Leave encashment tax exemption increased, capped per employee and aggregated across employers after notification.
The tax exemption for leave encashment of non-government salaried employees on retirement or otherwise under section 10(10AA)(ii) has been increased to Rs.25 lakh w.e.f. 01.04.2023. The aggregate exempt amount shall not exceed Rs.25 lakh where payments are received from more than one employer in the same previous year, and the exempt amount in the year of payment must be reduced by any exemption already allowed under section 10(10AA)(ii) in prior year(s). Notification No.31/2023 dated 24.05.2023 effects the change.

Tax Collection at Source on LRS remittances revised, with higher TCS rates and removal of the international credit card exemption.
Tax Collection at Source under Section 206C(1G) applies to remittances under the Liberalised Remittance Scheme; Finance Act 2023 raised TCS rates for certain categories while preserving concessional treatment for education and medical remittances (including a lower rate for funds from institutional education loans). The May 16, 2023 omission of Rule 7 of FEM(CAT) Rules removes the exemption for international credit-card use abroad, bringing credit-card transactions within LRS accounting to prevent circumvention of remittance limits and to ensure uniform foreign exchange treatment.

Angel tax valuation rules expanded to include non-resident transactions with new valuation methods and targeted exclusions.
Amendment extends the angel tax to non-resident consideration exceeding FMV under section 56(2)(viib). Proposed revisions to Rule 11UA broaden accepted valuation methods for non-resident transactions, permit price matching for notified non-resident investors and qualifying funds, accept merchant banker reports dated within a prescribed period, and provide a safe-harbour variation to address round-to-round economic fluctuations. A class-based exclusion is proposed for specified sovereign, regulated financial, institutional and pooled investment investors, and DPIIT-recognised start-ups are proposed to be exempt under a modified notification.

Tax evasion investigations uncover unaccounted cash sales, parallel books, and seized assets leading to ongoing probes.
Income-tax authorities conducted coordinated search and seizure operations across multiple premises in West Bengal and Assam targeting a business group and a close associate, revealing suppression of yield, unaccounted cash sales, handwritten and digital evidence of cash transactions, parallel cash books and bogus expense claims; preliminary review showed significant unaccounted income, incriminating documents relating to cash land payments and extensive unrecorded receipts, with seizures of unaccounted cash and jewellery and further investigations ongoing.

Social security schemes extend affordable insurance and pension coverage, simplifying enrolment and claims for underserved account holders.
Three Jan Suraksha schemes provide targeted insurance and pension coverage for underserved bank and post office account holders: two one year renewable insurance schemes with auto debit premium mandates delivering standardized death and accidental death/disability benefits to eligible age bands, and a contributory pension scheme under the national pension framework guaranteeing a minimum pension with government-funded shortfall support, spousal continuation and nominee corpus return rules.

Financial sector stability: coordinated regulatory vigilance, compliance reduction and cybersecurity to safeguard system resilience.
The Financial Stability and Development Council directed regulators to ensure financial sector stability through coordinated vigilance and timely mitigation of vulnerabilities, to reduce compliance burden by improving regulatory quality with progress reviews by the Union Finance Minister, to strengthen cybersecurity preparedness of financial information systems, and to conduct a special drive to settle unclaimed deposits and claims across banking, securities, mutual funds and insurance. The Council also reviewed action on Budget announcements and set timelines for implementation of Budget 2023-24 measures.

Refund of forfeited securities to MSMEs for COVID 19 period; substantial refunds and debarment revocation available under scheme.
Vivad se Vishwas I directs procuring entities across central government bodies to refund a substantial portion of forfeited performance security, bid security, liquidated damages and risk purchase amounts deducted or realized during the COVID 19 period; interest is not payable and claims are to be processed through Government e Marketplace.

International financial diplomacy: Minister leads delegation at the ADB annual meeting, focusing on policy coordination and investor engagement.
The Union Minister for Finance will lead the Indian delegation to the 56th Annual General Meeting of the ADB Board of Governors, joining official delegations, observers, civil society, financial institutions and private sector participants. The Minister's programme includes plenary and focal events, bilateral meetings, roundtables with global business leaders and investors, diaspora engagement, and participation as a panelist in the ADB Governors' Seminar on policies supporting the region's economic rebound.