Income-tax rates, surcharge and procedural reforms updated including block assessment rules and Vivad Se Vishwas scheme.
The Act prescribes income tax rates and graduated surcharges for assessment year 2024 25, adds a 4% Health and Education Cess, revises capital gains tax and withholding rates with date specific rates, inserts a cruise ship profit provision (section 44BBC), reduces multiple TDS/TCS rates, incorporates IFSC regulatory references, and replaces sections 148/148A with a pre notice show cause procedure. It creates a new Chapter XIV B for block assessments following search or requisition, sets computation, filing, timeline, interest and penalty rules, and establishes the Direct Tax Vivad Se Vishwas Scheme, 2024 with specified settlement percentages.

Income-tax rates and surcharge changes, new search-based block assessment procedure, and targeted direct tax amendments.
The Bill prescribes income-tax slab rates and detailed surcharge schedules for diverse taxpayer classes, imposes a 4% Health and Education Cess on tax plus surcharge, and harmonises deduction/collection/advance tax rates with these rates. It also inserts targeted withholding provisions, adjusts TDS/TCS percentages and thresholds, and sets surcharge caps for certain dividend and specified-fund incomes.