Union Budget 2023-24 + FINANCE Bill, 2023

G. Others

Omission of certain redundant provisions of the Act

The existing provisions of the section 88 of the Act relates to rebate on life insurance premia, contribution to provident fund, etc.

2. The said section has no relevance at present as it was sunset by the Finance Act, 2005 and section 80C was introduced for allowing deduction on various instruments listed therein.

3. In order to remove the redundant provisions from the Act, it is proposed to omit section 88 from the Act.

4. Section 10 of the Act provides for incomes which are not included in total income. Clauses (23BBF), (23EB), (26A), (41) and (49) of this have already been sunset

5. Hence, it is proposed to omit clauses (23BBF), (23EB), (26A), (41) and (49) of section 10 of the Act.

6. This amendment will take effect from the 1st day of April, 2023.

[Clauses 5, 26, 27, 28, 29, 36, 37, 38, 42, 44, 48 & 49]

 

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Full Text:

Union Budget 2023-24 + FINANCE Bill, 2023

Omission of redundant tax provisions: repeal of section 88 and specified income exclusions to streamline statutory law. Proposal to omit a provision relating to rebate on life insurance premia and provident fund contribution-formerly in section 88-on the ground that it was sunsetted and superseded by the deduction regime under section 80C; and to omit specified clauses of section 10 that had already been sunsetted, with the amendments to take effect from the commencement of the next fiscal year beginning 1st April, 2023.