Income Tax recent amendments

The Finance Act, 2023 introduced several significant amendments to the Income Tax Act, 1961. Here are some of the key changes:

New Tax Regime:

• Increased Rebate: The rebate under Section 87A for the new tax regime has been increased from Rs. 5 lakh to Rs. 7 lakh.

• Reduced Surcharge: The highest surcharge rate under the new tax regime has been reduced from 37% to 25%.

• Default Tax Regime: The new tax regime under Section 115BAC has been made the default regime.

Other Amendments:

• Reduced Tax Rate for Non-Resident Dividends: The tax rate on dividends received by non-residents from IFSC units has been reduced from 20% to 10%.

• Increased Tax Rate for Royalty and Technical Services: The tax rate on royalty and fees for technical services has been increased from 10% to 20%.

• Reduced Tax Rate for Manufacturing Co-operative Societies: A new section 115BAE has been introduced to provide a reduced tax rate of 15% for manufacturing co-operative societies.

For more detailed information, you can refer to the following resources:

• Income Tax Department: https://incometaxindia.gov.in/

• Finance Act, 2023: https://incometaxindia.gov.in/Lists/Latest%20News/Attachments/578/Finance-Act-2023-Highlights.pdf

It is important to note that these are just some of the key amendments. There are many other changes that have been made, and it is advisable to consult with a tax professional to get specific advice on how these changes may affect you.