Government Proposes to Abolish 6% Equalisation Levy on Online Ads Through Finance Bill 2025 Amendments

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....The government has proposed to abolish the 6% Equalisation Levy on online advertisements through amendments to the Finance Bill 2025 introduced in the Lok Sabha. This move follows last year's removal of the 2% Equalisation Levy on e-commerce transactions. The decision appears strategically timed to demonstrate an accommodative stance toward the US, which had threatened reciprocal tariffs beginning April 2. The abolition aims to address international concerns about the unilateral nature of the levy while providing greater certainty to taxpayers. Additional amendments include modifications to offshore fund investment requirements and clarifications regarding tax assessments under search and seizure provisions, specifically introducing the term "Total Undisclosed Income" to better define the scope of such proceedings.....