Service Tax
Finance bill proposes hike in securities transaction tax on options & futures trading
This will lead to those trading in futures and options (F&O) paying higher STT. In a way, the move is likely to discourage F&O traders, as government aims to tax them more since turnover is high in such transactions.
New capital gains tax rules to come into effect from April 1
From April 1, converting physical gold to electronic gold receipts won't be considered as a transfer and therefore will not attract any capital gains tax. Similarly converting electronic gold receipt to physical gold also will not attract any capital gains tax. Electronic gold receipts are depository gold receipts that can be traded on the stock exchanges.
Only twice in 30 yrs, the market's been up both pre and post Budget
Volatility has risen since 2019 and hit an 11-year high in 2022. Expectations as measured by pre-budget equity market performance are important in determining what the market does immediately after the budget. The market falls on two of three occasions in the 30 days post the budget. The probability of such a fall rises to 80 per cent if the market has risen in the 30 days preceding the budget.
Despite slew of polls ahead, prospects of populist budget appear bleak
On the revenue side, lower tax buoyancy could be partly countered by higher RBI dividend and still-healthy assumption of divestment proceeds. "We watch for possible changes to capital gains tax structure and new personal tax regime, extension of concessional 15% tax rate for new manufacturing units, and higher import tariffs on PLI-related products," the report said.
Direct tax collections rise 24% year-on-year to Rs 14.71 lakh crore
This collection is 86.68 per cent of the total budget estimates of direct taxes for 2022-23. Refunds amounting to Rs 2.40 lakh crore have been issued between April 1, 2022 and January 10, 2023, which are 58.74 per cent higher than refunds issued during the corresponding period of last year.
Robust collections to enable government roll out tax reforms, raise exemption limit
With such a surge in tax collections, government would look to unleash reforms in the coming 2023-24 fiscal, especially as far as tax administration is concerned. Already there are indications that the government may enhance tax exemption limit to Rs 5 lakh per annum from the current Rs 2.5 lakh per annum.
Gross direct tax collections up by 30% at Rs 10,93,385 cr in current fiscal
The growth has been achieved due to the performance of economy, administration and implementation of the provisions of the direct tax laws, finance ministry sources said. The Central government has set a target of Rs 14,20,000 crore for collection of direct taxes as per budget estimates for 2022-23.
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