​Increased limit for tax exemption on leave encashment for non-government salaried employees notified [Notification No.31/2023 dated 24.05.2023]

In pursuance to the proposal in the Budget Speech, 2023, by the hon’ble FM, the Central Government has notified the increased limit for tax exemption on leave encashment on retirement or otherwise of non-government salaried employees to Rs. 25 lakh w.e.f. 01.04.2023.

Circular No. 6 of 2023 dated 24-05-2023: Clarification regarding provisions relating to charitable and religious trusts – reg.

  • Clarification regarding application of section 115TD for failure to apply to registration/approval.
  • Extension of due date for furnishing of Form No. 10BD.
  • Clarification regarding applicability of provisional registration.
  • Clarification regarding denial of exemption in cases where the statement of accumulation is not filed by the due date.
  • Clarification regarding audit report to be furnished in Form No. 10B.

Circular No. 5 of 2023 dated 22-05-2023: Guidelines for removal of difficulties under sub-section (3) of section 194BA of the Income-tax Act, 1961.

Finance Act 2023 inserted a new section 194BA in the Income-tax Act, 1961 (hereinafter referred to as “the Act”) with effect from 1st April 2023. The new section mandates a person, who is responsible for paying to any person any income by way of winnings from any online game during the financial year to deduct income-tax on the net winnings in the person’s user account. Tax is required to be deducted at the time of withdrawal as well as at the end of the financial year. Net winning is required to be computed in the manner as may be prescribed. The manner of computation of net winning has now been prescribed in Rule 133 of the Income-tax Rules 1962, vide notification no. 28/2023 dated 22nd May 2023.

CBDT F.No.225/66/2023/ITA-II  Dated 24-05-2023: Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2023-24-procedure for compulsory selection in such cases- regarding.

PIB Press Release dated 19-05-2023 – Ministry of Finance Clarification: Any payments by an individual using their international Debit or Credit cards upto Rs 7 lakh per financial year will be excluded from the LRS limits and hence, will not attract any TCS

Concerns have been raised about the applicability of Tax Collection at Source (TCS) to small transactions under the Liberalized Remittance Scheme (LRS) from July 1, 2023. To avoid any procedural ambiguity, it has been decided that any payments by an individual using their international Debit or Credit cards upto Rs 7 lakh per financial year will be excluded from the LRS limits and hence, will not attract any TCS. Existing beneficial TCS treatment for education and health payments will also continue. The necessary changes to the Rules (Foreign Exchange Management (Current Account Transactions Rules), 2000) will be issued separately.

Kanta Govind Singh Vs ACIT CPC TDS (ITAT Ahmedabad) Appeal Number : ITA No.127/Ahd/2022 Date of Order: 17-05-2023

Hon’ble ITAT allowed the appeal of assessee by holding that the assessee being senior citizen has deposited TDS amount immediately after sale consideration was received and there was no lapse on the part of the assessee while depositing the TDS amount to the Treasury of Government of India. Due to the circumstances, the assessee could not file form 27Q within the time frame, but the assessee’s intention is clear as the assessee filed the same in January 2021. Thus, merely on the ground that the assessee has not filed Form 27Q on 31.07.2019 and thus late filing cannot be the criteria for levying fees under Section 234E of the Act. Under the current circumstances, in the present case, it will be appropriate to delete the said levy of fee.