On 1st February 2023, the Hon’ble Finance Minister, Nirmala Sitharaman, presented Union Budget 2023 in the Lok Sabha. Hon’ble Finance Minister’s impetus on the Green Growth and Infrastructure Capex in this fiscal year’s Budget is laudable. She also remarked that in order to strengthen the “ease of doing business” in India, more than 39,000 compliances are reduced. She introduced certain rationalisation measures which were long overdue under the Direct Tax Law but ironically also increased few compliances under the TDS / TCS provisions. We have attached our insights / analysis on the key direct tax amendments proposed in the Finance Bill, 2023. Click here to view the budget analysis
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Our Hon'ble FM gave an overview of few proposals. However, as we read the fine print of the Finance Bill, 2022 and the Explanatory Memorandum to the Finance Bill, there are several amendments which were not covered / discussed at length in the Budget Speech. We have attached Insights and analysis on the key direct tax amendments proposed in the Finance Bill, 2022.
Union Budget 2022 – Analysis of Key Direct Tax Amendments
The Hon’ble Finance Minister presented the Budget 2020 on 1st February 2020 proposing measures for providing stimulus to the economy, means for meeting fiscal deficits, and addressing the NBFC liquidity issues, among other concerns. On the direct tax front, she tried to rationalise personal income tax rates on the lines of the corporate income tax changes announced in September 2019 and announced a slew of measures contemplating that it would simplify the current direct tax law. However, as they say “the devil lies in the details”. We have attached below our insights on the key proposals announced in relation to the direct tax amendments. Analysis of Key Direct Tax Proposals (PSA)
Union Budget 2020 – Key Direct Tax Insights
The Union Budget for the fiscal year 2017-18 was presented by the Hon’ble Finance Minister on 1st February 2017. As in the past 2 budgets, the focus of our FM has been towards rationalisation of the provisions of the Income-tax Act, 1961 and to expand the tax base and curb on the tax evasion. While providing marginal relief by way of tax rate cuts to individuals and SMEs, the proposals laid down in this Budget primarily pivot around curtailing litigation on several issues by providing clarificatory & few retrospective amendments and providing impetus to several sectors of the economy. Direct tax proposals in the Finance Bill, 2017 are effective from the financial year commencing on 1 April 2017, unless otherwise specified. Click here to read the analysis of key direct tax proposals
Budget 2017 – An Insight on Key Direct Tax proposals
The Union Budget for the fiscal year 2015-16 was presented by the Finance Minister on 28th February 2015. Apart from abolishing Wealth Tax Act, 1957 and officially warding off Direct Tax Code (‘DTC’), he also deferred the least liked GAAR (General Anti-Avoidance Rules) for two more years. He proposed to implement a roadmap for the reduction of corporate tax rate to 25% over a period of four years and also promised to phase out exemptions to give a fillip to the stagnant tax-base in India. Most of the direct tax proposals in the Finance Bill, 2015 are effective from the financial year commencing on 1 April 2015, unless otherwise specified. Click here to download an analysis of the key Direct Tax Proposals in the Budget
BUDGET 2015 – An Insight into Key Direct Tax Proposals
The Union Budget for the year 2014-15 was tabled by the Finance Minister Mr Arun Jaitley on 10 July 2014. Certain significant tax proposals contained in the Finance (No.2) Bill, 2014 were made by the Finance Minister during the Budget 2014-15 speech. In relation to the retrospective amendments made in earlier Budgets, the Finance Minister recognized the harsh implications in the international business community. The Finance Minister proposed that all fresh cases of indirect transfer taxation arising will be scrutinized by a high level committee. Unfortunately, contrary to expectations, the budget does not contain any proposal to provide relief to taxpayers who are already in litigation on this matter. Most of the direct tax proposals in the Finance Bill, 2014 are effective from the financial year commencing on 1 April 2014, unless otherwise specified. Click here to download an analysis of the key Direct Tax Proposals in the Budget
BUDGET 2014 – Analysis of the key Direct Tax Proposals
The Union Budget for 2013-14 was presented by the Finance Minister in the Parliament on 28th February 2013. The Finance Minister stated in his speech that the underlying theme of this year’s tax proposals is “clarity in tax laws, a stable tax regime, a non-adversarial tax administration, a fair mechanism for dispute resolution, and an independent judiciary.” Most of the direct tax proposals in the Finance Bill, 2013 are effective from the financial year commencing on 1 April 2013, unless otherwise specified. Please click here to refer to the key Direct tax proposals made in the Budget 2013-14
Budget 2013: An Analysis of Key Direct Tax Proposals
Section 145 of the Income-tax Act, 1961 provides that the income of a person under the heads ”profit and gains of business or profession” or “income from other sources’ shall be computed in accordance with either cash or mercantile system of accounting that is regularly employed by the person. It further provides that the Central Government may notify in the Official Gazette, from time to time, accounting standards to be followed by any class of taxpayers or in respect of any class of income. Since the introduction of this provision in the Act, the Central Govt has notified two standards in 1996: (a) Accounting Standard I, relating to disclosure of accounting policies; and (b) Accounting Standard II, relating to disclosure of prior period and extraordinary items and changes in accounting policies. Subsequently, CBDT constituted the Committee to harmonize the Accounting Standards issued by ICAI with the provisions of the Act and also to suggest amendments to the Act necessitated by transition to IFRS.
Tax Accounting Standards: Key Differences
Based on the recommendations of Supreme Court in the case of CIT Vs. Glaxo SmithKline Asia (P) Ltd. (195 Taxman 35) (SC), Finance Minister introduced transfer pricing regulations applicable to specified domestic transactions in Finance Act, 2012. Please find attached in the link below an overview of the Domestic Transfer Pricing regulations applicable with effect from Assessment Year 2013-2014 Click here to download the overview