NEW DELHI: Finance minister Nirmala Sitharaman announced the setting up of a committee headed by the finance secretary to look into pension issues of government employees while maintaining fiscal prudence to protect common citizens.
The move comes in the backdrop of non-BJP states deciding to revert to the DA-linked Old Pension Scheme (OPS) and employee organisations in some other states raising a demand for the same.
She made the announcement while seeking 64 amendments to the Finance Bill 2023, including providing marginal relief to tax payers under the new regime, and removing the long-term tax benefit which long-term investors in debt mutual funds enjoyed over bank fixed deposits.
The Union Budget had proposed that under the new tax regime, a taxpayer with annual income of Rs 7 lakh need not pay income-tax. However, individuals earning marginally higher income than Rs 7 lakh would end up paying Rs 25,010. Following the amendment, individuals having income up to Rs 7,27,700 need not pay I-T.
The Lok Sabha later passed the Bill, bringing the new provisions into effect from April 1.
From April 1, investments in debt mutual funds will be taxed as short-term capital gains, stripping investors of the long-term tax benefits that made such investments popular.
Finance secretary T.V. Somanathan said the move was aimed at bringing parity with instruments which are of a similar nature.
Credit card payments for foreign travel will be brought under the purview of the Liberalised Remittance Scheme (LRS) of the Reserve Bank to ensure that such expenses do not escape tax collection at source). The Union Budget proposed TCS for foreign outward remittance under LRS other than for education and medical purposes of 20 per cent applicable from July 1, 2023.
With the passage of the Bill, finance minister Nirmala Sitharaman Union Budget of February 1 which announced relief to taxpayers opting for the new tax regime will come into effect from April 1.
The amendments were approved by voice vote without discussion amidst protest by the opposition members who were demanding JPC on Adani issue. These will now go to Rajya Sabha. The Lok Sabha had on Thursday approved the Rs 45 lakh-crore Budget for 2023-24 fiscal in just nine minutes without any discussion.
