For support, write to us on: admin@taxsutra.com
Ministry of Finance
ECONOMIC SURVEY 2022-23: HIGHLIGHTS
Indian economy staging a broad based recovery across sectors, positioning to ascend to pre-pandemic growth path in FY23
Retail inflation is back within RBI's target range in November 2022
Direct Tax collections for the period April-November 2022 remains buoyant
Enhanced Employment generation seen in the declining urban unemployment rate and in the faster net registration in Employee Provident Fund
Creating public goods to enhance opportunities, efficiencies and ease of living, trust-based governance, enhancing agricultural productivity and promoting the private sector as a co-partner in development is the focus of the government reforms
Cleaner balance sheets led to enhanced lending by financial institutions
Growth in credit offtake, increased private capex to usher virtuous investment cycle
Non-food credit offtake by Scheduled Commercial Banks growing in double digits since April 2022
Gross Non-Performing Assets (GNPA) ratio of SCBs has fallen to a seven-year low of 5.0
Social sector expenditure (Centre and States combined) increases to Rs. 21.3 lakh crore in FY23 (BE) from Rs. 9.1 lakh crore in FY16
Central and State Government’s budgeted expenditure on health sector touched 2.1% of GDP in FY23 (BE) and 2.2% in FY22 (RE) against 1.6% in FY21
More than 220 crore COVID vaccine doses administered
Survey highlights the findings of the 2022 report of the UNDP on Multidimensional Poverty Index which says that 41.5 crore people exit poverty in India between 2005-06 and 2019-20
India declared Net Zero Pledge, to achieve net zero emissions goal by 2070
A mass movement LIFE– Life style for Environment launched
National Green Hydrogen Mission to enable India to be energy independent by 2047
Private investment in agriculture increases to 9.3% in 2020-21
Free foodgrains to about 81.4 crore beneficiaries under the National Food Security Act for one year
About 11.3 crore farmers were covered under PM KISAN in its April-July 2022-23 payment cycle
India stands at the forefront to promote millets through the International Year of Millets initiative
Investment of ₹47,500 crores under the PLI schemes in FY22- 106% of the designated target for the year
India’s e-commerce market is projected to grow at 18 per cent annually through 2025
Merchandise exports of US$ 332.8 billion for April-December 2022
India is the largest recipient of remittances globally receiving US$ 100 billion in 2022
PM GatiShakti National Master Plan creates comprehensive database for integrated planning and synchronised implementation across Ministries/ Departments
UPI-based transactions grew in value (121 per cent) and volume (115 per cent) terms, between 2019-2022, paving the way for its international adoption
Dated: 31 JAN 2023
Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, presented the Economic Survey 2022-23 in the Union Parliament today. The highlights of the Survey are as follows:
State of the Economy 2022-23: Recovery Complete
India’s Medium Term Growth Outlook: with Optimism and Hope
Fiscal Developments: Revenue Relish
Monetary Management and Financial Intermediation: A Good Year
Prices and Inflation: Successful Tight-Rope Walking
Social Infrastructure and Employment: Big Tent
Climate Change and Environment: Preparing to Face the Future
Agriculture and Food Management
Industry: Steady Recovery
Services: Source of Strength
External Sector
Physical and Digital Infrastructure
Government’s Vision for Infrastructure Development
Electricity Sector and Renewables
Making Indian Logistics Globally Competitive
India’s Digital Public Infrastructure
***
RM/AD/VD/DJM/LP/RC/SSV
(Release ID: 1894929)
DIRECT TAXES
Direct Tax proposals aim to maintain continuity and stability of taxation, further simplify and rationalise various provisions to reduce the compliance burden, promote the entrepreneurial spirit and provide tax relief to citizens.
Constant endeavour of the Income Tax Department to improve Tax Payers Services by making compliance easy and smooth.
To further improve tax payer services, proposal to roll out a next-generation Common IT Return Form for tax payer convenience, along with plans to strengthen the grievance redressal mechanism.
Rebate limit of Personal Income Tax to be increased to Rs. 7 lakh from the current Rs. 5 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to Rs. 7 lakh to not pay any tax.
Tax structure in new personal income tax regime, introduced in 2020 with six income slabs, to change by reducing the number of slabs to five and increasing the tax exemption limit to Rs. 3 lakh. Change to provide major relief to all tax payers in the new regime.
New tax rates
Total Income (Rs) |
Rate (per cent) |
Up to 3,00,000 |
Nil |
From 3,00,001 to 6,00,000 |
5 |
From 6,00,001 to 9,00,000 |
10 |
From 9,00,001 to 12,00,000 |
15 |
From 12,00,001 to 15,00,000 |
20 |
Above 15,00,000 |
30 |
Proposal to extend the benefit of standard deduction of Rs. 50,000 to salaried individual, and deduction from family pension up to Rs. 15,000, in the new tax regime.
Highest surcharge rate to reduce from 37 per cent to 25 per cent in the new tax regime. This to further result in reduction of the maximum personal income tax rate to 39 per cent.
The limit for tax exemption on leave encashment on retirement of non-government salaried employees to increase to Rs. 25 lakh.
The new income tax regime to be made the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime.
Enhanced limits for micro enterprises and certain professionals for availing the benefit of presumptive taxation proposed. Increased limit to apply only in case the amount or aggregate of the amounts received during the year, in cash, does not exceed five per cent of the total gross receipts/turnover.
Deduction for expenditure incurred on payments made to MSMEs to be allowed only when payment is actually made in order to support MSMEs in timely receipt of payments.
New co-operatives that commence manufacturing activities till 31.3.2024 to get the benefit of a lower tax rate of 15 per cent, as presently available to new manufacturing companies.
Opportunity provided to sugar co-operatives to claim payments made to sugarcane farmers for the period prior to assessment year 2016-17 as expenditure. This expected to provide them a relief of almost Rs. 10,000 crore.
Provision of a higher limit of Rs. 2 lakh per member for cash deposits to and loans in cash by Primary Agricultural Co-operative Societies (PACS) and Primary Co-operative Agriculture and Rural Development Banks (PCARDBs).
A higher limit of Rs. 3 crore for TDS on cash withdrawal to be provided to co-operative societies.
Date of incorporation for income tax benefits to start-ups to be extended from 31.03.23 to 31.3.24.
Proposal to provide the benefit of carry forward of losses on change of shareholding of start-ups from seven years of incorporation to ten years.
Deduction from capital gains on investment in residential house under sections 54 and 54F to be capped at Rs. 10 crore for better targeting of tax concessions and exemptions.
Proposal to limit income tax exemption from proceeds of insurance policies with very high value. Where aggregate of premium for life insurance policies (other than ULIP) issued on or after 1st April, 2023 is above Rs. 5 lakh, income from only those policies with aggregate premium up to Rs. 5 lakh shall be exempt.
Income of authorities, boards and commissions set up by statutes of the Union or State for the purpose of housing, development of cities, towns and villages, and regulating, or regulating and developing an activity or matter, proposed to be exempted from income tax.
Minimum threshold of Rs. 10,000/- for TDS to be removed and taxability relating to online gaming to be clarified. Proposal to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of the financial year.
Conversion of gold into electronic gold receipt and vice versa not to be treated as capital gain.
TDS rate to be reduced from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases.
Income from Market Linked Debentures to be taxed.
Deployment of about 100 Joint Commissioners for disposal of small appeals in order to reduce the pendency of appeals at Commissioner level.
Increased selectivity in taking up appeal cases for scrutiny of returns already received this year.
Period of tax benefits to funds relocating to IFSC, GIFT City extended till 31.03.2025.
Certain acts of omission of liquidators under section 276A of the Income Tax Act to be decriminalized with effect from 1st April, 2023.
Carry forward of losses on strategic disinvestment including that of IDBI Bank to be allowed.
Agniveer Fund to be provided EEE status. The payment received from the Agniveer Corpus Fund by the Agniveers enrolled in Agnipath Scheme, 2022 proposed to be exempt from taxes. Deduction in the computation of total income is proposed to be allowed to the Agniveer on the contribution made by him or the Central Government to his Seva Nidhi account.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
******
New Delhi, 11th January, 2023
PRESS RELEASE
Direct Tax Collections for F.Y. 2022-23 up to 10.01.2023
The provisional figures of Direct Tax collections up to 10th January, 2023 continue to register steady growth. Direct Tax collections up to 10th January, 2023 show that gross collections are at Rs. 14.71 lakh crore which is 24.58% higher than the gross collections for the corresponding period of last year. Direct Tax collection, net of refunds, stands at Rs. 12.31 lakh crore which is 19.55 % higher than the net collections for the corresponding period of last year. This collection is 86.68% of the total Budget Estimates of Direct Taxes for F.Y. 2022-23.
So far as the growth rate for Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections is concerned, the growth rate for CIT is 19.72% while that for PIT (including STT) is 30.46%. After adjustment of refunds, the net growth in CIT collections is 18.33% and that in PIT collections is 21.64% (PIT only)/ 20.97% (PIT including STT).
Refunds amounting to Rs.2.40 lakh crore have been issued during 1st April, 2022 to 10th January 2023, which are 58.74% higher than refunds issued during the same period in the preceding year.
(Surabhi Ahluwalia)
Pr. Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
PRESS RELEASE
Gross Direct Tax collections for the Financial Year (FY) 2022-23 register a growth of 25.90%
Net Direct Tax collections for the FY 2022-23have grown at over 19.81%
Advance Tax collections for the FY 2022-23 stand at Rs. 5,21,302 crore as on 17.12.2022 which shows a growth of 12.83%
Refunds aggregating to Rs. 2,27,896 crore have been issued in the current fiscal
The figures of Direct Tax collections for the Financial Year 2022-23, as on 17.12.2022 show that net collections are at Rs. 11,35,754 crore, compared to Rs. 9,47,959 crore in the corresponding period of the preceding Financial Year i.e FY 2021-22, representing an increase of 19.81%.
The Net Direct Tax collection of Rs. 11,35,754 crore (as on 17.12.2022) includes Corporation Tax (CIT) at Rs. 6,06,679 crore (net of refund) and Personal Income Tax (PIT) including Securities Transaction Tax(STT) at Rs. 5,26,477 crore (net of refund).
The Gross collection of Direct Taxes (before adjusting for refunds) for the FY 2022-23 stands at Rs. 13,63,649 crore compared to Rs. 10,83,150 crore in the corresponding period of the preceding financial year, registering a growth of 25.90% over collections of F.Y. 2021-22.
The Gross collection of Rs. 13,63,649 crore includes Corporation Tax (CIT) at Rs. 7,25,036 crore and Personal Income Tax (PIT) including Securities Transaction Tax(STT) at Rs. 6,35,920 crore. Minor head wise collection comprises Advance Tax of Rs. 5,21,302 crore; Tax Deducted at Source of Rs. 6,44,761 crore; Self-Assessment Tax of Rs. 1,40,105 crore; Regular Assessment Tax of Rs. 46,244 crore; and Tax under other minor heads of Rs. 11,237 crore.
The cumulative Advance Tax collections for the first, second and third quarter of the F.Y. 2022-23 stand at Rs. 5,21,302 crore as on 17.12.2022, against Advance Tax collections of Rs. 4,62,038 crore for the corresponding period of the immediately preceding Financial Year i.e. 2021-22, showing a growth of 12.83%. The Advance Tax collection of Rs. 5,21,302 crore as on 17.12.2022 includes Corporation Tax (CIT) at Rs. 3,97,364 crore and Personal Income Tax (PIT) at Rs. 1,23,936 crore.
There has been a remarkable increase in the speed of processing of income tax returns filed during the current fiscal, with almost 96.5% of the duly verified ITRs having been processed till 17.12.2022. This has resulted in faster issue of refunds with almost a 109% increase in the number of refunds issued in the current financial year. Refunds amounting to Rs. 2,27,896 crore have been issued in the FY 2022-23 till 17.12.2022, as against refunds of Rs.1,35,191 crore issued during the corresponding period in the preceding Financial Year 2021-22, showing a growth of over 68.57%.
(Surabhi Ahluwalia)
Pr. Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 17th November, 2022
PRESS RELEASE
Income Tax Department conducts search actions in Karnataka
Income Tax Department initiated Search & Seizure actions on 20.10.2022 and 02.11.2022 on certain individuals who had executed Joint Development Agreements (JDAs) with various real-estate developers. The search action covered more than 50 premises spread across Bengaluru, Mumbai and Goa.
During the course of the search operations, a large number of incriminating evidences, in the form of documents and digital data have been found & seized. Evidences regarding the sale agreements, development agreements and occupancy certificates (OCs) have also been seized. These evidences revealed that the land owners had not disclosed income accrued to them from capital gains on transfer of the land given for development through JDAs to various developers, even after issue of the OCs from the authorities.
It was also unearthed that in many instances, the land owners suppressed income from capital gains for various years by artificially inflating the cost of acquisition & various other costs, and by not disclosing full value of consideration on transfer land. It was also found that some of the land owners didn’t even file their ITRs for various years, where capital gains income had accrued to them. When confronted , the assessees concerned admitted their lapses and agreed to disclose income from capital gains detected in their respective cases, and pay due taxes thereon.
So far, the search actions have led to detection of unaccounted income of more than Rs. 1300 crore. Further, undisclosed assets in the nature of cash and gold jewellery worth more than Rs. 24 crore have also been seized.
Further investigations are in progress.
(Surabhi Ahluwalia)
Pr. Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT