FINANCE ACT
A Finance Act is a piece of legislation passed by a government that outlines the country’s annual budget, tax changes, and other financial measures. Finance Acts are typically introduced and passed by the legislature, and they play a crucial role in shaping a country’s fiscal policies and managing its finances.
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What is Finance Act?
The Finance Act is a law that is passed by the Indian Parliament every year to implement the financial proposals of the Central Government for the next fiscal year. It contains provisions relating to various taxes, duties, exemptions, and reliefs that affect the income and expenditure of the government and the people. The Finance Act also specifies the rates of income tax, customs, excise, GST, and other cuss for the relevant assessment year.
The Finance Act is usually presented along with the Union Budget by the finance minister in the Lok Sabha. After a general discussion, the Finance Bill is introduced and referred to the Standing Committee for detailed examination. The Standing Committee submits its report to the Lok Sabha, which then considers and passes the Finance Bill with or without amendments. The Finance Bill is then sent to the Rajya Sabha for its recommendations. The Rajya Sabha can either accept or reject the Finance Bill, but it cannot amend it. If the Rajya Sabha does not return the Finance Bill within fourteen days, it is deemed to have been passed by both Houses. The Finance Bill then receives the assent of the President and becomes the Finance Act.
Document Required For Finance Act
- Employee Master File.
- Acceptance of Employee Apology All Purpose.
- Admin Manual.
- Stationary Request template.
- Warning Notice for Attendance Issues.
- Warning Notice for Behaviour Issues.
- Warning Notice for General Behaviour Issues.
The certificate of incorporation is the certificate which specifies the birth of the company as a separate entity. A company legally comes into existence or becomes a separate legal entity on the date stated in its certificate of incorporation.
What is PAN? While TAN is a number allocated to tax-deductors, PAN or Permanent Account Number is allotted to taxpayers. PAN is also a 10-digit identity number mandated by the Income Tax Department for any individual who carries out financial transactions or pays the income tax.
The Memorandum of Association (MoA) and Articles of Association (AoA) are not the same. The MoA lays down the essential details about the company, while the AoA includes the internal rules and regulations of the company. The AoA is subordinate to the MoA
Director master data is available on the MCA portal, where we can check the director’s DIN (Directors Identification Number), or the number of companies in which the director has been appointed as the directors of the company.
Last Audited Accounts means the audited consolidated balance sheet of the Target Group as at the Last Audited Accounts Date and the consolidated audited profit and loss account of the Target Group made up to the Last Audited Accounts Date and the auditor’s and the directors’ reports and notes thereon.
Bank Account with a minimum paid up equity share capital of Rs. 2 Crore
How Can i Calculate My Income Tax Liability?
Your income tax liability is the amount of tax that you owe to the government based on your income and deductions. To calculate your income tax liability, you need to follow these steps:
- Step 1: Add up all your sources of income, such as salary, interest, rental, capital gains, etc. This is your gross total income.
- Step 2: Deduct any exemptions or deductions that you are eligible for, such as HRA, LTA, standard deduction, section 80C, section 80D, etc. This is your net taxable income. If you opt for the new tax regime, you cannot claim most of these exemptions or deductions.
- Step 3: Apply the tax rates as per the tax slabs that are applicable to you based on your age and income. You can choose between the old tax regime and the new tax regime, whichever is beneficial for you. The tax slabs for FY 2022-23 (AY 2023-24) are as follows:
Old Tax Regime | New Tax Regime |
Up to Rs 2.5 lakh | Nil |
Between Rs 2.5 lakh and Rs 5 lakh | 5% |
Between Rs 5 lakh and Rs 7.5 lakh | 20% |
Between Rs 7.5 lakh and Rs 10 lakh | 20% |
Between Rs 10 lakh and Rs 12.5 lakh | 30% |
Between Rs 12.5 lakh and Rs 15 lakh | 30% |
Above Rs 15 lakh | 30% |
- Step 4: Add surcharge and cess to the tax amount calculated in step 3. Surcharge is an additional tax levied on high-income earners. Cess is a charge levied for a specific purpose, such as health and education. The surcharge rates for FY 2022-23 (AY 2023-24) are as follows:
Income Range | Surcharge Rate |
Up to Rs 50 lakh | Nil |
Between Rs 50 lakh and Rs 1 crore | 10% |
Between Rs 1 crore and Rs 2 crore | 15% |
Between Rs 2 crore and Rs 5 crore | 25% |
Above Rs 5 crore | 37% |
The cess rate for FY 2022-23 (AY 2023-24) is fixed at 4% of the tax plus surcharge.
- Step 5: Subtract any tax credits or rebates that you are eligible for, such as section 87A, TDS, advance tax, etc. This is your final income tax liability.
Frequently Asked Questions
If you are still thinking about opting for GSTBOY.COM for your loved ones, you can always check out the common queries about our service and support.
A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares /stocks /bonds /debentures / securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
NBFCs raise their funds from different sources such as like banks, insurance companies, public deposits (only for NBFCs holding license to accept deposits from RBI), through issue of debentures, commercial papers and other inter-corporate loans.
Yes if they have been granted a license reflecting their eligibility to accept deposits from public. However these deposits cannot be demand deposits
NBFCs lend and make investments and hence their activities are similar to that of banks; however there are a few differences as given below; a. NBFC cannot accept demand deposits b. NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself, c. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.