The Central Board of Direct Taxes, vide circular no. 01/2024 dated 23rd January 2024 has released a circular explaining the amendment of the Income Tax Act, 1961 which was made through the Finance Act 2023. The Finance Act, 2023 as passed by the Parliament, received the assent of the President on 31st March, 2023 and has been enacted as Act No. 8 of 2023. The circular introduces itself as “This circular explains the substance of the provisions of the FA 2023 relating to direct taxes.”
In addition to elucidating provisions within the Income Tax Act, the board has extended clarifications regarding amendments in other legislations that exert an influence on direct taxes. These legislations encompass The Finance ( NO. 2 ) Act, 2004, The Prohibition of Benami Property Transactions Act, 1988, and the Unit Trust of India ( Transfer of Undertaking and Repeal ) Act, 2002. According to the circular, the following are the changes made by the FA 2023 in income tax act specified the existing rates of income-tax for the assessment year 2023-24 and the rates of income-tax on the basis of which tax has to be deducted at source and advance tax has to be paid during financial year 2023-24 amended certain sections of the Income-tax Act Within the circular, the Finance Ministry highlights key provisions, providing in-depth clarifications to ensure a nuanced understanding of the changes in different acts through the finance act. The same will help the stakeholders including Chartered Accountants, income tax officials, taxpayers..etc to understand the amendments in detail.