Finance Act 2023 : Amendments of the Income Tax Act 1961 – 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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