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    Act RulesIncome Tax
    Comparison of Section 201 "New tax regime for individuals, Hindu undivided family and others." betwe...
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    Act RulesIncome Tax
    Show AI Summary
    Optional simplified tax regime limits specified deductions and restricts loss set-off, with timing and IFSC carve-outs.
    The provision creates an optional simplified tax regime for specified persons applying preset slab rates while disallowing a defined list of exemptions, deductions and specified loss set offs; it operates irrespective of other provisions except where expressly carved out, contains deeming rules treating certain losses and depreciation as finally given effect to, provides limited exceptions for IFSC units, and requires taxpayers to elect or withdraw the option within prescribed timelines subject to procedural rules.
    Act RulesIncome Tax
    Show AI Summary
    Concessional tax regime for new manufacturing companies: elective, time limited option with fixed-rate treatments and strict eligibility.
    An elective concessional tax regime permits domestic manufacturing companies to compute tax under a standalone scheme with fixed tax treatments for defined income categories and specified exclusions. Eligibility hinges on incorporation/registration and commencement temporal thresholds, timely exercise of the option which, once exercised, is irrevocable and continues for subsequent years. Failure to meet conditions invalidates the option prospectively. Computation is constrained by sub-section rules that exclude certain deductions and bar set-off of losses or unabsorbed depreciation attributable to excluded deductions, while cross-references determine treatment of capital gains and deemed incomes.
    Act RulesIncome Tax
    Show AI Summary
    Optional concessional tax regime: companies forgo specified deductions to access a lower flat tax rate, with strict irrevocable election rules.
    An optional concessional tax regime permits a domestic company to elect a lower flat rate if it forgoes specified deductions and certain carry-forward reliefs; losses and unabsorbed depreciation attributable to excluded deductions cannot be set off and are deemed given full effect. The election must be made in a prescribed manner by the return due date, is irrevocable and applies to subsequent years, with failure to meet requirements invalidating the option. IFSC Units receive a limited modification preserving certain deductions subject to that provision's conditions.
    Act RulesIncome Tax
    Show AI Summary
    Concessional tax rate for qualifying manufacturing companies restricted by disallowed deductions and binding election requirement.
    An elective regime permits a domestic company incorporated on or after 1 March 2016 and engaged solely in manufacture/production (including related research and distribution) to compute tax at a flat 25% rate if it validly exercises the option in the prescribed manner. The option excludes specified deductions (notably sections 45(2), 47(1)(b), most of Chapter VIII-C except section 146, and sections in section 205(1)(a)-(g)) and bars set-off of earlier losses attributable to those deductions; the provision contains a non-obstante clause while preserving interplay with specified Parts and sections.
    Act RulesIncome Tax
    Show AI Summary
    Long-term capital gains tax restructured: LTCG segregated and taxed separately while preserving basic exemption and transitional relief.
    Clause 197 prescribes segregation of long-term capital gains from other income, taxing non-LTCG income under the normal progressive regime while subjecting LTCG to a separate rate; resident individuals/HUFs may reduce LTCG to preserve the basic exemption to the extent reduced total income falls short of that threshold. A transitional relief for resident individual/HUF transfers of land or building acquired before a specified cutoff requires dual computation-new LTCG method versus an indexed-cost prior-rate computation-and ignores any excess new-regime tax up to the calculated difference. The enacted Act adds a carve-out for non-resident/foreign-company disposals of unlisted or private-company shares excluding section 72(6) set-off.
    Act RulesIncome Tax
    Show AI Summary
    Tax on GDR income segregates dividend and long term gain streams, taxes them at specified concessional rates.
    The provision creates a special tax regime for resident employees of specified knowledge based companies (or their subsidiaries) who receive GDR linked income acquired in foreign currency: dividends on qualifying GDRs are taxed at a prescribed concessional rate, long term capital gains on transfer of such GDRs are taxed at a separate prescribed concessional rate, and the balance of the individual's income is taxed at prevailing rates. GDR income is excluded from gross total income for computing deductions, sole GDR dividend income precludes other deductions, and section 72(6) does not apply to these LTCG computations.
    Act RulesIncome Tax
    Show AI Summary
    Electronic payment acceptance requirement mandates prescribed digital channels for businesses and professions exceeding the turnover threshold.
    The Act mandates that every person carrying on business or profession whose total sales, turnover or gross receipts exceed the turnover threshold in the immediately preceding tax year shall provide facilities to accept payments through prescribed electronic modes in addition to any other electronic modes offered, with specific modes and operational details to be specified by subordinate legislation.
    Act RulesIncome Tax
    Show AI Summary
    Deeming rule for dividends: economic owner taxed where transfers separate entitlement from legal receipt.
    Section 175 deeming rule attributes interest and dividends to the original owner or beneficial holder when securities transactions separate economic entitlement from legal receipt, applies on day to day accrual where beneficial interest existed during a year, operates irrespective of other charging provisions, allows the Assessing Officer to require ownership details, and includes a business of dealing carve out and short term record date anti arbitrage rules that ignore specified losses and adjust cost of additional securities.
    Act RulesIncome Tax
    Show AI Summary
    Reference to Transfer Pricing Officer centralises arm's length price determination, binding assessments and enabling validated multi year application.
    An Assessing Officer, with prior supervisory approval, may refer determination of the arm's length price for international or specified domestic transactions to a designated Transfer Pricing Officer who issues a written order after notice and hearing; that TPO order is binding on the Assessing Officer for computing total income, and an opt in permits validated application of the TPO's determination to the two immediately following tax years subject to prescribed conditions and recomputation procedures.
    Act RulesIncome Tax
    Show AI Summary
    Arm's length price determination allows limited acceptance of actual transaction price; AO may redetermine ALP after show-cause.
    Arm's length price must be determined using specified transfer pricing methods or other Board prescribed methods, selecting the most appropriate method based on transaction nature, functions and prescribed factors. If a single method yields one price that price governs; a notified tolerance permits acceptance of the actual transaction price in specified cases. The Assessing Officer may determine the arm's length price during assessment where documentation, reliability, or compliance with notice requirements is deficient, but must first give the taxpayer a show cause notice before recomputing total income on that basis.
    Act RulesIncome Tax
    Show AI Summary
    Specified domestic transaction definition narrows domestic related party scope and imposes an aggregate threshold triggering special anti avoidance rules.
    Section 164 defines specified domestic transaction for the Chapter on avoidance of tax by enumerating categories of domestic dealings (cross referencing sections 122, 140(9), 140(13), Chapter VIII, section 144 and section 205(4)) and by permitting additional prescribed transactions; each item is subject to exclusion of international transactions and to an annual aggregate materiality threshold that determines applicability.
    Act RulesIncome Tax
    Show AI Summary
    Associated enterprise definition expands to objective participation and dependence tests, broadening related party compliance risks.
    Clause 162 defines associated enterprise by a general participation test (direct, indirect or through intermediaries in management, control or capital, or common persons participating therein) and a non exhaustive deeming list operative at any time during the tax year that includes objective thresholds and indicia such as minimum shareholding, reciprocal holdings, loan exposure relative to book assets, guarantee exposure, appointment control, IP dependence, supply/purchase dependence, family/common control and a residual mutual interest relationship subject to prescription; for specified domestic transactions the definition is expanded to include other units of the assessee and cross referenced persons or enterprises.
    Act RulesIncome Tax
    Show AI Summary
    Tax rebate for resident individuals: post calculation reduction of tax up to capped amounts with special formula for higher incomes.
    A deduction from income tax payable is available to resident individual assessees in specified income bands: tax is computed first and then reduced by a rebate subject to fixed monetary caps; for incomes above the higher threshold a formulaic reduction by the excess income is prescribed, and any deduction is capped so it does not exceed tax payable under the referenced computation provision.
    Act RulesIncome Tax
    Show AI Summary
    Deduction for interest on deposits: account-type ceilings differ by seniority, with senior citizens' scope including time deposits.
    Deduction for interest on deposits permits individuals (distinctly identifying senior citizens) and HUFs to claim limited deductions on interest from deposits with regulated banks, cooperative societies and Post Offices, subject to monetary ceilings and account-type limits: non-senior individuals and HUFs are restricted to interest from savings accounts excluding time deposits, senior citizens are allowed a broader deduction described as applying to savings accounts and expressly including time deposits, and no deduction is permitted where the deposit is held by or on behalf of a firm, association of persons or body of individuals; "time deposits" are defined as deposits repayable on expiry of fixed periods.
    Act RulesIncome Tax
    Show AI Summary
    Time bound deduction for Producer Companies allows full tax relief for profits from defined member related agricultural activities, subject to sequencing.
    A time bound tax incentive allows Producer Companies, as defined in the Companies Act, to claim a full deduction for profits attributable to an eligible business (marketing members' agricultural produce; supplying members with agricultural inputs; processing members' agricultural produce), subject to a turnover ceiling and a sequencing rule that permits the deduction only after other Chapter deductions; the clause omits attribution, anti abuse and procedural rules, creating compliance uncertainty.
    Act RulesIncome Tax
    Show AI Summary
    Deduction for co-operative societies: specified cooperative income receives preferential tax deductions, subject to governance and computation rules.
    Clause 149 permits targeted tax deductions for co operative societies by fully or partially deducting income attributable to enumerated cooperative activities (banking/credit to members, cottage industries, marketing of members' agricultural produce, supply of agricultural inputs, processing without power, collective disposal of members' labour, and fishing/allied activities), supplies by primary societies to federal cooperatives or government entities, inter cooperative investment income, and income from letting godowns; certain non specified activities qualify only up to capped amounts, governance restrictions on voting rights condition some deductions, and cooperative deductions are computed after reducing specified pre existing deductions.
    Act RulesIncome Tax
    Show AI Summary
    Special tax deduction for North-Eastern undertakings grants full profit exemption for a fixed consecutive period.
    A 100% deduction of profits and gains is available to undertakings in specified North-Eastern States for ten consecutive tax years starting from an "initial tax year", contingent on commencement or substantial expansion within a discrete qualifying window, formation and newness-of-plant conditions, exclusions for specified goods and activities, a defined test for "substantial expansion", and exclusivity preventing concurrent Chapter deductions; cross-referenced provisions determine treatment of re-established entities and aggregate duration limits.
    Act RulesIncome Tax
    Show AI Summary
    Deduction for research donations: tax relief for approved gifts subject to verification and specified exclusions.
    Deduction is allowed for donations to approved research associations or educational institutions for scientific or social science/statistical research, contingent on recipient approval and information furnished by the payee to the prescribed income tax authority and subject to the Board's risk based verification; deductions are excluded where the donor has business/profession income or where contributions in cash exceed the prescribed threshold, and deduction is not to be denied solely because recipient approval is later withdrawn.
    Act RulesIncome Tax
    Show AI Summary
    Pension contribution deduction: employer and individual pension contributions receive tax relief, with caps and deeming rules affecting receipt.
    Section 124 allows deductions for employer contributions to Central Government notified pension schemes subject to employer type percentage ceilings and for individual deposits into such schemes subject to an overall statutory cap; parent or guardian deposits for minors are aggregated with the individual cap. The provision defines salary for this purpose to include dearness allowance where employment terms so provide, disallows duplicate deduction where relief was claimed under the related provision, and deems amounts received on closure, opt out, or as annuity taxable in the year of receipt, with limited exceptions for nominee/parent/guardian receipts on death.
    Act RulesIncome Tax
    Show AI Summary
    Loss carry-forward restrictions: beneficial ownership and voting-power continuity determine entitlement to set off historic losses.
    The section restricts carry forward and set off of losses on change in firm constitution, succession other than by inheritance, and change in shareholding of non-public companies unless continuity of beneficial ownership of shares carrying not less than fifty-one percent of voting power is maintained or specified exceptions (death, gift to relative, certain amalgamations/demergers, insolvency resolution plans with opportunity to be heard, tribunal-approved restructuring, relocation, and a start-up carve-out) apply.

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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

      ActsIncome Tax