Lok Sabha Passes Finance Bill 2023 with 64 Amendments; Marginal Relief Proposed Under New Tax Regime

The Lok Sabha has passed the Finance Bill 2023, which includes 64 amendments to the existing tax laws. One of the major changes proposed under the new tax regime is a marginal relief provision, which aims to provide relief to taxpayers in certain income brackets.

Under the new provision, taxpayers with a taxable income between Rs. 5 lacks and Rs. 10 lacks will be eligible for marginal relief, which means that they will pay slightly lower taxes compared to those in higher income brackets. The relief will be provided in the form of a reduction in the amount of tax payable, rather than a tax credit.

Other changes proposed under the Finance Bill 2023 include an increase in the limit for a tax deduction on health insurance premiums, as well as a reduction in the rate of corporate tax for small businesses. The bill also includes provisions to simplify tax filing procedures and increase penalties for non-compliance with tax laws.

Overall, the Finance Bill 2023 aims to provide relief to taxpayers, particularly those in the middle-income bracket, while also promoting compliance with tax laws and encouraging economic growth. The bill will now go to the Rajya Sabha for approval before it can be signed into law by the President.

It is important to note that the new provisions under the Finance Bill 2023 will come into effect only after they are signed into law. Taxpayers should consult with a qualified tax professional to ensure that they are aware of any changes that may affect their tax liabilities and take appropriate action to comply with the law.

Staff Reporter