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IT rules in AY 2023-24

15 June 2023

I am a resident Indian senior citizen.

I earned income only from Govt pension and bank fd interest and nothing else in FY 2022-23.

I did not invest anything u/s 80C during the year, but paid about Rs.26000/-for National Senior Citizen Mediclaim Policy.

My total income during the year will be about 12/13 lakh.

Am I entitled to any deductions under new tax regime in AY 2023-24 ?

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 15 June 2023

No, not even Mediclaim u/s. 80D.

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B Durga Prasad (Student) (175 Points)
Replied 15 June 2023

As a resident Indian senior citizen, if you earned income only from government pension and bank FD interest in FY 2022-23, and did not make any investments under Section 80C, you may not be eligible for any deductions under the new tax regime. The deductions under Section 80C are not available in the new tax regime.

To learn more about Income Tax Guide 2023 click here
For more detailed information, visit Swipe Blogs.

Amit Kumar Das (Retd) (236 Points)
Replied 16 June 2023

Thank you very much for your quick response which you do always.

But, I have another query in pursuance of your response.

Am I not entitled to even standard deduction and some amount from fixed deposit interest?

Kindly, spare a moment to answer.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 16 June 2023

For AY 2023-24 (i.e for FY 2022-23) standard deduction is not available under New tax regime.

Even Deduction under sec. 80TTB cannot be claimed under new tax regime.

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Amit Kumar Das (Retd) (236 Points)
Replied 22 June 2023

Thank you once again for clarification.

If you give consent, may I request you for clarification of a completely different topic which I believe CAs are conversant with.

It is about Balance sheet of a very small Co-operative Housing Society with which I am facing difficulty.

I will post it after you permit.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 22 June 2023

As the societies have their own auditors, who would not like interference from others in their style of working. So cooperate them and get solutions from their end.

Amit Kumar Das (Retd) (236 Points)
Replied 22 June 2023

Situation is quite different in our case. It is a very small Housing Co-operative Society consisting of only 8 members all retired government officers. It is like a senior citizens' home.

We do not have any auditor.

We ourselves keep the books of accounts. Each year Co-operative department of Govt of West Bengal send an auditor to audit accounts of the Society.

This year we are facing some problems which are very simple I believe to a professional, but we (particularly I being secretary of the Society) can not sort out.

I just want answer to a simple question which will be clear to you if you go through the descripttion below.

May I seek your help?

This year's auditor will come soon. Before that I will have to keep everything ready.

"Ours is a very small registered CHS consisting of 8 members who live in 8 flats with family. All the members are retired government officers. We prepare accounts of the Society ourselves without any professional help as it is very simple without any complex matter. Every year an auditor is sent by state government Co-operative department to audit accounts according to Co-operative Act of West Bengal government. The land on which the building stands was allotted to the Society by the state government some 25 years ago. Members contributed to the Society at that time for construction of the building.

Fixed assets of the Society are the following items:

Building
Land
A Lift and

4.some furniture

Current assets are

Cash in hand
Cash in Bank saving account
Fixed deposits

Total asset is sum total of fixed and current assets on the last day of each FY, i,e, 31st March

(Note: We do not take into account depreciation of the fixed assets like building, lift and furniture because their value will become nil after so many years if formula for depreciation is applied.

Land, of course does not depreciate, it appreciates)

Liabilities are the following items:

Issued and paid up share capital
Members' deposit for construction of the building 25 years ago 3. Arrear audit fee and
Accumulated surplus from income over expenditure over the years (Income exceeds expenditure almost every year)

Source of income are

members' monthly fixed amount of maintenance charge for running the Society
SB interest
Sale proceeds of old discarded items like plumbing materials occasionally

Expenditures are

Wages of security and sweeper
Electricity charges

3.Minor repairs

4.Miscellaneous purchases

5.Audit fee

We maintain A cash book, ledgers, voucher register etc.

We prepare for audit the following accounts

Cash account
Income-expenditure account and
Balance sheet

Now, my query is whether total assets should be equal to total liabilities every year in balance sheet?

Is it not possible that assets exceed liabilities in some years ? If so, how and where to show it?"

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178226 Points)
Replied 23 June 2023

1. Yes, that is why it is called BALANCE Sheet.

2. Assets cannot exceed liabilities. Generally, the mistake happens in categorizing revenue and capital expenditures. If you have sold any asset, the amount should be credited to the asset itself and not to any income. & vice versa.

3. Claiming Depreciation over fixed asset is noy only mandatory, but it helps in acquiring new assets when the original asset's life is over,

4. We have many such small welfare societies, we advise them to post their entries in tally software. It takes hardly a day to understand its features. Once set on it, it helps save time to these members and easy for any accountant to verify any such mistake.

Amit Kumar Das (Retd) (236 Points)
Replied 23 June 2023

Thank you sir once again.

1. Para-2 of your answer, I understand assets cannot exceed liabilities in any year.

But, Could it be otherwise, i.e., liabilities > assets in any year?

2. As selling of assets is concerned , during the last couple of years we replaced old plumbing GI pipes of this 25 yrs old building with new PVC pipes and sold the discarded pipes to kachrawalas earning some money.

We had treated the amount as income and was entered in cash book as receipt.

If we now correct cash book, income over expenditure will be less. As it is shown as liability in Balance sheet, total liability will decrease.

Should we do it before presenting the account to govt audit

Am I correct?

3. How we can acquire tally software?

My regards to you.