• Notification Date: 23-01-2023
• Notification No: N/A

Rationalised TDS Framework, Concessional IT Regime expected in Budget 2023

The EY said on Sunday that the government is expected to provide a more rationalised TDS framework in the upcoming Budget 2023 that would reduce the compliance burden for taxpayers. Besides, it is also expected to introduce a revamped new concessional tax regime by providing additional benefits like standard deduction. 

EY also added that the government should provide some respite to taxpayers with low and medium income with annual upto Rs 20 lakh of annual income on the personal income tax side. 

There is also a possibility of 'green' incentives to be introduced in the upcoming budget, such as tax exemption to interest from green bonds and rationalisation of capital gains rates and holding periods could be expected in the Budget. The provisions of the new Budget are to be unveiled in Parliament on February 1. 

The EY said that with regard to Tax Deducted at Source (TDS), at present there are 31 sections under the Income-tax Act deal with different types of payments to residents, where the withholding tax rates vary from 0.1 - 30 per cent. "The government may provide a more rationalised TDS framework to reduce the complexity and compliance burden for taxpayers. There could be simplification in the TDS procedures pertaining to NR (non-resident) individuals," EY said. Investment and production-linked incentives may be considered for strategic sectors that can strengthen 'sustainability' or lead to energy efficiency, EY added.