What are the key takeaways from Finance Bill 2023?

Lok Sabha, on Friday, passed the Finance Bill 2023 with over 45 amendments amid slogan shouting by opposition members. The Bill was passed with several key amendments and 20 more sections have been added to the Bill. Among the most important takeaways, the amendments include the scrapping of long-term capital gains tax on debt mutual funds. Notably, the government also hiked the Securities transaction tax (STT) on the sale of options.

• On LTCG on debt MFs: Among the most anticipated amendments, the Bill proposed to scrap long-term capital gains tax on debt mutual funds.

• STT on sale of Options: Besides, the Securities transaction tax (STT) on the sale of options has been hiked to Rs 2,100 on the turnover of Rs 1 cr vs the earlier applicable levy of Rs 1,700.

• Angel Tax: Angel Tax to come into effect from Apr 1, 2023.

• Foreign tour payments on credit cards: Payments for foreign tours through credit cards are not being captured under the Liberalised Remittance Scheme (LRS) & they escape tax collection at source - FM

• The RBI is being requested to bring credit card payments for foreign tours within the ambit of LRS and tax collection at the source thereon, says FM

• Committee on pensions: Proposes to set up a committee under the Finance Secretary to look into the issue of pensions and evolve an approach to address the needs of employees