Now the central government is also ready to change the pension system of government employees. This is the reason that on Friday, Finance Minister Nirmala Sitharaman made a big announcement in this regard while presenting the Finance Bill 2023 in the Lok Sabha.
The Finance Minister said that the Central Government has received several proposals for the betterment of the National Pension System related to government employees. She said that she proposes to form a committee under the chairmanship of the Finance Secretary to consider this matter of pension and find a solution for the betterment of the pension system. While considering these things, this committee will also take care of the financial situation along with the needs of the employees so that the common citizen can also be protected.
Nirmala Sitharaman also said that such a solution will be found for the betterment of the pension system, which can be adopted by both the Center and the States. This statement of the Finance Minister in the Lok Sabha took financial experts by surprise, as the Central Government was continuously opposing the restoration of the Old Pension Scheme (OPS) on behalf of some State Governments. In such a situation, this change will not be a huge financial burden like the old pension scheme.
After this big announcement, the Finance Bill 2023 was passed in the Lok Sabha with more than 60 amendments. With this, the Lok Sabha was adjourned till Monday.
Important points of the Finance Bill
Tax will not be levied on income up to 7.27 lakh – In the budget, the government had announced that under the new system of tax, there will be no tax on income up to seven lakh, but if someone’s income reaches Rs 7,00,100 annually, then he will have to pay Rs 25,010. Will have to pay tax of Rs. This means that if income increases by only Rs 100 from the exemption limit of Rs 7 lakh, tax of Rs 25,010 will have to be paid. Therefore, now this rule has been brought that if the income above seven lakhs is less than the tax applicable on it, then no tax will have to be paid. According to financial experts, thus now no tax will have to be paid on income up to Rs 7,27,700.
Change in Tax Rates of Debt Mutual Funds – If more than 35% of the mutual fund’s investment is not in debt funds, then the income from it will be taxed at the rate of short term capital gains tax. Financial experts say that this will reduce the attraction of people towards mutual funds.
The establishment of GST Appellate Tribunal was also approved in the Finance Bill. Now there will be no hurdle in the establishment of GST Appellate Tribunal in the new financial year.
Foreign companies will now be taxed at the rate of 20 percent instead of 10 percent on the earnings on technical fees.
Credit card payments made during foreign travel will be treated under the Liberalized Remittance Scheme (LRS). The Reserve Bank will look into the matter, so that tax at source can be arranged on credit card payments during foreign travel.
The Tax Deduction at Source (TDS) system will be applicable on online gaming applications from April 1. In the budget, it was announced to implement this system from July 1.
The Securities Transaction Tax (STT) on sale of options was increased to 25 per cent. Now Rs 6250 STT will have to be paid on sale of option worth Rs 1 crore. Till now 5000 rupees had to be paid.