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Amendments to sections 42 and 43 of the Black Money Act reinforce resident reporting obligations for foreign assets and income and confirm that failure to disclose may attract a penalty under section 42 or 43. The Finance Bill proposes raising the proviso exemption for low value assets (other than immovable property) so the sections will not apply where the aggregate value of such assets does not exceed a revised threshold, addressing stakeholder concerns that the prior threshold led to penalties disproportionate to asset value.
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Amendments to section 201 and insertion of sub section (7A) in section 206C impose a uniform limitation: no order deeming a person an assessee in default shall be made after six years from the end of the financial year in which payment/credit occurred or tax was collectible, or two years from the end of the financial year in which a correction statement is delivered, whichever is later; effective 1 April 2025.
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Expanded TDS statement processing allows tax board to scheme for processing statements filed by non-deductors.
Amendment expands the scope of Section 200A to permit the Board to make a scheme for processing statements of tax deduction or correction statements filed by persons other than the deductor, addressing filings like exchange-submitted statements where the deductee provides tax details, with effect from the first day of April, 2025.
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Lower deduction certificate extended to transactions under 194Q and 206C(1H) to reduce overlapping withholding and collection burdens.
The proposal amends subsection (1) of section 197 and subsection (9) of section 206C to include the buyer-side withholding provision and the seller-side collection provision within the scope of a lower deduction/collection certificate, allowing taxpayers to seek reduced withholding or collection rates to address blocked funds, refund processes, and overlapping compliance obligations.
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TCS exemption to allow no or lower collection from notified exempt persons, easing compliance for tax exempt entities.
The Central Government is empowered to notify, in the Official Gazette, persons or classes of persons-including institutions, associations or bodies-for whom no TCS shall be collected or for whom TCS shall be collected at a lower rate in respect of specified transactions; this addresses cases where entities with tax-exempt income and no return-filing obligation nonetheless face TCS, and the amendment prescribes a prospective commencement for the relief.
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Time limit for correction statements: limits post filing revisions of TDS/TCS statements, imposing multi year finality to filings.
Imposes a six year cut off for delivering correction statements for TDS and TCS: no correction statement may be delivered after six years from the end of the financial year in which the original statement was delivered, thereby providing finality to TDS/TCS filings and preventing indefinite post filing revisions.
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Penalty for failure to furnish statements: shortened compliance window limits penalty relief after late TDS/TCS filing.
The penalty provision for failure to furnish TDS/TCS statements is amended so that no penalty applies only if, after paying TDS/TCS with fees and interest to the Central Government, the person files the TDS/TCS statement within a shortened compliance period measured from the time prescribed for furnishing such statement.
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Furnishing obligation for liaison offices: late filing draws daily penalty with a capped alternative and reasonable cause defence.
Non-resident liaison offices must furnish an annual statement of activities within a period to be prescribed by Rules. Failure to furnish will attract a penalty of one thousand rupees per day where the default does not exceed three months, and one lakh rupees otherwise, subject to relief if the assessee proves reasonable cause; the amendment is prospective and adjusts penalty provisions in the compliance framework.
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Determination of Arm's Length Price expanded to include unreported specified domestic transactions by the Transfer Pricing Officer.
The amendment enables the Transfer Pricing Officer to determine and compute the Arm's Length Price for specified domestic transactions that were not referred by the Assessing Officer or not disclosed in the taxpayer's transfer pricing audit report, extending to SDTs the existing procedural powers previously available only for international transactions; the change takes effect from 1 April 2025 and applies to the relevant assessment year and subsequent years.
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Aadhaar Enrolment ID discontinuation removes enrolment id use for PAN and returns, requiring affected PAN holders to intimate Aadhaar.
The proviso allowing quoting of an Aadhaar Enrolment ID instead of an Aadhaar number for PAN allotment and income tax returns is proposed to be discontinued effective 1 October 2024 because expanded Aadhaar coverage makes the enrolment ID option a risk for PAN duplication and misuse; persons allotted PAN using an Enrolment ID must intimate their Aadhaar number by a notified date.
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Advance Rulings withdrawal extended for transferred applications, allowing BAR to accept and record withdrawals within specified windows.
Amendments permit withdrawal of applications transferred from the former Authority for Advance Rulings to the Board for Advance Rulings where no order under the relevant provision has been passed, by allowing applicants to apply for withdrawal by 31st October, 2024; the Board may, upon such application, order the transferred application to be rejected as withdrawn on or before 31st December, 2024, with the amendment taking effect from 1st October, 2024.
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Empowerment to refer best judgement assessments back to Assessing Officer with a prescribed time limit for fresh assessment.
The Bill proposes empowering the Commissioner (Appeals) to set aside best judgement assessments made under section 144 and refer the case to the Assessing Officer for a fresh assessment, and proposes a consequential amendment to section 153(3) to prescribe a time limit for disposal of cases so referred; the amendment applies to appellate orders passed on or after the specified commencement.
News Bills
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Penalty for inaccurate reporting clarified to include due diligence failures; reasonable cause defence added under amended provisions.
The amendment specifies that penalty applies where a person furnishing statements under section 285BA either furnishes inaccurate information or fails to comply with prescribed due diligence, to align with the AEOI/CRS framework. It further adds the penalty provision to the scope of section 273B, allowing a reasonable cause defence against imposition of the penalty. The changes are enacted prospectively as provided in the Finance Bill.
News Bills
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Tax clearance certificate requirement now covers Black Money Act liabilities, affecting exit permissions from India.
The amendment adds liabilities under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 to the list of tax statutes whose outstanding liabilities may render it necessary for a person domiciled in India to obtain a tax clearance certificate before leaving the country, while preserving the proviso requiring recorded reasons and prior approval of the Principal Chief Commissioner or Chief Commissioner; the amendment takes effect from 1 October 2024.
News Bills
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Assessment time-limits revised: new deadlines for returns under administrative orders and revived block assessments procedures
Amendments revise time-limits: assessments on returns filed following administrative directions may be completed within twelve months from the end of the financial year of filing; fresh assessments after appellate or supervisory orders will include cases set aside by the Commissioner (Appeals); timelines are specified for revived proceedings following annulment of block assessments; and search-period exclusions are adjusted so the limitation date falls at the end of the month after exclusion. A consequential provision applies return-obligations to returns furnished under administrative orders. Effective from 1 October 2024.
News Bills
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Deductibility under Section 80G updated to specify National Sports Development Fund as eligible recipient; applies prospectively.
Section 80G is amended to specify that donations to the National Sports Development Fund established by the Central Government are deductible in computing total income, replacing the earlier reference to the National Sports Fund; the amendment is prospective and will apply to subsequent assessment years.
News Bills
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Tax provision amendment: removal of National Housing Bank references in income recognition rules for housing finance companies.
Amendment proposes deleting references to the National Housing Bank in section 43D, removing the clause on public companies engaged in housing finance and related explanations that linked recognition of interest income on prescribed bad or doubtful debts to NHB guidelines, and aligning tax text with the regulatory transfer of housing finance companies to the Reserve Bank of India; the amendment is effective from 1 April 2025 and applies to subsequent assessment years.
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Asset recovery: amendment enables liabilities under the Black Money Act to be recovered from seized or requisitioned assets.
The amendment adds a reference to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 to Section 132B of the Income-tax Act, authorising recovery of existing liabilities under the Black Money Act from assets seized or requisitioned under section 132, with prospective effect from the 1st day of October, 2024.
News Bills
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Time limits for responses under benami property procedure extended; provisional attachment decision lengthened and statement referral increased, effective October.
Amendments to section 24 fix procedural timelines: benamidar and beneficial owner must file explanations within three months from the end of the month of notice; the Initiating Officer's period to provisionally attach or decide attachment matters is extended to four months from the end of the month of notice; and the period to prepare and refer the statement of the case to the Adjudicating Authority is increased to one month from the end of the month in which the attachment order is passed.

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Review of Customs duty Exemptions - Review of conditional exemption rates of BCD

24 July, 2024

Contents
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Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

(i) The BCD exemption for the goods covered under following serial numbers of the notification are being extended upto 31st March, 2026 unless specified otherwise.

S. No.

S N of 50/17-Cus

Brief Description

1.

17

Specified Planting materials, namely, oilseeds, seeds of vegetables, tubers, etc.

2.

80A

Algal oil for manufacturing of aquatic feed

3.

90

Lactose for use in manufacture of homeopathic medicines

4.

104

Specified goods used in processing of sea-food

5.

133

Gold ores and concentrates

6.

139

Bunker Fuels namely: (i). IFO 180 CST; (ii). IFO 380 CST; (iii). VLSFO (CTH 27)

7.

150

Naphtha for manufacture of Fertilisers (scope of exemption is being reduced only to Naphtha)

8.

155

Liquefied petroleum gases (LPG) received from unit in SEZ and returned by the DTA unit to the SEZ unit

9.

164

Electrical energy supplied from SEZ unit to DTA

10.

165

Electrical energy supplied from SEZ to DTA

11.

172

Specified goods used in manufacture of silicon wafers or solar wafers, for manufacture of solar cell or module

12.

183

Medical use fission Molybdenum-99 (Mo-99) for use in manufacture of radio pharmaceuticals

13.

184

Pharmaceutical Reference Standard

14.

188

Goods for manufacture of ELISA Kits

15.

191

Maltol for manufacture of deferiprone

16.

204

Anthraquinone or 2-Ethyl Anthraquinone for use in manufacture of Hydrogen peroxide

17.

237

Specified material for manufacture of EVA (Ethylene Vinyl Acetate) sheets or backsheet, which are used in the manufacture of solar photovoltaic cells or modules (Scope of materials which can be imported is being increased)

18.

253

Specified Goods for manufacture of Brushless Direct Current (BLDC) motors

19.

257

Tags, labels, stickers, belts, buttons, hangers or printed bags, imported by bonafide exporters

20.

257A

Specified goods used in manufacture of handicraft items for export when imported by bonafide exporter

21.

257B

Specified goods used in manufacture of textile or leather garments for export when imported by bonafide exporter

22.

257C

Specified goods used in manufacture of leather or synthetic footwear or other leather products for export when imported by bonafide exporter

23.

258

Security fibre, threads, Paper based Taggant, M-feature for use in manufacture of security paper by Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt Ltd, Mysore.

24.

259

Raw materials for manufacture of security fibre and security thread for supply to Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt. Ltd, Mysore for use in manufacture of security paper

25.

260

Goods for the manufacture of specified orthopedic implants (902110)

26.

261

Raw material for manufacture of Copper-T Contraceptive

(i) Alatheon

(ii) Copper Wire

27.

265

Capacitor grades polypropylene granules for manufacture of Capacitor grade plastic

28.

269

Super absorbent polymer for manufacture of adult diapers and specified goods

29.

271

Polytetrametylene ether glycol, (PT MEG) for use in manufacture of spandex yarn

30.

276

Ethylene- propylene- non-conjugated diene rubber (EPDM) for manufacture of insulated wire and cables

31.

279

New or retreated Pneumatic tyres of rubber for use in servicing, repair of maintenance of aircrafts used for operating scheduled air transport service or scheduled air cargo service etc

32.

280

New or retreated Pneumatic tyres of rubber for use in servicing, repair or maintenance of aircraft imported or procured by Aero Club of India/ for flying training purpose/ operating non-scheduled (passenger or charter) services/ AAI for flight calibration purpose

33.

290

Wood pulp for manufacture of newsprint, paper or paperboard

34.

292

Goods imported for manufacture of paper, paper boards, newsprint

35.

293A

Newsprint and uncoated paper imported for printing of newsprint

36.

296A

Lightweight coated paper imported by actual users for printing of magazines

37.

326

Hydrophilic /Hydrophobic Non- Woven, imported for use in the manufacture of Adult Diapers

38.

329

Pile fabrics for the manufacture of toys

39.

333

Moulds, tools and dies, for the manufacture of parts of electronic components or electronic equipment

40.

334

(i) Graphite Felt or Graphite pack for growing silicon ingots (ii) Thin Steel wire used in wire saw for slicing of silicon wafers

41.

345A

Simply Sawn Diamonds

42.

364A

Spent catalyst or ash containing precious metals

43.

368

Ferrous Scrap

44.

374

Magnesium Oxide (MgO) coated cold rolled steel coils for use in manufacture of cold rolled grain oriented (CRGO) steel

45.

375

Specified items for manufacture of cold rolled grain-oriented steel (CRGO) steel

46.

378

Metal parts for manufacture of electrical insulators falling under heading 8546

47.

379

Pipes and tubes for use in manufacture of boilers

48.

380

Forged steel rings for manufacture of special bearings for use in wind operated electricity generators

49.

381

Flat copper wire for use in the manufacture of photo voltaic ribbon for manufacture of solar photovoltaic cell or modules

50.

392

Dies for drawing metal, where imported after repairs from abroad

51.

403

Parts and raw materials for offshore oil exploration

52.

404

Specified items including capital goods and raw materials for off shore oil exploration

53.

415

Parts for manufacture of catalytic convertors

54.

415A

Platinum or Palladium for manufacture of Noble Metal Compounds & Noble Metal Solutions

55.

416

Ceria zirconia compounds for use in the manufacture of washcoat for catalytic converters

56.

417

Cerium compounds for use in the manufacture of washcoat for catalytic converters

57.

418

Zeolite for use in the manufacture of washcoat for catalytic converters

58.

422

Machinery, electrical equipment for use in semiconductor wafer and LCD

59.

423

Machinery, electrical equipment for use in marking and packaging of semiconductor chips

60.

426

Specified goods for the manufacture of semiconductor devices, memory card, IC, solar cell

61.

435

Capital goods for printing industry

62.

442

Bushings made of Platinum and Rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India

63.

446

Parts and components for manufacture of tunnel boring machines

64.

451

Evacuated tubes with three layers of solar selective coating for use in manufacture of solar water heater

65.

462

Ball screws for use in the manufacture of CNC Lathes

66.

463

Linear Motion Guides for use in the manufacture of CNC Lathes

67.

464

CNC Systems for use in the manufacture of CNC Lathes

68.

464A

Goods for manufacture of plastic processing machineries

69.

467

Parts and components of cash dispenser or automatic bank note dispenser

70.

468

Parts for manufacture of Micro ATM, Fingerprint reader/scanner, Iris scanner, Miniaturised POS (Scope of exemption is being limited to import of raw materials only)

71.

471

All parts for use in the manufacture of LED lights

72.

472

All inputs for use in the manufacture of LED driver or MCPCB for LED lights

73.

476

Television equipment, cameras etc for taking films, imported by a foreign film unit or television team

74.

477

Filming equipment of foreign origin if imported into India after having been exported therefrom.

75.

480

Goods imported for being tested in specified test centers

76.

489B

Goods for manufacturing of Microphones

77.

504

Parts and Components of Digital Still Image Video Cameras

78.

509

Parts, components and accessories for manufacture of Digital Video Recorder

79.

510

 Parts, components and accessories for use in manufacture of reception apparatus for television

80.

511

Parts, components and accessories for manufacture of CCTV Camera

81.

512

Specified Parts, components and for use in manufacture of Lithium-ion battery and battery pack

82.

512A

Inputs, parts or sub-parts for use in the manufacturing of Printed Circuit Board Assembly

83.

515A

Open Cell for manufacture of TV Panel

84.

516

The following goods for use in the manufacture of Liquid Crystal Display (LCD) /LED TV Panel

85.

517

Magnetrons for manufacture of domestic microwave ovens

86.

519

Raw materials or parts for use in manufacture of e-Readers

87.

523A

Parts, sub-parts, inputs or raw material for use in manufacture of Lithium-ion cells

88.

527

Lithium-ion cell use in manufacture of battery or battery pack

89.

527A

Lithium-Ion Cell for use in manufacture of battery or battery pack of cellular mobile

90.

527B

Lithium-Ion Cell manufacture of battery or battery pack of EV

91.

534

Parts of gliders or simulators of aircrafts (excluding rubber tyres and tubes of gliders)

92.

535

Raw materials for manufacture of aircraft and parts of aircraft

93.

535A

Parts of aircraft for manufacture of aircraft or for manufacture of parts of aircraft by PSU under Min of Defence

94.

536

Parts, testing equipment, tools and tool-kits for maintenance, repair, and overhauling of aircraft, components or parts of aircrafts

95.

537

All goods of Heading 8802 (except 88026000-spacecraft)

96.

538

Components or parts, including engines, of aircraft of heading 8802

97.

539

(a) Satellites and payloads; (b) Ground equipment brought for testing of (a)

98.

539A

Scientific and technical instruments etc for launch vehicles and satellites

99.

540

Specified goods imported by scheduled air transporter

100.

542

Specified goods imported by Aero Club, Flying Training Institutes

101.

543

Specified goods imported by non-scheduled air transporter

102.

544

Parts (other than rubber tubes), of aircraft of heading 8802

103.

546

Parts (other than rubber tubes), of aircraft of heading 8802

104.

548

Barges or pontoons imported along with ships

105.

551

Cruise ships, Excursion ships

106.

553

Fishing vessels, Tugs and Pusher crafts, light vessels excluding vessels and floating structure imported for break up

107.

555

Vessels like warships, lifeboats excluding vessels and floating structure imported for break up

108.

567

Stainless steel tube and wire, for manufacture of Coronary stents /artificial valve

109.

569

Parts required for manufacture of Ostomy products

110.

570

Medical and surgical instruments, apparatus and appliances including spare parts and accessories thereof

111.

575

Specified Hospital Equipment for use in specified hospitals

112.

578A

Raw materials, for the manufacture of Cochlear Implants

113.

580

X-Ray Baggage Inspection Systems and parts thereof

114.

581

Portable X-ray machine / system

115.

583

Parts and cases of braille watches, for the manufacture of Braille watches

116.

591

Parts of electronic toys

117.

593

Parts of video games for the manufacture of video games

Note: Description of entries is indicative. Notification may be referred to for complete description.

(ii) The BCD exemption for the goods covered under following serial numbers of the notification no 50/2017-Customs is being extended upto 31st March 2029.

S. No.

S. No. of 50/2017Cus

Brief Description

1.

212A

Medicines/drugs/vaccines supplied free by United  Nations International Children's Emergency Fund (UNICEF), Red Cross etc

2.

213

Drugs and materials

3.

428

Specified goods imported by accredited press cameraman

4.

429

Specified goods, imported by accredited journalist

5.

549

Capital goods, raw materials and spares for repairs of ocean-going vessels

6.

550

Spare parts and consumables for repairs of ocean going vessels registered in India.

7.

577

Lifesaving medical equipment for personal use

8.

607

Life Saving drugs like Keytruda etc

9.

607A

Lifesaving drugs/medicines for personal use

10.

611

Archaeological artefacts for exhibition in a museum

11.

612

Specified raw material for sports goods

Note: Description of entries is indicative. Notification may be referred to for complete description.


Full Text:

Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

Topics

Acts Income Tax