EXPLANATORY CIRCULAR CIRCULAR EXPLAINING THE PROVISIONS OF THE FINANCE ACT, 2023

 CIRCULAR NO. 1/2024

F. No. 370142/38/2023
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Direct Taxes)
****

Dated the 23rd of January, 2024

EXPLANATORY CIRCULAR

CIRCULAR EXPLAINING THE PROVISIONS OF THE FINANCE ACT, 2023

CIRCULAR
INCOME-TAX ACT

Finance Act, 2023 ─ Explanatory Notes to the Provisions of the Finance Act, 2023

CIRCULAR NO. 1/2024, DATED the 23rd of January, 2024

AMENDMENTS OF THE INCOME-TAX ACT, 1961 CARRIED OUT THROUGH FINANCE ACT, 2023

Section of Income-tax Act, 1961	Particulars
2	Definitions
9	Income deemed to accrue or arise in India
10	Incomes not included in total income
10AA	Special Provisions in respect of newly established units in Special Economic Zones
11	Income from property held for charitable or religious purposes.
12A	Conditions for applicability of sections 11 and 12
12AB	Procedure for fresh registration
13	Section 11 not to apply in certain cases
17	“Salary”, “perquisite” and “profits in lieu of salary” defined
28	Profits and gains of business or profession
35D	Amortization of certain preliminary expenses
43B	Certain deductions to be only on actual payment
43D	Special provision in case of income of public financial institutions, public companies etc.

44AB	Audit of accounts of certain persons carrying on business or profession
44AD	Special provision for computing profits and gains of business on presumptive basis
44ADA	Special provision for computing profits and gains of profession on presumptive basis
44BB	Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils
44BBB	Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects
45	Capital Gains
47	Transactions not regarded as transfer
48	Mode of computation
49	Cost with reference to certain modes of acquisition
50AA	Special provision for computation of capital gains in case of Market Linked Debenture
54	Profit on sale of property used for residence
54EA	Capital gain on transfer of long-term capital assets not to be charged in the case of investment in specified securities.
54EB	Capital gain on transfer of long-term capital assets not to be charged in certain cases.
54EC	Capital gain not to be charged on investment in certain bonds.
54ED	Capital gain on transfer of certain listed securities or unit not to be charged in certain cases.
54F	Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house
55	Meaning of ‘adjusted’, ‘cost of improvement’ and ‘cost of acquisition’
56	Income from other sources
72A	Provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in amalgamation or demerger, etc.
72AA	Carry forward and set off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation in certain cases.
79	Carry forward and set off of losses in case of certain companies
80C	Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures etc.
80CCC	Deduction in respect of contribution to certain pension funds
80CCD	Deduction in respect of contribution to pension scheme of Central Government
80CCH	Deduction in respect of contribution to Agnipath Scheme
80G	Deduction in respect of donations to certain funds, charitable institutions, etc.
80-IAC	Special provision in respect of specified business
80LA	Deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre
87	Rebate to be allowed in computing income-tax
87A	Rebate of income-tax in case of certain individuals
88	Rebate on life insurance premia, contribution to provident fund, etc. (omitted)
92BA	Meaning of specified domestic transaction
92D	Maintenance, keeping and furnishing of information and document by certain persons
94B	Limitation on interest deduction in certain cases
111A	Tax on short-term capital gains in certain cases

112	Tax on long-term capital gains
115A	Tax on dividends, royalty and technical service fees in the case of foreign companies
115BAC	Tax on income of individuals and Hindu Undivided Family
115BAD	Tax on income of certain resident co-operative societies
115BAE	Tax on income of certain new manufacturing cooperative societies
115BB	Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever.
115BBJ	Tax on winnings from online games.
115JC	Special provisions for payment of tax by certain persons other than a company
115JD	Tax credit for alternate minimum tax
115TD	Tax on accreted income
115UA	Tax on income of unit holder and business trust.
115VP	Method and time of opting for tonnage tax scheme
116	Income-tax authorities.
119	Instructions to subordinate authorities
131	Power regarding discovery, production of evidence, etc.
132	Search and seizure
133	Power to call for information.
134	Power to inspect registers of companies.
135A	Faceless collection of information.
140B	Tax on updated return
142	Inquiry before assessment
148	Issue of notice where income has escaped assessmenT
149	Time limit for notice
151	Sanction for issue of notice.
153	Time limit for completion of assessment, reassessment and recomputation
154	Rectification of mistake.
158A	Procedure when assessee claims identical question of law is pending before High Court or Supreme Court.
158AB	Procedure where an identical question of law is pending before High Courts or Supreme Court.
170A	Effect of order of tribunal or court in respect of business reorganisation
177	Association dissolved or business discontinued.
189	Firm dissolved or business discontinued.
192A	Payment of accumulated balance due to an employee
193	Interest on securities
194B	Winnings from lottery or crossword puzzle,etc.
194BA	Winnings from online games
194BB	Winnings from horse race.
194LC	Income by way of interest from Indian company
194N	Payment of certain amounts in cash.
194R	Deduction of tax on benefit or perquisite in respect of business or profession
196A	Income in respect of units of non-residents.
197	Certificate for deduction at lower rate
206AB	Special provision for deduction of tax at source for non-filers of income-tax return
206C	Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc.
206CC	Requirement to furnish Permanent Account number by collectee
206CCA	Special provision for collection of tax at source for non-filers of income-tax return
241A	Withholding of refund in certain cases.
244A	Interest on refunds.
245	Set off and withholding of refunds in certain cases
245D	Procedure on receipt of an application under section 245C
245MA	Dispute Resolution Committee
245R	Procedure on receipt of application
246	Appealable orders before Joint Commissioner (Appeals)
249	Form of appeal and limitation.
250	Procedure in appeal
251	Powers of the Joint Commissioner (Appeals) or the Commissioner (Appeals).
253	Appeals to the Appellate Tribunal
264	Revision of other orders
267	Amendment of assessment on appeal.
269SS	Mode of taking or accepting certain loans, deposits and specified sum.
269T	Mode of repayment of certain loans or deposits.
271	Failure to furnish returns, comply with notices, concealment of income, etc.
271A	Failure to keep, maintain or retain books of account, documents, etc.
271AAC	Penalty in respect of certain income.
271AAD	Penalty for false entry, etc., in books of account.
271C	Penalty for failure to deduct tax at source
271FAA	Penalty for furnishing inaccurate statement of financial transaction or reportable account.
271J	Penalty for furnishing incorrect information in reports or certificates.
274	Procedure.
275	Failure to comply with the provisions of sub-sections (1) and (3) of section 178.
276B	Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B.
279	Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner
287	Publication of information respecting assesses in certain cases
295	Power to make rules.

 

AMENDMENTS TO THE FINANCE (NO. 2) ACT, 2004 CARRIED OUT THROUGH FINANCE ACT, 2023

Revision of rates of Securities Transaction Tax by amendments in Finance (No. 2) Act, 2004-

Chapter of Finance (No. 2) Act, 2004	Particulars
Chapter VII	Securities Transaction Tax

AMENDMENTS TO THE PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988 CARRIED OUT THROUGH FINANCE ACT, 2023

Rationalization of the provisions of the Prohibition of Benami Property Transactions Act, 1988 (the PBPT Act) –

Section of PBPT Act	Particulars
2	Definitions
46	Appeals to Appellate Tribunal

AMENDMENTS TO THE UNIT TRUST OF INDIA (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 2002 CARRIED OUT THROUGH FINANCE ACT, 2023

Extension of Income- tax exemption to Specified Undertaking of Unit Trust of India (SUUTI) till 31.03.2025 –

Section of Unit Trust of India (Transfer of Undertaking and repeal) Act, 2002	Particulars
8	Administrator to vacate office
13	Tax exemption or benefit to continue to have effect.

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