Income Tax Notifications & Circulars
Here we have provided complete notifications related to the Income Tax and TDS provisions as per the official government laws. We include all the latest updates in Income Tax and TDS, news, amendments, and circulars on the government portal for your reference.
Introduction of Income Tax
Income Tax is the tax levied by the government on the income earned by an individual in any given previous year. Income tax is charged as a price for utilizing the services provided by the government and maintaining the same. It is the main source of revenue for the central government. The main motive of collecting income tax is so that the amount raised by the government can be used for the development of buildings, roads and other infrastructure and development services. Income tax is collected by the central government and distributed to the state governments.
Income tax is managed by the Central Board of Direct Tax (CBDT) and is governed by the Income Tax Act, of 1961. There are six sources of income according to the Indian tax system. Income from salary, income from business or profession, income from capital gains, income from other sources, income from house property and income from lottery, horse race etc. Different rates of tax are applicable to different types of income. Some deductions are also provided by the government on income. The taxable income of an individual can be calculated after the deduction of such deductions.
Income tax is charged by the government according to the income earned by the individual. It is levied according to a slab system. In India, two slab systems are working under income tax, namely, the old system and the new system. The new IT slab system was introduced with the annual Budget for taxpayers. The government has provided an option of choosing between the slab systems to the assesses. An income tax return can be filed online by the individual assessee under forms ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, and ITR-7 according to the source of income of the assessee. The returns can also be filed by an assesses earning below the tax slabs. Non-compliance with the provisions of Income Tax can attract serious penalties or prison, or both.
Latest Update in Income Tax Act
Latest Update in Income Tax Act
The latest update in Income Tax and TDS via the government has come up with a lot of amendments under different norms looking at the current situation of the taxpayers/businesses in India. Here is the complete set of the latest Income tax & TDS updates amendments, crucial notifications, and announcements made by the government also the important information that every taxpayer must know:
Notification Number 46 Dated 26/06/2023
S.0. 2777(E). In exercise of the powers conferred by the third proviso to sub-section (2) of section 92C of the Income-tax Act, 1961 (43 of 1961) (hereafter referred to as the said Act) read with proviso to sub-rule (7) of rule 10CA of the Income-tax Rules, 1962, the Central Government hereby notifies that where the variation between the arm's length price determined under section 92C of the said Act and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exceed one per cent. of the latter in respect of wholesale trading and three per cent. of the latter in all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm's length price for assessment year 2023-2024.
Explanation.- For the purposes of this notification, "wholesale trading" means an international transaction or specified domestic transaction of trading in goods, which fulfils the following conditions, namely:-
(i) purchase cost of finished goods is eighty per cent. or more of the total cost pertaining to such trading activities; and
(in) average monthly closing inventory of such goods is ten per cent. or less of sales pertaining to such trading activities.
Notification Number 45 Dated 25/06/2023
In exercise of the powers conferred by clauses (1), (i), (iii) and (iv) of the first proviso to clause (23C) of section 10, ninth proviso to clause (23C of section 10, clause (b) of the tenth proviso to clause (23C) of section 10, sub-clauses (i) (ii), (iii), (iv), (v) and (vi) of clause (ac) of sub-section (1) of section 12A, sub-clause (ii) of clause (b) of sub-section (1) of section 12A, sub-section (3) of section 12AB, clauses (i), (i1), (iii) and (iv) of the first proviso to sub-section (5) of section 80G, third proviso to sub-section (5) of section 80G read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-