64 amendments, tax sop for debt funds goes

New Delhi, March 24

The Lok Sabha on Friday passed the Finance Bill 2023 with 64 official amendments, including the one that seeks to withdraw long-term tax benefits for certain categories of debt mutual funds to bring them on a par with other interest earning instruments and another for setting up a GST appellate tribunal.

The Finance Bill that gives effect to tax proposals for fiscal year starting April 1 was passed without a discussion amid ruckus by Opposition members demanding a Joint Parliamentary Committee (JPC) probe into the allegations against the Adani Group.

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.

While moving the Bill for passage and consideration, Finance Minister Nirmala Sitharaman also announced the setting up of a committee under the Finance Secretary to look into pension issues of government employees.

She said the RBI would look into the payments made through credit cards for foreign tours which escaped tax at source. Sitharman introduced 64 official amendments to the Finance Bill, which was tabled in Parliament on February 1.

Additional relief under new tax regime

• Under new tax regime, those earning marginally higher income than no-tax ceiling of Rs 7 lakh to pay nil tax
• As per amendment, tax payable should not be more than the income that exceeds Rs 7 lakh
• This means, individuals having income up to Rs 7,27,700 could stand to benefit from this relief