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    Act Rules Bills
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Mineral classification determines tax incentive eligibility for prospecting and extraction, preserving continuity but requiring clearer definitions.
Statutory classification of minerals determines which mineral activities qualify for tax incentives under income tax law by listing specified minerals and associated groups; SCHEDULE XII (2025) reproduces SCHEDULE 07 (1961) verbatim in substance, enumerating 27 minerals and 16 associated groups as the determinative reference for eligibility of capital expenditure on prospecting, extraction and processing, while leaving interpretive issues (broad terms, technical thresholds, typographical inconsistencies) that may require periodic review and clearer definitions.
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Recognised Provident Fund rules modernised, clarifying recognition conditions, tax treatment of contributions, portability, and trustee obligations.
The Schedule modernises the framework governing Recognised Provident Funds, approved superannuation and gratuity funds by restating recognition and approval conditions (employment location, fixed contribution structure, irrevocable trust, permitted assets), procedures for recognition or withdrawal, trustee recordkeeping and appeals, and explicit tax rules: taxable employer contributions above prescribed rates and excess interest, deductibility of employee contributions, exclusion of accumulated balances only upon meeting service-duration or contingency conditions or permitted transfers, retroactive taxation where conditions fail, and mandatory tax deduction at source.
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Insurance business taxation: updated rules tie taxable profits to actuarial surplus and reorganized disallowance cross-references.
Schedule-XIV requires separate computation of life insurance profits by annual averaging of actuarial surplus/deficit from the last inter-valuation period, with add-backs of inadmissible expenditures under the reorganized disallowance provisions; it updates crediting rules for tax paid during multi-year valuation periods, prescribes profit computation and specified add-backs and deductions for other insurance business (including treatment of investment gains/losses and reserves for unexpired risks), and provides a proportional premium-based deeming rule for non-resident insurers, while streamlining interpretative definitions.
Act Rules Bills
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Removal of difficulties powers permit executive adaptation of tax law during statutory transition subject to safeguards and oversight.
Clause 535 grants the Central Government power to issue orders to remove implementation difficulties in the Income Tax Bill, 2025, provided such orders are not inconsistent with the Act; it expressly permits adaptations of the prior law for assessments up to the tax year ending 31 March 2026, limits the power to three years from 1 April 2026, and requires that every order be laid before both Houses of Parliament.
Act Rules Bills
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Repeal and savings provisions ensure continuity of tax rights, proceedings and carry forwards during statutory transition to the new code.
Clause 536 formally repeals the Income tax Act, 1961 while preserving prior operations, rights, obligations, pending proceedings, recoveries and administrative instruments by saving elections, carry forward of losses and credits, conditional deduction rules, continuation of penal and search proceedings initiated before commencement, and by applying Section 6 of the General Clauses Act, thereby ensuring legal and administrative continuity during transition to the new tax code.
Act Rules Bills
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Legislative oversight of delegated tax rules: parliamentary laying enables modification or annulment while preserving prior actions.
Clause 534 mandates that specified subordinate tax instruments-rules under the Act, Appellate Tribunal procedural rules, and notifications under designated provisions including Chapter XIII G-be laid before each House of Parliament promptly for a cumulative thirty days. If both Houses agree within the following session to modify or annul an instrument, it will thereafter take effect only in the modified form or be of no effect, while a without prejudice clause preserves the validity of actions previously taken under that instrument.
Act Rules Bills
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Rule-making powers: Board may frame subordinate tax rules under government control, with limits on prejudicial retrospective application.
Clause 533 vests the Central Board of Direct Taxes with broad rule-making authority, subject to Central Government control, to frame subordinate legislation for carrying out the purposes of the Income Tax Act. It prescribes an illustrative list of subjects - including income ascertainment, depreciation, procedural matters, electronic filing and international taxation - empowers estimation methods where precise computation is impracticable, and restricts retrospective rules so as not to prejudice assessees unless expressly permitted, all while remaining subject to ultra vires review.
Act Rules Bills
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Rescission of tax exemptions enables government withdrawal of legacy territorial tax benefits, raising procedural fairness and treaty questions.
Clause 531 empowers the Central Government to rescind previously granted tax exemptions, rate reductions, or modifications for specified Union territories by general or special order. Focused solely on withdrawal, the provision applies to any assessee or class of assessees and to part or whole of income, is not time limited, and lacks statutory procedural safeguards, leaving only administrative law principles as constraints and raising questions about retrospectivity, legitimate expectations, and treaty-based concessions.
Act Rules Bills
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Interim tax charging provision ensures continuity, applying the more favourable provision to taxpayers pending enactment.
Clause 530 provides that if, on the first day of a tax year, no Central Act has been enacted to charge income tax, the Act shall operate until such provision is made as if either the provision in force in the preceding tax year or the provision proposed in the Bill before Parliament were in force, whichever is more favourable to the assessee, thereby ensuring continuity of assessment and collection pending enactment.
Act Rules Bills
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Power to frame schemes expands executive authority to enable faceless, technology-driven tax administration and modify statutory application.
Clause 532 grants the Central Government authority to make schemes for any purpose of the Act to enhance efficiency, transparency and accountability by eliminating taxpayer interface and optimising resources, and to issue notifications modifying the application of any provision of the Act to give effect to such schemes; it also permits amendment of schemes under the Income-tax Act, 1961 and requires that notifications be laid before each House of Parliament.
Act Rules Bills
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Withdrawal of approvals: authorities may rescind statutory tax approvals after recording reasons and giving a fair hearing.
Clause 529 authorises the Central Government, the Board, or income-tax authorities to withdraw any approval under the Act at any time after recording reasons and giving the assessee a reasonable opportunity of being heard, even if the enabling provision lacks an express withdrawal clause. The provision mandates recorded reasons and a hearing but leaves "approval" undefined, does not specify substantive grounds for withdrawal, and does not prescribe a limitation period, which may raise uncertainty and prompt judicial scrutiny of procedural adequacy.
Act Rules Bills
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Condonation of delay: authority may excuse late tax approvals for sufficient cause, subject to discretionary review and safeguards.
Clause 528 permits the Central Government or the Board to condone delays in obtaining approvals required before a specified date under the Act for "sufficient cause," vesting discretionary power in the same authority to excuse late applications across a broad range of approvals while leaving "sufficient cause," procedural steps, time limits and appeal mechanisms undefined.
Act Rules Bills
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Executive discretion in tax exemptions for mineral oil sector enables tailored fiscal relief to investors and service providers.
Clause 527 vests the Central Government with discretionary power to grant exemptions, reductions or other modifications in income tax for persons engaged in prospecting, extraction or production of mineral oils, including operators, service providers, suppliers and their employees; notifications must be laid before Parliament and key terms like "mineral oil" and "status" are defined or cross referenced in the Bill.
Act Rules Bills
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Bar on civil suits prevents civil court challenges to tax proceedings, preserving exclusive statutory remedies and good faith immunity.
The provision bars any civil suit to set aside or modify "any proceeding taken or order made" under the Act and grants immunity to the Government and its officers for acts done or intended to be done in good faith, channeling challenges to the statutory appellate and revisionary framework while preserving writ review for ultra vires, mala fide, or constitutional breaches.
Act Rules Bills
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Authorisation for multi-person searches: single authorisations allowed, but assessments must be made separately for each person.
Clause 525 permits a single search or requisition authorisation to name multiple persons without requiring separate instruments, and provides that such joint naming does not, by itself, constitute authorisation against an AOP or BOI. Notwithstanding a consolidated authorisation, assessment or reassessment must be made separately in the name of each person mentioned, preserving individualized tax liability determinations while allowing administrative consolidation of search procedures.
Act Rules Bills
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Rebuttable presumption in tax searches shifts evidentiary burden to taxpayers and explicitly covers virtual digital assets.
Clause 524 establishes a rebuttable presumption that items found in search or survey-books, documents, money, bullion, jewellery, other valuables and virtual digital assets-belong to the person in whose possession they were found; that contents of books and documents are true; that signatures and handwriting are authentic; and that stamped, executed or attested documents were duly executed, with identical presumptions applying to items requisitioned to officers as if discovered in a search.
Act Rules Bills
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Deeming validity of notice: participation or cooperation bars later objections unless raised before assessment completion.
Clause 523 creates a deeming fiction that an assessee's appearance in proceedings or co-operation in an inquiry shall be treated as valid and timely service of any statutory notice, and it precludes the assessee from later objecting that the notice was not served, not timely served, or served improperly; however, this preclusion does not apply where the assessee raises the objection before completion of the assessment or reassessment.
Act Rules Bills
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Substantial compliance preserves tax proceedings despite minor procedural errors when the instrument fulfils legislative intent.
Clause 522 preserves the validity of returns, assessments, notices, summonses and other proceedings despite clerical, typographical or similar procedural defects, provided the document or action is in substance and effect in conformity with the intent and purposes of the Act; it does not cure defects that go to jurisdiction, authority, limitation, or breaches of natural justice, and mirrors Section 292B to maintain continuity of judicial interpretation and application.
Act Rules Bills
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Exclusion of probationary relief bars adult tax offenders from probationary provisions, preserving minors' exception and updating criminal code reference.
The clause mandates that the Probation of Offenders Act and the analogous provision in the new criminal procedure code shall not apply to persons convicted under the Income Tax Bill, 2025, except for those under eighteen, thereby removing judicial discretion for adult tax offenders, updating statutory references, and preserving a minors' exception while raising procedural questions on age determination and scope.
Act Rules Bills
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Jurisdictional threshold: income tax offences must be tried by a Judicial Magistrate of the first class, altering forum nomenclature.
Clause 520 mandates that no court inferior to a Judicial Magistrate of the first class shall try any offence under the Income Tax Bill, 2025, creating a uniform jurisdictional threshold for all tax offences. The provision modernizes terminology compared with Section 292 of the 1961 Act by omitting presidency magistrates, aligning with the CrPC framework and metropolitan magistrates' equivalence, while leaving potential ambiguities about special statute courts and transitional application. Its practical effect is to require complaints be filed before competent magistrates and to enable jurisdictional challenges where proceedings are instituted in inferior forums.

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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