Presumptive tax (44AD, 44ADA and 44AB) rule changes in Budget 2023

Budget 2023 has proposed welcome changes in the presumptive taxation rules for small businesses and certain professionals. Section 44AD: Old rule: Individuals, HUF or partnership firms (other than LLP) with a turnover or gross receipt of two crore rupees or less are eligible.¬† Taxable income (profit from business) can be set to 8% or 6%…

Continue reading →

LIC IPO 10% reserved for policyholders: rules explained

Finance Bill 2021 has proposed several amendments to the Lic Insurance Corporation Act 1956. Most notable among these is the 10% reservation of the LIC IPO issue size to policyholders. Here is an explanation of the associated rules. What exactly does the finance bill say?¬†Extract from Page 108 of the bill regarding various categories of…

Continue reading →

Is the interest from PF contributions above 2.5 lakh taxable every year?

Finance Bill 2020 has proposed that contribution above 2.5 lakhs by employees into recognised provided funds will be taxed. If an excess contribution is made in one financial year, will it be taxed only in that year or in subsequent financial years until maturity or withdrawal? While a precise answer to this is not available…

Continue reading →