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Amendments to certain exemptions and Deductions
from Taxmann's Budget Marathon | Personal Taxation | Saraswathi Kasturirangan – Partner | Deloitte India
by Taxmann
The below amendments have been proposed in the Union Budget 2023
Capital gain exemptions
The exemption available u/s 54 and 54F of the Income Tax Act 1961 towards investment in new residential property has been proposed to be capped at INR 10 crore. Hence any gain made from sale of original long term capital asset (residential property for sec 54 and any long term capital asset for Sec 54F) in excess of INR 10 crore would now be subject to tax.
Taxation of insurance polices.
it is proposed to tax income from life insurance policies (other than ULIP for which provisions already exists) having premium or aggregate of premium above INR 5,00,000 in a year. Income is proposed to be exempt if received on the death of the insured person. Section 10(10D)
The proposed provision shall apply for policies issued on or after 1st April, 2023.
Double deduction in case of interest on borrowed capital for house property
• Interest on housing loan taken for acquisition/renewing or reconstruction of house property claimed as deduction earlier U/s 24 of the Act cannot be added to cost of acquisition/improvement at the time of computing the capital gain incomeas proposed under section 48 of the Act
