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) ,...

 and Options (F&O) Trading is a popular activity amongst taxpayers due to availability of  multiple online trading platforms. The Income Tax provisions on F&O trading need to be analysed carefully. Meaning of F&O Trading F&O Trading comprises of trading in futures and options. They are classified under Derivatives. Derivatives are securities whose value is derived from the price of an underlying asset. Futures is a contract made on a trading exchange to buy or sell a security at a predetermined price on a predetermined date and specified time in future. Example: Investor who plans to invest in gold can either buy physical gold or can trade in derivative of gold i.e. enter into a futures contract to trade gold at a predetermined future rate. Options is a contract between buyer and seller which gives the buyer a right to buy or sell the security on a specific date at an agreed upon price. In Futures, the buyer does not have an option to cancel the contrac...

MCA has vide its notification dated 21 st February, 2019 notified an ordinance for banning the Unregulated Deposit Scheme with immediate effect. Ordinance is named ‘ The Banning of Unregulated Deposit Schemes Ordinance, 2019 ‘. Deposit –  Deposit means  an amount of money received by way of an  advance  or  loan  or  in any other form , by any deposit taker with a promise to return whether after a specified period or otherwise, either in cash or in kind or in the form of a specified service,  with or without any benefit in the form of interest , bonus, profit or in any other form,  but does not include –   Amounts received from Bank Amounts received from Public Financial Institution or NBFC Amount received from Government, from any other source whose repayment is guaranteed by Govt, from any statutory authority constituted under Parliament  or a state legislature Amounts received foreign Govt, foreign banks, foreign instit...