Jobaaj Stories
The Lok Sabha passed the Finance Bill 2023 with amendments yesterday, despite the opposition demanding a Joint Parliamentary Committee (JPC) investigation into the Adani group. The Finance Bill which was passed yesterday with several revisions, including the addition of 20 new sections, and it contains ideas for taxes and government spending.
Finance Bill 2023 key amendments include
- The securities transaction tax (STT) is to be increased by 23.5 percent and 25 percent, respectively, on the sale of options and futures contracts.
- According to the Finance Bill 2023, investments in debt funds—mutual funds with less than 35 percent invested in Indian company equity—will now be considered short-term capital gains.
- Taxes paid by foreign corporations on royalties or technical fees have increased from 10% to 20%.
- Additionally, startups failed to get any significant respite from the proposed change in the angel tax regime, which might hamper foreign funding for young companies.
- There is no change to the 7 lakh limit. Only marginal relief is proposed, to be provided to taxpayers earning a little more than 7 lakhs.
- Currently, if LRS (Liberalised Remittance Scheme) is sent outside of India, there is a TCS (Tax Collection at Source). As a result, there is no TCS when a person sends money to Gift City. It is suggested that TCS apply to all LRS, even those located within India, to achieve treatment equivalence.
During the House proceedings, opposition members raised slogans and held placards demanding a JPC probe into allegations against the Adani group. As slogans continued, the proceedings were adjourned till March 27.
The passing of the Finance Bill 2023 with amendments will impact taxpayers in various ways, especially regarding the changes in STT and debt mutual fund taxation.
Despite the opposition's demand for a JPC probe into the Adani group, the bill was passed, and the amendments made will have a significant impact on taxpayers.
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