CBDT Circular 1/2024 Dt 23 January 2024 – Circular Providing Explanatory Notes on the Provisions of Finance Act 2023
In a significant update on 23rd January 2024, the Central Board of Direct Taxes (CBDT) released Circular No. 1/2024, providing detailed explanatory notes on the provisions of the Finance Act 2023. This Finance Act, effective from 1st April 2023, plays a pivotal role in shaping the tax landscape of India, introducing amendments to tax rates, deductions, and compliance processes for both Direct and Indirect taxes.
Categories Covered in Circular No. 1/2024
The explanatory notes issued by CBDT under this circular has been brought under 4 different categories given below.
Amendments in the Income Tax Act 1961
CBDT’s circular extensively covers amendments made to the Income Tax Act 1961. Taxpayers are urged to delve into the circular to gain insights into the changes affecting their tax liabilities and obligations in the financial year 2023-24.
Revision of Securities Transaction Tax Rates
The circular sheds light on the revisions in the rates of Securities Transaction Tax, as introduced by amendments in the Finance (No. 2) Act, 2004. Understanding these changes is crucial for investors navigating the intricacies of securities transactions.
Rationalization of Benami Property Transactions
The circular addresses the rationalization of provisions in the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) which was brought through an amendment in the Finance Act 2023. Taxpayers and property owners should carefully review these amendments to ensure compliance and avoid legal implications.
Extension of Income-tax Exemption to SUUTI
CBDT’s circular also outlines the extension of Income-tax exemption to the Specified Undertaking of Unit Trust of India (SUUTI) until 31st March 2025. This provision aims to provide relief and clarity to eligible entities, which came as an amendment in the Finance Act 2023.
Why Taxpayers Should Take Note
As the circular encompasses amendments effective from 1st April 2024, it is crucial for taxpayers to familiarize themselves with the details. This knowledge will empower them to make informed decisions in their tax planning for the financial year 2023-24.
Conclusion
In conclusion, CBDT Circular 1/2024 serves as a comprehensive guide to the amendments brought about by the Finance Act 2023. Taxpayers are strongly advised to refer to the circular through the provided link to align their tax planning strategies with the latest regulatory changes. Staying informed ensures a smooth and compliant financial journey for the fiscal year 2023-24.
Readers can Download the Circular HERE
To Know the Way to file Income Tax Return after missing the 31 December Deadline CLICK HERE
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