… (h) any sum payable by the assessee to a micro or small enterprise beyond the time limit specified in section 15 of the  Micro, Small and Medium Enterprises Development Act, 2006 , shall be allowed (irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of accounting regularly employed by him) only in computing the income referred to in section 28 of that previous year in which such sum is actually paid by him. Provided  that nothing contained in this section,  except the provisions of clause (h) ,...