Taxation of dividends shifted to recipients, reviving TDS and restructuring related compliance obligations. The Finance Act, 2002 extensively amends direct tax law: it revises rate structures and surcharge mechanics, withdraws and narrows numerous exemptions, clarifies the definition of person, brings casual receipts within the tax net, tightens capital gains valuation for immovable property, refines transfer pricing rules (including a Transfer Pricing Officer mechanism and price tolerance), introduces additional depreciation incentives, reworks MAT and shipping relief, strengthens search and seizure and electronic records access (with penal sanctions), revives and expands TDS obligations (including on dividends and mutual fund distributions), and modifies compliance, assessment and penalty procedures with detailed effective date and transitional provisions.