Finance Bill 2023 Passed: Key Takeaways The Lok Sabha on Friday approved The Bill with 64 official amendments

By Shrabona Ghosh

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Canva

The Finance Bill, which gives effect to tax proposals for the fiscal year starting April 1, was passed in the Lok Sabha on Friday, March 24. A total of 64 official amendments were proposed in the Bill. Speaking while moving the Bill, Union finance minister Nirmala Sitharaman, said the Centre received recommendations that the National Pension System for government employees needs to be improved. "I propose to set up a committee under the Finance Secretary to look into the issue of pensions & evolve an approach which addresses the needs of employees while maintaining fiscal prudence to protect common citizens," she said.

She also highlighted that payments for foreign tours through credit cards are not being captured under the Liberalised Remittance Scheme (LRS) and they escape tax collection at source. "I request RBI to look into this with a view to bring credit card payments for foreign tours within the ambit of LRS and tax collection at source thereon."

It also focuses on providing tax relief to some taxpayers opting for a new tax regime and removing long-term tax benefit for debt mutual funds to bring them at par with other interest earning instruments. "The new Finance Bill amendment affects debt funds, gold funds, international equity funds and FoFs. Starting 1st Apr 2023, the indexation benefit is gone, with all funds taxed at STCG regardless of holding tenure," tweeted Capitalmind, an investment research and wealth management firm.

Some of the other amendments include: Mutual funds having less than 35 per cent AUM in domestic equity to lose indexation benefit, to be taxed as short-term capital gains; enhanced tax benefits to offshore banking units operating in GIFT city, offshore banking units to get 100 per cent deduction on income for 10 years; tax on royalty or technical fee earned by foreign (non-resident) companies hiked from 10 per cent to 20 per cent; no change in tax on non-par savings insurance products ( INR 5 lakh cap remains); marginal relief proposed to the tax that one pays should not be more than the income that exceeds INR 7 lakh (INR 100 in this case).

On Thursday, the House had passed the Union Budget 2023 within 12 minutes without any discussion. Lok Sabha Speaker Om Birla ordered a guillotine to pass the Budget and the Finance Bill this week. A guillotine is a parliamentary procedure that is used to fast-track the passage of a bill without discussion. It is usually applied when the government is keen on passing a bill but the opposition is blocking the same.

Shrabona Ghosh

Correspondent

A journalist with a cosmopolitan mindset. I lead a project called 'Corporate Innovations' wherein I cover corporates across verticals and try to tell stories on innovations. Apart from this, I write industry pieces on FMCGs, auto, aviation, 5G and defense. 
Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Franchise

Turn Your Passion for Pets into a Business with a Wag N' Wash Franchise

Wag N' Wash is a store where pets can be cherished every day by feeding, washing, and spoiling them just how they like it.

Business News

The FTC Is Readying a Case Against the Largest U.S. Apartment Landlord. Here's Why.

The issue is with fees that allegedly weren't disclosed in advertisements for rental units.

Business News

'I Want the Best People on Our Teams': Meta Is Laying Off More Than 3,000, CEO Mark Zuckerberg Calls for 'Extensive Performance-Based Cuts' — Read the Memo

In an internal memo shared on Tuesday, Zuckerberg said it's "going to be an intense year" at the company.

Leadership

From Elite Athletes to Tech Titans — Discover the Surprising $100-Million Habit That Leads to Extraordinary Success

Success comes from mastering focus, eliminating distractions and prioritizing what truly matters.

Business Culture

What Every Business Leader Can Learn From Dutch Bros' People-First Culture

The coffee chain is turning employees into owners of the customer experience.