BUDGET BYTE– PRO & CON FOR HIGH NET WORTH INDIVIDUALS (HNI’S)

Budget Byte – What Are Your Pros & Cons For High Net Worth

In Favour Of HNI’s

• Pre Budget, the maximum surcharge leviable on income was 37% for those who earns more than 5 crores in a year making the effective tax services rate at 42.74% (i.e. 30% Tax + 37% Surcharge + 4% Cess). The same now have been propose to reduce to 25% making effective tax rate at 39% (i.e. 30% Tax + 25% Surcharge + 4% Cess). DSRV India has important point to consider is that the proposal to reduce the surcharge is only applicable for new regime and not for old regime.
  Recommended: WHAT YOU MUST KEEP IN MIND WHEN FILING INCOME TAX RETURN (ITR) IN 2023

Not In Favour Of HNI’s

• Benefit claimed under Section 54/54F for investment in new property limited till 10 crores i.e. no more infinite capital gains exemption on buying a residential house after selling another residential house.
• Income from insurance policies (for policies taken after 1st April 2023) having premium or aggregate of premium above Rs 5,00,000 in a year shall now be taxable.
• Market Linked debentures are to be taxed at applicable tax rates instead of 10% earlier.

www.dsrvindia.com

CA Sanjay Agrawal

CA Utkarsh Agrawal