GST SANSAR-Professionals

Life is like a book.

Some chapters are sad. Some are happy And Some are exciting.

But if you never turn the pages you will never know. what the next chapter has in store for you.

Beautiful Relations are not created by Terms and conditions but by two Wonderful people,

One - who can blindly trust

The Other - Who can understand.

The Finance (No. 2) Act, 2024 enacted today

Today on August-16-2024, after receiving the assent of the President of India, the Finance (No. 2) Act, 2024 has been enacted.

With Best Regards
CA. Rahul Singh
Rahul S Singh and Associates
Chartered Accountants
New Delhi

Relationship is like a garden.

It's beautiful when watered with love, care, trust, tears and cheers.

But it dries up if left untouched.

*Key Highlights of Direct Tax in Budget 2024*

1. *Overall of Capital Gains Taxes*

- Short Term Capital Gains to be taxed at 20% on all financial assets (w.e.f. 23.07.2024)
- Short Term Capital Gain on all other other assets it remains as it was (w.e.f. 23.07.2024)
- Long Term Capital Gains to be taxed at 12.5% on all assets (w.e.f. 23.07.2024)
- Exemption on LTCG u/s 112A to be increased to ₹1,25,000 (w.e.f. 23.07.2024)

2. *Standard Deduction* Increased from 50,000 to 75,000 under New Tax Regime

3. *Security Transaction Tax* on Future and Options & Securities to be increased 0.02 % and 0.01 % respectively

4. TDS u/s 194T for *Remuneration/intt/com/bonus paid to Partners of Partnership Firm* of more than ₹20,000 at rate of 10%

5. *Changes in Slab Rates under New Tax Regime*
₹ 0 - 3,00,000 - Nil
₹ 3,00,000 - 7,00,000 - 5%
₹ 7,00,000 - 10,00,000 - 10%
₹ 10,00,000 - 12,00,000 - 15%
₹ 12,00,000 - 15,00,000 - 20%
Above ₹ 15,00,000- 30%

ICAI Representation on Allowing 87A Rebate on STCG u/s 111A and LTCG u/s 112 :-

*Rebate under the Income Tax Act*

Rebate under section 87A of the Income Tax Act is a beneficial provision aimed at reducing the tax liability of Resident taxpayers. Historically, this section was available to individuals whose income did not exceed Rs. 5 Lakhs under the Old Tax Regime, leading to a nil tax liability upon claiming the rebate. Notably, the rebate limit was increased from Rs. 12,500 to Rs. 25,000 under Section 87A for those opting for the New Tax Regime, extending the eligibility to individuals with income not exceeding Rs. 7 Lakhs.

The Issue*

An issue arose when the ITR online utility was updated on 5th July, resulting in the cessation of the benefit of Section 87A rebate for STCG u/s 111A and other special rate income. Prior to this update, the ITR Utility and Calculator allowed for the 87A rebate against STCG u/s 111A and other special rate incomes, except for Long Term Capital Gain (LTCG) u/s 112A, where such rebate is explicitly prohibited by Section 112A.

Interpretation followed by the Income Tax Portal

The income tax portal stipulated that the rebate, equal to 100% of income tax or Rs. 25,000, whichever is lesser, applies when the total income of the assessee chargeable to tax under sub-section (1A) of section 115BAC does not exceed Rs. 700,000. Under the New Tax Regime, this rebate is exclusively available on income chargeable to tax u/s 115BAC, excluding special incomes chargeable to tax under other sections such as STCG u/s 111A.

Key Recommendations of 53rd GST Council Meeting

With Best Regards
CA. Rahul Singh
Rahul S Singh & Associates
Chartered Accountants
New Delhi

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