INCOME TAX SLABS FOR 2023 -24 IN INDIA

The income tax calculator gives a comparison to an individual about the income tax paid in two financial years. Currently, the income tax calculator is showing income tax liability in current financial year 2022-23, ending on March 31, 2023 and next financial year 2023-24 (between April 1, 2023 and March 31, 2024). The income tax calculator compares the income tax liability in the new tax regime and income tax liability in the old tax regime in two financial years. The key changes announced under the new tax regime are: The income tax slabs has been revised from 6 to 5 under the new tax regime Basic exemption limit hiked to Rs 3 lakh from Rs 2.5 lakh under the new tax regime Standard deduction introduced for salaried individuals, pensioners under the new tax regime Highest surcharge rate reduced to 25% from 37% under the new tax regime Rebate under Section 87A increased to taxable income of Rs 7 lakh under the new tax regime from Rs 5 lakh earlier. This would mean that from FY 2023-24, individuals having taxable incomes up to Rs 7 lakh and opting for the new tax regime will effectively pay zero taxes The new tax regime would be the default option for taxpayers. However, an individual can choose to opt for the old tax regime. Revised Income tax slabs under the new tax regime for FY 2023-24 Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6 lakh to Rs 9 lakh 10% Rs 9 lakh to Rs 12 lakh 15% Rs 12 lakh to Rs 15 lakh 20% Income above Rs 15 lakh 30% *Cess at the rate of 4% will be added to the income tax amount *Surcharge will be applicable on taxable incomes above Rs 50 lakh The new income tax slabs under the new tax regime will be applicable from April 1, 2023, for FY 2023-24. So, in April, when you submit the investment declarations to your employer for calculation of taxes on salary for FY 2023-24, your employer will assume that you have opted for the new tax regime unless you specify otherwise. The new income tax slabs under the new tax regime will be applicable for the incomes earned between April 1, 2023 and March 31, 2024. While filing income tax return for FY 2023-24 (AY 2024-25), the new income tax slabs under new tax regime will be used. The last date to file income tax returns for individuals whose accounts are not audited is July 31, 2024. If you specifically opt for old tax regime for next financial year i.e., FY 2023-24, then there is no change in the income tax slabs and rates. The income tax slabs for FY 2023-24 is same as FY 2022-23 under the old tax regime. Thus, if you are opting for old tax regime in next financial year, then income tax calculation will be done on the same income tax rates. From April 1, 2023, individual will have to specifically opt for the old tax regime because new tax regime has become the default tax regime. If you want to opt for old tax regime, then you will have to ensure that your income tax return is filed on or before the deadline. The income tax calculator takes into account various tax exemptions and deductions that you are eligible for under the old as well as new tax regime. The online income tax calculator tax into account standard deduction of Rs 50,000 from salary income, tax exemption on house rent allowance, Section 80C, Section 80D, Section 80TTA and other deductions that you are eligible for. All the deductions that you are eligible for under both the tax regimes are considered by income tax calculator to calculate income tax liability. Income tax slabs for current financial year 2022-23 Income tax slabs under the old tax regime depends on the age of an individual. For individuals below 60 years of age, the basic exemption limit is Rs 2.5 lakh for FY 2022-23 and FY 2023-24. Income tax slabs for individuals under old tax regime Income tax slabs (In Rs) Income tax rate (%) From 0 to 2,50,000 0% From 2,50,001 to 5,00,000 5% From 5,00,001 to 10,00,000 20% From 10,00,001 30% For senior citizens, aged 60 years and above but below 80 years, the basic exemption limit is Rs 3 lakh for FY 2022-23 and FY 2023-24. Income tax slabs for senior citizens under old tax regime Income tax slabs (In Rs) Income tax rate (%) From 0 to 3,00,000 0% From 3,00,001 to 5,00,000 5% From 5,00,001 to 10,00,000 20% From 10,00,001 30% For super senior citizens, aged 80 years and above, the basic exemption limit is Rs 5 lakh for FY 2022-23 and FY 2023-24 Income tax slabs for senior citizens under old tax regime Income tax slabs (In Rs) Income tax rate (%) From 0 to 5,00,000 0% From 5,00,001 to 10,00,000 20% From 10,00,001 30% Cess will be applicable at 4% on the income tax payable for FY 2022-23 and FY 2023-24. Further, surcharge will be applicable on taxable incomes above Rs 50 lakh. A rebate under Section 87A will be available in both the tax regimes for taxable incomes up to Rs 5 lakh for FY 2022-23. FAQs: Is standard deduction available under new tax regime? Yes, standard deduction is available under new tax regime. However, this deduction is available on salary income from FY 2023-24 for incomes earned between April 1, 2023 and March 31, 2024. Can family pensioner claim standard deduction under new tax regime? Yes, a family pensioner can claim standard deduction of Rs 15,000 under new tax regime. This standard deduction will be allowed from financial year 2023-24 What are the deductions that can be claimed under new tax regime? For current FY 2022-23, deduction under Section 80CCD (2) can be claimed under the new tax regime. From next financial year 2023-24, standard deduction of Rs 50,000 from salary income and deduction under section 80CCD (2) under new tax regime are allowed. Budget 2023 Announcements: Income Tax Slabs for FY 2023-24 in India The finance minister Nirmala Sitharaman announced some major changes in taxes for individual in her Budget 2023. The main highlight was the increase in the taxable income limit from Rs 5 lakhs to Rs 7 lakhs for availaing rebate u/s 87A. Thus, an individual with taxable income upto Rs 7 lakhs would now pay zero tax under the new tax regime. Another key highlight was the revision in the tax slabs for those opting the new tax regime. The budget also catered to the needs of the super rich and the surcharge rates were dropped from 37% to 25% for those having taxable income exceeding Rs 5 cr. The FY 2023-24 will start from April 1, 2023. The FM also mentioned that the new tax regime will be the default choice for each individual and one will have to opt for old tax regime explicitly. Those under the old tax regime will continue to avail deductions/tax exemptions such section 80C, 80D deductions, HRA, LTA tax exemptions etc. without any changes in tax rates.The new tax regime offers lower tax rates, but split across slabs as compared to the old tax regime. Another thing to keep in mind is that under the old income tax regime, basic tax exemption limit for an individual taxpayer depends on their age and residential status. However, in the new tax regime, the basic exemption limit is Rs 2.5 lakh in a financial year. Revised Tax Slabs under New Tax Regime Income tax slabs (In Rs) Income tax rate (%) From 0 to 3,00,000 0 From 3,00,001 to 6,00,000 5% From 6,00,001 to 9,00,000 10% From 9,00,001 to 12,00,000 15% From 12,00,001 to 15,00,000 20% From 15,00,001 30%

DELAY ANALYSIS IN CONSTRUCTION CONTRACTS

Delay notices are an important part of construction contracts because they help to ensure that all parties are aware of any delays that may occur during the course of a project. This information can be crucial for ensuring that the project stays on track and that any necessary adjustments are made in a timely manner. Delay notices are an important tool for managing and mitigating potential delays in construction projects. Per the FIDIC Silver Book, the below is the timeline from the time the Notice of Delay is issued: 1. Notice of delay: The contractor must notify the employer in writing within 14 days of becoming aware of any delay to the works. 2. Extension of time: If the contractor believes that they are entitled to an extension of time due to the delay, they must notify the employer in writing within 28 days of becoming aware of the delay. 3. Reasons for delay: The contractor must provide detailed reasons for the delay, including any mitigating circumstances and any actions taken to minimize the impact of the delay. 4. Documentation: The contractor must provide supporting documentation, such as reports from the project team, to support their claim for an EOT. 5. Claim for loss and expense: If the delay has resulted in additional costs for the contractor, they may make a claim for loss and expense in accordance with the terms of the contract. 6. Time for review: The employer must review the contractor's notice of delay and extension of time claim within 28 days of receiving it. 7. Decision on extension of time: The employer must notify the contractor in writing of their decision on the extension of time claim within 14 days of completing their review. 8. Payment: If the extension of time is granted, the contractor is entitled to payment for any additional costs incurred as a result of the delay. Note that no Automatic entitlement exists. The Main Causes of rejection of Rejection of the Delay notices are also summarised below: 1. Non-compliance with the contract terms and conditions 2. Failure to submit a valid claim within the specified time frame 3. Lack of supporting documentation for the claim 4. Unreasonable or excessive delay in carrying out the work 5. Failure to provide adequate notice of delay or disruption to the employer 6. Failure to take appropriate remedial measures to avoid or mitigate the delay 7. Failure to cooperate with the employer or other contractors in addressing the delay 8. Failure to provide a realistic and achievable schedule for completion of the work. If correctly applied, delay notices can help to protect the rights and interests of all parties involved in the project by clearly outlining the causes of the delay and any potential remedies that may be available. Concurrent Delay Analysis Concurrent delay analysis is the process of determining whether delays to a construction project are due to multiple causes, and apportioning responsibility for those delays among the parties involved. This process is often used in disputes under FIDIC (International Federation of Consulting Engineers) contract terms, where there is a dispute over whether delays were caused by the employer, the contractor, or a combination of both. The main problems associated with concurrent delay analysis under FIDIC/Bespoke contract terms are: 1. Determining causation: In order to apportion responsibility for delays, it is necessary to determine the cause(s) of the delay. This can be challenging, especially when there are multiple causes of delay, or when the cause is not immediately apparent. 2. Identifying the responsible party: Once the cause(s) of the delay have been determined, it is necessary to identify which party is responsible for the delay. This can be difficult, especially when the delay is due to multiple causes, or when the cause is not clearly the fault of a specific party. 3. Apportioning responsibility: Even when the cause of the delay and the responsible party have been identified, apportioning responsibility for the delay can be complex and contentious. This is particularly true when the delay is due to multiple causes, or when the cause is not clearly the fault of a specific party. 4. Dispute resolution: Disputes over concurrent delay analysis can be difficult to resolve, particularly when the parties involved do not agree on the cause(s) of the delay, the responsible party, or the apportionment of responsibility. This can lead to lengthy and costly disputes, which can significantly impact the overall success of the construction project. How to avoid problems in concurrent delays: 1. Clearly define the contract terms and conditions, including the roles and responsibilities of all parties involved in the project. 2. Establish a clear communication and reporting system to ensure timely and accurate information is shared between all parties. Implement a risk management plan to identify and mitigate potential delays and disruptions. 3. Use a project scheduling software to monitor the progress of the project and identify potential delays in real-time. 4. Engage independent experts, such as quantity surveyors, to assess and validate any claims for concurrent delays. 5. Conduct regular meetings and progress reviews to ensure that all parties are working towards the same goals and objectives. 6. Use alternative dispute resolution methods, such as mediation or arbitration, to resolve any disputes or conflicts that may arise. 7. Take proactive steps to prevent concurrent delays, such as engaging subcontractors early on in the project and setting realistic timelines for completion.