Finance Bill 2023 passed in Lok Sabha
Finance Minister Nirmala Sitharaman presented the Finance Bill. In this, along with 64 official amendments, many benefits have been included for common taxpayers. This includes setting up of a GST Appellate Tribunal with giving some relief to taxpayers adopting the new tax regime and withdrawal of long-term tax benefits from certain categories of mutual funds investing in bonds.
The major amendments in FY 2023:
- Several amendments have been incorporated in FY2023, such as taxing as short-term capital gains for mutual funds with less than 35% AUM in domestic equity and offshore banking entities operating in GIFT City to facilitate them is.
- Income earned on royalty or technical fees by the foreign authority has been increased from 10% to 20%.
- Other amendments include setting up a committee to meet the requirements of the pension system and proposing a margin relief by reducing the tax payment threshold for income above Rs 7 lakh.
- The Finance Scheme 2023 also proposes that all liberalized remittances made through credit cards for foreign visits should be (LRS) pay LRS and not work for tax collection (TCS).
- Unlimited transaction tax as security on sale of options up to Rs. 1 crore on turnover of Rs. 1,700 to Rs. 2,100 has been done.
What is Financial Statement?
Financial statements are formal records of the financial activities and position of a business, individual or other entity.
Relevant financial information is presented in a structured manner and in a form that is easy to understand. They typically include four basic financial statements, along with a management discussion and analysis:
- A balance sheet, or statement of financial position, reports on a company's assets, liabilities, and owners' equity at a given point in time.
- An income statement—or profit and loss report (P&L report), or statement of comprehensive income, or statement of revenue and expenses—reports on a company's income, expenses, and gains over a given period. A profit and loss statement provides information about the operations of the enterprise. These include sales and various expenses incurred during the specified period.
- The statement of changes in equity, or statement of equity, or statement of retained earnings, reports on the change in a company's equity over a given period.
- A cash flow statement reports on a company's cash flow activities, specifically its operating, investing and financing activities, during a given period.