Finance Bill 2023 Passed By Lok Sabha With 64 Amendments. Check Key Details

Amid the ruckus, Finance Minister Nirmala Sitharaman also announced the setting up of a committee under finance secretary to look into pension issues of government employees

While moving the bill for passage and consideration, finance minister Nirmala Sitharaman made a few key announcements. ( Image Source :Sansad tv )

The Finance Bill 2023 was passed by Lok Sabha on Friday with 64 amendments, including the withdrawal of long-term tax benefits on debt mutual funds and setting up a GST Appellate Tribunal, reported news agency PTI. Amid the ruckus by opposition members demanding a JPC probe into the Adani issue, Finance Minister Nirmala Sitharaman also announced the setting up of a committee under finance secretary to look into pension issues of government employees.

The changes brought in the Finance Bill 2023 will come into effect for the fiscal year starting April 1. 

The finance minister introduced 64 official amendments to the finance bill which was tabled in Parliament on February 1 along with the Budget proposals. With this, 20 new sections have been added to the Bill. It will now be sent to the Rajya Sabha.

While moving the bill for passage and consideration, Finance Minister Nirmala Sitharaman made a few key announcements.

Nirmala Sitharaman announced that a committee will be set up under Finance Secretary on the pension system to address the needs of employees and also maintain fiscal prudence. 

She also said the Reserve Bank of India will look into the payments made through credit cards for foreign tours which escape tax at source.  Sitharaman said it has come to notice that payment for foreign tours through credit cards is not being captured under Liberalised Remittances Scheme (LRS) and such payments escape tax collection at source.

"RBI is being requested to look into this with a view to bringing credit card payments for foreign tours within the ambit of LRS and tax collection at the source there on," she announced.

Here Are Key Amendment In Finance Bill 2023

• Mutual funds with less than 35 per cent of their total proceeds invested in equity shares of domestic companies lose indexation benefits and will be taxed as short-term capital gains. As of now, debt mutual funds are treated as long-term investments if held for more than 3 years. Long-term capital gains are taxed at 20 power cent with indexation benefits or 10 per cent without indexation.
• As per an amendment, the securities transaction tax (STT) on the sale of options has been hiked to Rs 2,100 on a turnover of Rs 1 crore against an earlier levy of Rs 1,700, an increase of 23.5 percent.
• On the sale of futures contracts, STT has been hiked to Rs 12,500 on Rs 1 crore of turnover against Rs 10,000 earlier. 
• Enhanced tax benefits to offshore banking units operating in GIFT city. Offshore banking units will get a 100 per cent deduction on income for 10 years. 
• Tax on royalty or technical fees earned by foreign (non-resident) companies has been hiked from 10 per cent to 20 per cent.