Appellate authority change: Joint Commissioner (Appeals) recognised alongside Commissioner (Appeals) under income-tax rules.
The amendment recognises Joint Commissioner (Appeals) alongside Commissioner (Appeals) in rule 45, replaces Deputy Commissioner references with Joint Commissioner in rule 46A, and inserts Joint Commissioner (Appeals) or before Commissioner in Appendix-II Form No.35; these textual substitutions take effect from publication in the Official Gazette under the Income-tax (Sixth Amendment) Rules, 2023.

Leave encashment exemption under section 10(10AA) sets a fixed maximum for tax free retirement leave payment.
Specifies a monetary ceiling for tax exemption of cash equivalent of earned leave payable at retirement under section 10(10AA), fixing Rs. 25,00,000 as the maximum exempt amount for employees covered by that sub clause who retire, effective from 1 April 2023 with certification that no person is adversely affected by retrospective operation.

Tax exemption for startup share premium: excess consideration excluded from section 56(2)(viib) when DPIIT conditions met.
Provisions of section 56(2)(viib) shall not apply to consideration received by a company for issue of shares that exceeds face value where the company is recognized as a DPIIT startup, meets the conditions in paragraph 4 of the DPIIT recognition notification, and files the declaration required by paragraph 5 of that notification; the notification supersedes the earlier 2019 communication and is effective from the stated commencement of the fiscal period.

Exemption for notified foreign and institutional investors from taxation on share premium for start up investments.
The notification exempts specified investor classes from the deeming provision treating excess consideration on share issuance as taxable income: government and government related investors; regulated banks and insurance entities; and resident entities of listed jurisdictions comprising Category I foreign portfolio investors, endowment funds, pension funds, and broad based pooled investment vehicles with over fifty investors that are not hedge or complex strategy funds.

Net winnings calculation for online gaming: new formula governs withholding and reporting of tax on withdrawals.
The rules insert rule 133 prescribing algebraic formulas to compute net winnings from online games for tax and withholding purposes: annual net winnings equal (aggregate withdrawals + closing balance) less (non taxable deposits + opening balance); first withdrawal net winnings equal withdrawal less (non taxable deposits + opening balance) with a floor at zero; subsequent withdrawals subtract earlier net winnings already taxed; end of year net winnings combine aggregate withdrawals and balances less deposits, opening balance and previously taxed winnings. Explanations define non taxable/taxable deposits, aggregate treatment across user accounts, in kind/direct payments deemed as taxable deposits and withdrawals, exclusion and recharacterisation rules for promotional credits, and intra intermediary transfer treatment.

TDS classification: Mahila Samman Savings Certificate notified as a Scheme for TDS purposes, effective on publication.
The Central Government notifies the Mahila Samman Savings Certificate, 2023 as a Scheme for the purposes of sub clause (c) of clause (i) of sub section (3) of section 194A of the Income tax Act, 1961. The Scheme was made under section 3A of the Government Savings Promotion Act, 1873 and earlier published via G.S.R. 237(E) dated 31st March, 2023; this notification takes effect from its publication in the Official Gazette.

Tax exemption under section 10(46) confirms specified FSSAI receipts are tax-exempt subject to non-commercial and filing conditions.
Notification under clause (46) of section 10 exempts specified income of the Food Safety and Standards Authority of India: grants-in-aid from the Ministry of Health and Family Welfare; statutory fees (licence, registration, analysis/testing fees) fixed under Food Safety Act regulations and approved by the Government; penalties under the Food Safety Act; and income earned on those receipts. The exemption is conditional on the Authority not engaging in commercial activity, maintaining unchanged activities and income character, and filing returns per the clause (g) requirement of sub-section (4C) of section 139. The notification is effective for financial years 2020-2021 to 2024-2025.

Exemption under section 10(46): specified municipal authority incomes exempt subject to non commerciality and filing conditions.
Notification grants exemption under section 10(46) to the Pune Metropolitan Region Development Authority for specified incomes: government grants; fees, user charges and fines as Local Town Planning Authority; land lease rentals from monetization of government lands; stamp duty grant; miscellaneous receipts such as penalties and registration fees; and interest on these receipts. The exemption is conditional on the Authority not engaging in commercial activity, maintaining the nature of activities and specified income, and filing income tax returns as per the statutory return provision, and is applied retrospectively to specified financial years.

Double taxation avoidance treaty effects tax allocation, PE rules, withholding limits and anti abuse measures between India and Chile.
The notification gives effect in India to the India-Chile Agreement and Protocol eliminating double taxation and preventing fiscal evasion on income. The treaty applies to residents, specifies covered taxes, treats fiscally transparent entities as resident income when domestic law does so, and allocates taxing rights across major income categories-including immovable property, business profits attributable to a permanent establishment, dividends, interest, royalties, fees for technical services and capital gains-while providing methods for elimination of double taxation, a Mutual Agreement Procedure, Exchange of Information, and a comprehensive Limitation of Benefits regime.

National Savings Certificates updated maturity, interest and premature closure values for accounts opened on or after 1 April 2023.
The amendment deems the Scheme to be in force from 1 April 2023, narrows prior "on or after" references to specified date ranges, fixes the maturity value for an account opened on or after 1 April 2023 with Rs.1000 at Rs.1449.03 (proportionate for other sums), prescribes rounding of fractional rupees (>=50 paisa round up), inserts an annual interest accrual schedule for Rs.1000 certificates purchased on or after 1 April 2023, and adds a table of premature closure amounts for accounts opened on or after 1 April 2023.

National Savings Monthly Income Account: deposits from April 1, 2023 bear 7.4% interest per annum.
The amendment specifies that deposits between 1 January, 2023 and 31 March, 2023 fall within the substituted eligibility period and provides that deposits made under the Scheme on or after 1 April, 2023 shall bear interest at the rate of 7.4% per annum; the Scheme is effective from 1 April, 2023 and the memorandum states no person will be adversely affected by the retrospective operation.

Kisan Vikas Patra updates: new nine years seven months maturity and prescribed premature encashment values for post April accounts.
Amendments to the Kisan Vikas Patra Scheme revise transitional date references to cover "between 1st January, 2023 and 31st March, 2023 (both days inclusive)", set the maturity period for accounts opened on or after 1 April 2023 at nine years and seven months with deposits doubling on maturity, and insert TABLE 5 prescribing premature encashment values for a 1,000 rupee certificate opened on or after 1 April 2023, culminating in a 2,000 rupee maturity value.

Scientific research approval qualifies an institution for tax deduction of research expenditure under section 35 of the Income tax Act.
Central Government approves National Institute of Design, Ahmedabad as a University, College or Other Institution for qualifying expenditure as scientific research under clause (ii) of sub section (1) of section 35 of the Income tax Act, 1961 read with Rules 5C and 5E of the Income tax Rules, 1962, with effect from the date of publication and retrospective applicability certified as not adversely affecting any person.

Specified incomes added to notification: profit on asset sale, vehicle personal charges, tax-refund interest, and government securities interest.
Central Government amends Notification No. 34/2020 by inserting clauses (m)-(p) in Paragraph 1 after clause (l), deemed effective from 23rd June, 2020, adding: profit on sale of fixed assets; charges collected for personal use of office vehicle by employees; interest on income tax refund; and interest earned on government securities. The amending instrument is Notification No. 22/2023 dated 17th April, 2023 and includes a certification that retrospective effect does not adversely affect any person.

Cost Inflation Index revision affects capital gains indexation; the updated index applies from the assessment year beginning after April first.
Amendment adds a new table entry inserting the Cost Inflation Index value of 348 for Financial Year 2023-24 by exercising powers under clause (v) of the Explanation to section 48 of the Income-tax Act, 1961; the amendment takes effect from 1 April and applies to the corresponding assessment year and subsequent assessment years.

Exemption under section 10(46): specified CBSE receipts exempted subject to non-commercial activity, unchanged income nature and return filing.
Notification under clause (46) of section 10 designates the Central Board of Secondary Education, Delhi, as a notified board exempting specified income comprising examination fees; affiliation fees; sale of textbooks and publications; registration, sports, training and other academic receipts; receipts from projects/programmes; interest on income tax refunds; and interest on those receipts, subject to non-engagement in commercial activity, unchanged nature of activities and specified income, and filing of return as prescribed.

Exemption under section 10(46): specified CBSE receipts exempt subject to non commerciality, unchanged activities and prescribed return filing.
Notification under clause (46) of section 10 exempts specified CBSE incomes: examination fees; affiliation fees; sale of textbooks/publications; registration, sports, training and other academic receipts; receipts from CBSE projects/programmes; interest on income tax refunds; and interest on those receipts. Exemption is subject to conditions: no commercial activity, unchanged nature of activities and specified incomes across financial years, and filing returns under clause (g) of sub section (4C) of section 139. The notification is retrospective to financial year 2013-2014.

Exemption from specified income: notification grants tax exemption subject to non commerciality and return filing conditions.
Notification under clause (46) of section 10 notifies Greater Noida Industrial Development Authority as entitled to exemption for specified incomes: receipts from disposal of land, buildings and other properties; rents, fees and charges from such disposals; interest/penalties on deferred payments from allottees; water, sewerage and municipal charges from allottees; and interest on these receipts. The exemption is conditional on no engagement in commercial activity, unchanged nature of activities and income across the financial years, and filing returns under clause (g) of section 139(4C); applied for FY2020-2021 to 2022-2023.

Jurisdiction list update: specified foreign jurisdictions set for section 285BA reporting and related tax information obligations.
Amendment substitutes the Table in Notification No. 78/2018 to specify the foreign jurisdictions applicable for the purposes of section 285BA of the Income tax Act, as read with the Explanation to clause (6) of rule 114F; the replacement Table lists the named jurisdictions that determine the territorial scope of the reporting mechanism under the said provision.

Tax exemption for specified authority granted, subject to non-commercial and compliance conditions and retrospective application to prior financial years.
The Central Government grants tax exemption under clause (46) of section 10 to Bhadohi Industrial Development Authority in respect of specified receipts: disposal and long-term leases of immovable property, lease rent and related fees, interest/penalties on deferred payments from allottees, water/sewerage and municipal charges from allottees, and interest on these receipts. The exemption is subject to conditions limiting commercial activity, preserving the nature of activities and incomes, and prescribed return filing, and is applied retrospectively for specified prior financial years.