New income slab

 n this part you can gain knowledge about the normal tax rates applicable to different taxpayers.

For special tax rates applicable to special incomes like long term capital gains, winnings from

lottery, etc. refer “Tax Rates” under “Tax Charts & Tables”.

Normal tax rates for Individual & HUF:

The normal tax rates applicable to a resident individual will depend on the age of the individual.

However, in case of a non-resident individual the tax rates will be the same irrespective of his age.

For the purpose of ascertainment of the applicable tax slab, an individual can be classified as

follows:

Resident individual below the age of 60 years.

Resident individual of the age of 60 years or above at any time during the year but below

the age of 80 years.

Resident individual of the age of 80 years or above at any time during the year.

Non-resident individual irrespective of the age.

Individuals

(Other than senior and super senior citizen)

Net Income Range Rate of Income-tax

Assessment Year 2023-24 Assessment Year 2022-23

Up to Rs. 2,50,000 - -

Rs. 2,50,000 to Rs. 5,00,000 5% 5%

Rs. 5,00,000 to Rs. 10,00,000 20% 20%

Above Rs. 10,00,000 30% 30%

Senior Citizen

(who is 60 years or more at any time during the previous year)

Net Income Range Rate of Income-tax

Assessment Year 2023-24 Assessment Year 2022-23

Up to Rs. 3,00,000 - -

Rs. 3,00,000 to Rs. 5,00,000 5% 5%

Rs. 5,00,000 to Rs. 10,00,000 20% 20%

Above Rs. 10,00,000 30% 30%

Super Senior Citizen

(who is

Year 2023-24 Assessment Year 2022-23

Up to Rs. 5,00,000 - -

Rs. 5,00,000 to Rs. 10,00,000 20% 20%

Above Rs. 10,00,000 30% 30%

Hindu Undivided Family (Including AOP, BOI and Artificial Juridical Person)

Net Income Range Rate of Income-tax

Assessment Year 2023-24 Assessment Year 2022-23

Up to Rs. 2,50,000 - -

Rs. 2,50,000 to Rs. 5,00,000 5% 5%

Rs. 5,00,000 to Rs. 10,00,000 20% 20%

Above Rs. 10,00,000 30% 30%

Surcharge: Surcharge is levied on the amount of income-tax at following rates if total income of

an assessee exceeds specified limits:-

Rate of Surcharge

Assessment Year 2023-24 Assessment Year 2022-23

Range of Income Range of Income

Rs. 50

Lakhs to

Rs. 1

Crore

Rs. 1

Crore 

toRs. 2

Crores

Rs. 2

Crores

to Rs. 5

Crores

Rs. 5

crore

s to 

Rs.10

Crores

Exceedin

g Rs. 10

Crores

Rs. 50

Lakhs to

Rs. 1

Crore

Rs. 1

Crore 

toRs. 2

Crores

Rs. 2

Crores

to Rs. 5

Crores

Rs. 5

crore

s to 

Rs.10

Crores

Exceedin

g Rs. 10

Crores

10% 15% 25% 37% 37% 10% 15% 25% 37% 37%

Note:

1) The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income 

chargeable to tax under sections 111A, 112A and 115AD. Hence, the maximum rate of 

surcharge on tax payable on such incomes shall be 15%.

2) From Assessment Year 2023-24 onwards:

o The maximum rate of surcharge on tax payable on dividend income or capital gain 

referred to in Section 112, shall be 15%. 

o The surcharge rate for AOP with all members as a company, shall be capped at 15%.

However, marginal relief is available from surcharge in following manner-

a) in case where net income exceeds Rs. 50 lakh but doesn’t exceed Rs. 1 Crore, the amount

payable as income tax and surcharge shall not exceed the total amount payable as income tax

on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.

b) in case where net income exceeds Rs. 1 crore but doesn’t exceed Rs. 2 crore, marginal relief

shall be available from surcharge in such a manner that the amount payable as income tax

and surcharge shall not exceed the total amount payable as income-tax on total income of Rs.

1 crore by more than the amount of income that exce

Debit and Credit card new rule

 The Reserve Bank of India (RBI) has made it mandatory for all credit and debit card data used in online, point-of-sale, and in-app transactions to be replaced with unique tokens by September 30 this yea

What is tokenization in RBI?

RBI says “Tokenisation refers to replacement of actual card details with an alternate code called the “token", which shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a ...30-Sept-2022

Tokenisation refers to replacement of actual card details with an alternate code called the “token”, which shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) ...

Cash Transaction New rule

 The government has made new rules regarding cash transactions in the bank or post office. According to the new rules,PAN and Aadhaar will be required for depositing cash of Rs 20 lakh or more in a bank or post office in any one financial year.

KYC and AML

 The objective of KYC/AML/CFT guidelines is  to prevent Bank from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities . KYC procedures also enable the Bank to know/understand the customers and their financial dealings better and manage the risks prudently. means “Know Your Customer”. It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks' services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same.

3 component of Kyc

KYC process includes ID card verification, face verification, document verification such as utility bills as proof of address, and biometric verification.

Banks should frame their KYC policies incorporating the following four key elements:

• Customer Acceptance Policy;
• Customer Identification Procedures;
• Monitoring of Transactions; and.
• Risk Management.
• Banks should frame their KYC policies incorporating the following four key elements:
  • Customer Acceptance Policy;
  • Customer Identification 
  • Risk Management 

  AML
• Acute myeloid leukemia is most common in older adults. Also called acute myelogenous leukemia, acute nonlymphocytic leukemia, AML, and ANLL.
• 
  
• The key 5 pillars of an AML Program are internal controls, a designated BSA officer, ongoing training, independent testing, and customer due diligence (CDD) – the newest pillar. Staying on top of BSA compliance and suspicious act
• There are three stages of money laundering:
• • Placement Stage. Placement is the first stage of money laundering, which involves transferring funds to a legitimate source through financial institutions, casinos, financial instruments, etc. ...
  • Layering Stage. ...
  • Extraction Stage.
  •  AML? Anti-money laundering is comprised of laws and regulations with the aim to prevent fraud. Completing an AML check assists in identifying if illegally obtained funds have been disguised as legitimate income. AML checks are a key element of law firm due diligence processes for new and existing clients.
  •  ensure that your business is following best practices, we have put together the following five-step checklist to help improve your CDD processes.
    1. Step 1: Verify customer identities. ...
    2. Step 2: Assess third-party information sources. ...
    3. Step 3: Secure your information. ...
    4. Step 4: Take any necessary additional measures
    5. The reporting entities supervised by the FMA are listed in Section 130 of the AML/CFT Act. They include:
    6. • issuers of securities.
       • licensed supervisors.
       • derivatives issuers and dealers.
       • DIMS providers.
       • fund managers.
       • client money or property service providers.
       • financial advice providers.
       • equity crowdfunding platforms.

• 
  
• 
  
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• 
  

Circular

 RBI circular?

This Master Circular aims at consolidating all the instructions/guidelines issued by RBI on Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards. The Master Circular has been placed on the RBI website (http://www.rbi.org.in). A list of circulars issued in this regard is given in Annex – III.

Index To RBI Circulars ; RBI/2022-2023/91. DOR.AML.REC.55/14.06.001/2022-23 · RBI/2022-2023/90 A.P. (DIR Series) Circular No.10 ; 13.7.2022 · 11.7.2022

POSITIVE PAY SYSTEM

 Positive Pay System  involves re-confirmation of key details of the check by drawer to the Bank, which would be cross-checked with the presented check at the time of payment processing

Positive Pay System will be  effective for checks with a valuation of more than Rs 50,000 . All account holders issuing checks for sums of Rs 50,000 and above will be able to use it, depending on the banks

As   per concept of Positive Pay System, the issuer of the check submits certain minimum details of that check like Check Number, Check Amount, Check Date, Payee/Beneficiary Name to the drawee bank. Positive Pay System will be available for all account holders issuing checks for amount of  Rs. 50000 and above . 

The Positive Pay System, developed by the National Payments Corporation of India, is a process of reconfirming the key details of large value cheques

The Positive Pay service is usually active within three business days. IMPORTANT:If RICE is selected, immediately upon enrollment, all checks presented for payment will appear as exceptions for you to review and provide a decision.

Positive Pay System enables an additional security layer to the cheque clearing process wherein the issuer (drawer) of the cheque shares cheque details with the Bank

The cost for Positive Pay is $50 per month per account. There is no set up fee and no per item fee

Cheque

  A check is  a document you can issue to your bank, directing it to pay the specified sum mentioned in digits as well as words to the person whose name is borne on the cheque . Checks are also called negotiable instruments

Che

Central Government Act. Section 6 in The Negotiable Instruments Act, 1881.  ¹  [ 6 “Cheque”. — A “cheque” is  a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand  and it includes the electronic image of a truncated check and a check in the electronic form.

Features of a cheque

The amount specified is always certain and should be clearly mentioned both in figures and words. The payee of a cheque is always certain. A cheque is always payable on demand. The cheque should bear a date otherwise it is invalid and shall not be honored by the 1. Bearer Cheque

A bearer check is the one in which the payment is made to the person bearing or carrying the cheque. These checks are transferable by delivery, that is, if you are carrying the check to the bank, you can be issued the payment to. The banks need no other authorization from the issuer to be allowed to make the payment. 

How can you identify a bearer cheque? You know it is a bearer check when you see the words 'or bearer' printed on them. 

2. Order Cheque                                              

In these cheques, the words 'or bearer' are cancelled. Such checks can only be issued to the person whose name is mentioned on the cheque, and the bank will do its background check to authenticate the check bearer's identity before releasing the payment. 

3. Crossed Cheque

You may have observed checks with two sloping parallel lines with the words 'a/c payee' written on the top left. That is a crossed cheque. The lines ensure that irrespective of who presents the cheque, the payment will only be made to the individual whose name is written on the cheque, in other words, the a/c payee along with his/her account number. These checks are relatively safe because they can be encashed only at the drawee's bank. 

4. Open cheque

An open check is basically an uncrossed cheque. This check can be encashed at any bank, and the payment can be made to the person bearing the cheque. This check is transferable from the original payee (the original recipient of the payment) to another payee too. The issuer needs to put his signature on both the front and back of the cheque. 

5. Post-Dated Cheque

These types of checks bear a later date of being encashed. Even if the bearer presents this check to the bank immediately after getting it, the bank will only process the payment on the date mentioned in the cheque. This check stands valid past the mentioned date, but not before. 

6. Stale Cheque

A check past its validity, three months after the date of being issued, is called a stale check. 

7. Traveller's Cheque

Foreigners on vacations carry traveler's checks instead of carrying hard cash, which can be cumbersome. These checks are issued to them by one bank and can be encashed in the form of currency at a bank located in another location or country. Traveller's checks do not expire and can be used for future trips. 

8. Self Check

You can identify self checks by the word 'self' written in the drawee column. Self checks can only be drawn at the issuer's bank. 

9. Banker's Cheque

A bank is the issuer of these types of checks. The bank issues these checks on behalf of an account holder to make a remittance to another person in the same city. Here the specified amount is debited from the account of the customer, and then, the check is issued by the bank. This is the reason banker's checks are called non-negotiable instruments as there is no room for banks to dishonor these cheques. They are valid for three months. They can be revalidated provided specific conditions are met.