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Act Rules Bills
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Recovery of ancillary tax liabilities: non tax sums become recoverable using the same arrears procedures and enforcement tools.
Clause 419 provides that any sum imposed by way of interest, fine, penalty, or any other sum payable under the Act shall be recoverable in the manner provided in this Part for the recovery of arrears of tax, thereby subjecting ancillary monetary liabilities to the same procedural recovery tools as tax arrears.
Act Rules Bills
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Mutual tax recovery enables cross-border enforcement by domestic authorities acting on foreign tax collection requests under treaty terms.
Clause 418 creates a mutual tax recovery framework under international agreements: foreign authorities may send a certificate to the central tax board to be executed by the Tax Recovery Officer against residents or property in India in the same manner as domestic tax arrears, with recovered sums remitted net of expenses; conversely, the TRO may forward domestic recovery certificates to the Board for action abroad when the assessee is a foreign resident or has foreign property, with the Board acting pursuant to the terms of the relevant agreement.
Act Rules Bills
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Recovery through State Government: central income tax may be collected with local taxes when entrusted, expanding local enforcement.
Recovery through State Government permits State Governments, upon entrustment under Article 258(1), to direct that central income tax be recovered in specified areas with, and as an addition to, municipal taxes or local rates by the same person and in the same manner as local taxes, creating a legal mechanism to integrate central tax enforcement into local recovery machinery while raising concerns about procedural safeguards, accounting, and dispute-resolution.
Act Rules Bills
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Third-party recovery enabling garnishee notices and conversion of non-compliant payers into defaulters for tax arrears enforcement.
Clause 416 empowers the Assessing Officer and the Tax Recovery Officer to use alternative recovery modes pre- and post-certificate, including recovery from salary with statutory protection for exempt portions, a comprehensive third-party recovery regime through notices to debtors or asset holders (including joint holders, objection and indemnity mechanisms, discharge on compliance, and conversion of non-compliant recipients into assessees in default), court-application for funds held in judicial custody, and distraint and sale of movable property subject to prescribed manner and supervisory approval.
Act Rules Bills
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Stay of tax recovery: TRO must pause enforcement and amend or cancel certificates to reflect appellate reductions.
Clause 415 requires the Tax Recovery Officer to grant time for payment and automatically stay recovery during that period; when a demand is reduced on appeal or other proceeding the TRO must stay recovery to the extent of the reduction while further proceedings are pending and must amend or cancel the recovery certificate once the reduction is final, establishing a mandatory, real-time mechanism to align enforcement with appellate outcomes and protect taxpayers from unjust recovery.
Act Rules Bills
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Finality of tax recovery certificates: TRO may cancel or correct certificates while assessees are barred from challenging them.
Clause 413(4) empowers the Tax Recovery Officer to cancel a recovery certificate "if, for any reason, he considers it necessary so to do" and to correct "any clerical or arithmetical mistake"; Clause 413 as a whole bars the assessee from disputing the certificate's correctness at the recovery stage, while the correction power is limited to mechanical errors and procedural safeguards such as notice or recorded reasons are not specified.
Act Rules Bills
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Tax Recovery Officer jurisdiction clarified: transferable recovery certificates enable inter jurisdictional enforcement subject to prescribed certification.
Clause 414 sets the rule for which Tax Recovery Officer may effect recovery: the TRO where the assessee carries on business or has a principal place of business, and the TRO where the assessee resides or any of the assessee's movable or immovable property is situated. It permits transfer of recovery certificates between TROs when assets span jurisdictions or recovery cannot be effected locally, authorises the receiving TRO to act as if the certificate were its own, and requires certification in the prescribed form to ensure procedural integrity.
Act Rules Bills
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Tax recovery certificate empowers administrative enforcement and bars collateral challenges to expedite arrears collection.
Clause 413 empowers the Tax Recovery Officer to draw up a prescribed-form certificate under signature specifying arrears and to initiate recovery by attachment and sale of movable and immovable property, arrest, or appointment of a receiver. It permits parallel recovery proceedings, allows administrative cancellation or correction of certificates, and bars the assessee from disputing the correctness of the certificate at the recovery stage. Clause 413 expands recoverable property to include certain intra-family transfers made without adequate consideration from 1 June 1973, preserving liability for arrears predating a minor transferee's majority.
Act Rules Bills
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Penalty for tax default: discretionary but capped enforcement with mandatory hearing and refund if liability is set aside.
An assessee defaulting on tax payment is liable to a discretionary penalty in addition to arrears and interest, with the Assessing Officer empowered to impose successive penalties for continuing default. Aggregate penalties are capped at the amount of tax in arrears. Procedural safeguards mandate a reasonable opportunity of being heard and exemption where good and sufficient reasons are shown. Payment of tax before penalty does not extinguish liability, but penalty is cancelled and refunded if the tax liability is finally reduced to nil.
Act Rules Bills
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Tax default and recovery: rules on payment timelines, interest adjustment, waiver procedures, and deferment during appeals.
Clause 411 sets the conditions for payment of tax on a notice of demand, the deemed default trigger for coercive recovery, and AO powers to shorten payment periods, extend time or allow instalments. It prescribes interest on unpaid demands with adjustment where liabilities change, prevents overlapping interest charges, allows time bound waiver or reduction of interest for hardship with a hearing requirement, permits deferment of default treatment during appeals on conditions, and protects remittance restricted foreign income from being treated as default.
Act Rules Bills
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Advance tax credit ensures payments are applied to the relevant tax year and credited in regular assessment.
Sums paid or recovered as advance tax, excluding penalty and interest, shall be treated as payment of tax for the income of the tax year in which payable, and credit for such advance tax must be given to the assessee in the regular assessment; the clause covers voluntary payments and recoveries and ties credit to the relevant tax year, while procedural mechanisms, definition of tax year, and treatment on reassessment are left to subordinate rules.
Act Rules Bills
Show AI Summary
Advance tax default: three independent triggers establish deemed default and activate statutory consequences for noncompliance.
Clause 409 deems a taxpayer in default for advance tax where the taxpayer fails to: pay an instalment specified by an Assessing Officer by the due date; send an intimation of revised liability to the Assessing Officer by the date an unpaid instalment becomes due; or pay advance tax based on the taxpayer's own estimate of current income. The clause frames these three independent triggers as grounds for deeming default, thereby activating statutory consequences such as interest, penalties, and recovery measures.
Act Rules Bills
Show AI Summary
Advance tax instalment schedule: staged payments and a single-instalment rule for presumptive taxpayers streamline compliance and revenue flow.
Clause 408 requires assessees to pay advance tax in staged instalments during the tax year, with progressive minimum thresholds and specified due dates, and treats amounts paid on or before the last day of the tax year as advance tax. It provides a single-instalment exception for presumptive taxpayers and cross-references the statutory computation provision for determining current income, while updating terminology and certain cross-references that will require harmonisation with other provisions.
Act Rules Bills
Show AI Summary
Advance tax orders: AO may require payment based on the higher of assessed or returned income, with taxpayer estimation rights.
Clause 407 authorises the Assessing Officer to order advance tax from persons already assessed, specifying a specified sum-the higher of the latest assessed income or subsequently returned income-and an instalment schedule, with such orders and any amendments requiring accompanying notices of demand and adherence to prescribed timing and procedural safeguards.
Act Rules Bills
Show AI Summary
Advance tax self assessment: Bill emphasizes taxpayer initiated instalments and mid year revision, shifting reliance onto voluntary compliance.
Clause 406 requires every person liable to pay advance tax to self assess and remit instalments based on the specified sum, defined as the assessee's estimate of current income, calculated by the cross referenced methodology and paid by statutory due dates; taxpayers may increase or reduce subsequent instalments to accord with revised estimates, while the clause itself does not set out administrative order powers.
Act Rules Bills
Show AI Summary
Advance tax computation: formula-based method clarifies net tax after TDS/TCS credits and tightens credit conditions.
Clause 405 adopts a formulaic computation of advance tax: A = B - C, where B is tax on the "specified sum" and C is TDS/TCS deductible only if the income is included in the specified sum and the deductor/collector has actually credited/paid or received/debited the income post deduction/collection. Net agricultural income is included by reference to assessing officer orders or the assessee's estimate as applicable. The clause modernises drafting and omits the prior HUF specific provision, raising potential gaps.
Act Rules Bills
Show AI Summary
Advance tax liability retained; payable during the tax year when computed tax meets the statutory threshold, preserving continuity.
Clause 404 requires payment of advance tax during the tax year when the amount of tax "as computed under this Part" for that year reaches the statutory threshold, linking liability to the year of income accrual, incorporating deductions, exemptions and set offs in computation, and using the threshold to exclude small liabilities from procedural advance payments.
Act Rules Bills
Show AI Summary
Advance tax liability clarified: pay tax on current income during the tax year, with a narrow senior citizen exemption.
Clause 403 requires payment of advance tax during the tax year on an assessee's current income, defined as the total income chargeable to tax for that tax year, and exempts resident individuals aged sixty or above who have no income under "Profits and gains of business or profession." The provision replaces earlier temporal terms with "tax year" and references mechanisms within "this Part," indicating structural reorganization and necessitating clear definitions and transitional guidance.
Act Rules Bills
Show AI Summary
PAN non compliance increases withholding and collection rates and invalidates declarations, expanding PAN obligations to both TDS and TCS.
Clause 397(2) mandates furnishing and quoting of PAN by deductees and collectees, invalidates certain declarations and applications where PAN is absent, and requires deductors/collectors to apply prescribed higher rates of TDS and TCS in the absence of PAN. The clause covers both TDS and TCS, provides exemptions for specified non resident scenarios and specified payments, caps TDS on certain rent payments at the last month's rent, and emphasizes comprehensive documentation and reporting obligations to enhance traceability and enforcement.
Act Rules Bills
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Centralized processing of withholding statements enables automated determination and intimation of amounts payable or refundable.
Centralized processing creates an automated, unified mechanism for TDS and TCS statements, including correction statements, requiring rectification of arithmetical errors and apparent incorrect claims, computation of interest and fees on adjusted amounts, adjustment against prior payments, issuance of an intimation within one year from the end of the tax year, and grant of refunds; the Board may establish a centralized processing scheme and must address interpretive gaps such as the undefined scope of "incorrect claim apparent" and the tax year/financial year distinction.

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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