Finance Act 2023 : Amendments of the Income Tax Act 1961 – CBDT Circular No. 1/2024

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Finance Act 2023 : Amendments of the Income Tax Act 1961 – CBDT Circular No. 1/2024

Finance Act 2023 : Amendments of the Income Tax Act 1961 – CBDT Circular No. 1/2024

finance-act-2023-cbdt-circular-no-1-2024

CIRCULAR NO. 1/2024

F. No. 370142/38/2023
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)
****

Dated the 23rd of January, 2024

EXPLANATORY CIRCULAR

CIRCULAR EXPLAINING THE PROVISIONS OF THE FINANCE ACT, 2023

CIRCULAR
INCOME-TAX ACT

Finance Act, 2023 ─ Explanatory Notes to the Provisions of the Finance Act, 2023

CIRCULAR NO. 1/2024, DATED the 23rd of January, 2024

AMENDMENTS OF THE INCOME-TAX ACT, 1961 CARRIED OUT THROUGH FINANCE ACT, 2023

Section of Income-tax Act, 1961 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 in 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 business 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.
54EC Capital gain not to be charged on investment in certain bonds.
54ED Capital gain on transfer of certain listed securities or unit not to be charged in certain cases.
54F Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house
55 Meaning of ‘adjusted’, ‘cost of improvement’ and ‘cost of acquisition’
56 Income from other sources
72A Provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in amalgamation or demerger, etc.
72AA Carry forward and set off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation in certain cases.
79 Carry forward and set off of losses in case of certain companies
80C Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures etc.
80CCC Deduction in respect of contribution to certain pension funds
80CCD Deduction in respect of contribution to pension scheme of Central Government
80CCH Deduction in respect of contribution to Agnipath Scheme
80G Deduction in respect of donations to certain funds, charitable institutions, etc.
80-IAC Special provision in respect of specified business
80LA Deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre
87 Rebate to be allowed in computing income-tax
87A Rebate of income-tax in case of certain individuals
88 Rebate on life insurance premia, contribution to provident fund, etc. (omitted)
92BA Meaning of specified domestic transaction
92D Maintenance, keeping and furnishing of information and document by certain persons
94B Limitation on interest deduction in certain cases
111A Tax on short-term capital gains in certain cases
112 Tax on long-term capital gains
115A Tax on dividends, royalty and technical service fees in the case of foreign companies
115BAC Tax on income of individuals and Hindu Undivided Family
115BAD Tax on income of certain resident co-operative societies
115BAE Tax on income of certain new manufacturing cooperative societies
115BB Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever.
115BBJ Tax on winnings from online games.
115JC Special provisions for payment of tax by certain persons other than a company
115JD Tax credit for alternate minimum tax
115TD Tax on accreted income
115UA Tax on income of unit holder and business trust.
115VP Method and time of opting for tonnage tax scheme
116 Income-tax authorities.
119 Instructions to subordinate authorities
131 Power regarding discovery, production of evidence, etc.
132 Search and seizure
133 Power to call for information.
134 Power to inspect registers of companies.
135A Faceless collection of information.
140B Tax on updated return
142 Inquiry before assessment
148 Issue of notice where income has escaped assessmenT
149 Time limit for notice
151 Sanction for issue of notice.
153 Time limit for completion of assessment, reassessment and recomputation
154 Rectification of mistake.
158A Procedure when assessee claims identical question of law is pending before High Court or Supreme Court.
158AB Procedure where an identical question of law is pending before High Courts or Supreme Court.
170A Effect of order of tribunal or court in respect of business reorganisation
177 Association dissolved or business discontinued.
189 Firm dissolved or business discontinued.
192A Payment of accumulated balance due to an employee
193 Interest on securities
194B Winnings from lottery or crossword puzzle,etc.
194BA Winnings from online games
194BB Winnings from horse race.
194LC Income by way of interest from Indian company
194N Payment of certain amounts in cash.
194R Deduction of tax on benefit or perquisite in respect of business or profession
196A Income in respect of units of non-residents.
197 Certificate for deduction at lower rate
206AB Special provision for deduction of tax at source for non-filers of income-tax return
206C Profits and gains from the business of trading
in alcoholic liquor, forest produce, scrap, etc.
206CC Requirement to furnish Permanent Account number by collectee
206CCA Special provision for collection of tax at source for non-filers of income-tax return
241A Withholding of refund in certain cases.
244A Interest on refunds.
245 Set off and withholding of refunds in certain cases
245D Procedure on receipt of an application under section 245C
245MA Dispute Resolution Committee
245R Procedure on receipt of application
246 Appealable orders before Joint Commissioner (Appeals)
249 Form of appeal and limitation.
250 Procedure in appeal
251 Powers of the Joint Commissioner (Appeals) or the Commissioner (Appeals).
253 Appeals to the Appellate Tribunal
264 Revision of other orders
267 Amendment of assessment on appeal.
269SS Mode of taking or accepting certain loans, deposits and specified sum.
269T Mode of repayment of certain loans or deposits.
271 Failure to furnish returns, comply with notices, concealment of income, etc.
271A Failure to keep, maintain or retain books of account, documents, etc.
271AAC Penalty in respect of certain income.
271AAD Penalty for false entry, etc., in books of account.
271C Penalty for failure to deduct tax at source
271FAA Penalty for furnishing inaccurate statement of financial transaction or reportable account.
271J Penalty for furnishing incorrect information in reports or certificates.
274 Procedure.
275 Failure to comply with the provisions of sub-sections (1) and (3) of section 178.
276B Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B.
279 Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner
287 Publication of information respecting assesses in certain cases
295 Power to make rules.

 

AMENDMENTS TO THE FINANCE (NO. 2) ACT, 2004 CARRIED OUT THROUGH FINANCE ACT, 2023

Revision of rates of Securities Transaction Tax by amendments in Finance (No. 2) Act, 2004-

Chapter of Finance (No. 2) Act, 2004 Particulars
Chapter VII Securities Transaction Tax

AMENDMENTS TO THE PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988 CARRIED OUT THROUGH FINANCE ACT, 2023

Rationalization of the provisions of the Prohibition of Benami Property Transactions Act, 1988 (the PBPT Act) –

Section of PBPT Act Particulars
2 Definitions
46 Appeals to Appellate Tribunal

AMENDMENTS TO THE UNIT TRUST OF INDIA (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 2002 CARRIED OUT THROUGH FINANCE ACT, 2023

Extension of Income- tax exemption to Specified Undertaking of Unit Trust of India (SUUTI) till 31.03.2025 –

Section of Unit Trust of India (Transfer of Undertaking and repeal) Act, 2002 Particulars
8 Administrator to vacate office
13 Tax exemption or benefit to continue to have effect.

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