Budget: Exempt entities like non-profits face hurdles due to TCS on transactions. Govt can notify exemptions/lower TCS rates for them. Effective Oct '...
Budget: Amendments clarify penalties for inaccurate info/non-compliance with due diligence under AEoI. Rs. 50K fine for errors/failures. Defense allow...
Income Tax: Tax on distributed income of domestic company for buy-back of shares to be treated as dividend in hands of shareholders. Cost of acquisition of shares bought back to generate capital loss for shareholders, allowing set-off against subsequent capital gains. Deeming value of consideration for bought back shares as nil for computing capital loss. Amendments effective from October 1, 2024 for any buy-back on or after that date. Aims to widen tax base and prevent avoidance by aligning treatment of dividends and buybacks.
Income Tax: Tax on distributed income of domestic company for buy-back of shares to be treated as dividend in hands of shareholders. Cost of acquisition of shares bought back to generate capital loss for shareholders, allowing set-off against subsequent capital gains. Deeming value of consideration for bought back shares as nil for computing capital loss. Amendments effective from October 1, 2024 for any buy-back on or after that date. Aims to widen tax base and prevent avoidance by aligning treatment of dividends and buybacks.
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