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    Deductions available under "Income from other sources" in Clause 93 of Income Tax Bill, 2025 VS. Sec...
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    Act RulesBills
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    Deductions for income from other sources clarified, aligning allowable expenses and curbing dividend-related deduction claims.
    Clause 93 of the Income Tax Bill, 2025 prescribes deductions for Income from other sources, allowing reasonable sums for realising dividends or interest on securities, deductions for specified income categories via cross references, a capped family pension deduction, non capital expenditures wholly and exclusively for earning such income, a 50% concession for certain incomes, and targeted restrictions limiting deductible interest tied to certain dividend incomes to a proportion of that income.
    Act RulesBills
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    Taxation of miscellaneous income broadens taxable sources to include modern streams like digital assets and trust distributions.
    Clause 92 establishes a residual charging rule that any income not charged under other heads and not excluded is taxable under Income from other sources, enumerating a non exhaustive list of receipts-dividends, gambling winnings, employee fund contributions, specified insurance proceeds, interest including on compensation, rental of machinery or furniture, forfeited advances, employment termination compensation, business trust distributions, life insurance sums outside specified products, and gifts or property transfers-while providing exemptions for transfers from relatives, on marriage, under wills and certain local authority receipts, and setting valuation and definition rules including treatment of digital assets.
    Act RulesBills
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    Valuation officer referral: a statutory mechanism to address discrepancies between declared asset values and fair market value.
    Clause 91 empowers the Assessing Officer to refer a capital asset's valuation to a Valuation Officer where an assessee's declared amount appears inconsistent with the fair market value, applying to assets valued by registered valuers and to other cases meeting prescribed thresholds or circumstances, and adopts procedural modifications by reference to Section 269(3)-(8).
    Act RulesBills
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    Cost of acquisition rules clarified: FMV option and acquisition cost deemed nil when indeterminable, affecting capital gains computation.
    Clause 90 defines cost of improvement as nil for intangible assets and permits post reference date expenditure for other assets; sets cost of acquisition as purchase price or previous owner's purchase price and deems cost nil where indeterminable; provides tailored rules for financial assets to avoid taxing non economic gains; and allows a fair market value option as cost of acquisition for earlier acquisitions to reflect market and inflationary changes.
    Act RulesBills
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    Extension of time for reinvesting capital gains tied to receipt of compensation preserves exemption eligibility after compulsory acquisition.
    Where an original asset is compulsorily acquired and compensation is delayed, the period for acquiring a new asset or depositing or investing capital gains is calculated from the date of receipt of compensation rather than the date of transfer; Clause 89 of the Income Tax Bill, 2025, states this rule and declares it to operate irrespective of conflicting timelines in specified sections, and Section 54H of the Income-tax Act, 1961, operates on a comparable principle tied to specified reinvestment provisions.
    Act RulesBills
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    Capital gains exemption for industrial relocations to SEZs conditions relief on reinvestment in new SEZ assets and deposit rules.
    Clause 88 grants a capital gains exemption when assessees transfer assets while shifting an industrial undertaking from an urban area to an SEZ, conditional on reinvesting gains into new SEZ assets within the prescribed investment window; unutilized gains must be deposited in a specified account and any excess of gains over the cost of new assets is taxable. Eligibility centers on assets used in the undertaking and utilisation for notified SEZ investments, with deposits treated as part of the new asset's cost for calculating the exemption.
    Act RulesBills
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    Capital gains exemption for industrial relocation to non urban areas conditional on reinvestment and deposit requirements.
    Exemption of capital gains on transfer of assets for industrial undertakings shifting from urban to non urban areas is subject to reinvestment in qualifying assets (machinery, plant, buildings, land or rights therein) acquired within the prescribed timeframe; any shortfall between capital gains and cost of new assets is taxable, and unutilised gains must be deposited in a specified bank or institution before filing the return, with untapped deposits taxed after the statutory period; the definition of urban area and scheme specified expenditure govern eligibility.
    Act RulesBills
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    Capital gains exemption for residential reinvestment preserved with clearer compliance and monetary caps under the 2025 proposal.
    Clause 86 provides a capital gains exemption for individuals and HUFs who reinvest long-term capital gains from specified asset transfers (excluding residential houses) into a residential house in India within prescribed purchase or construction timeframes. The exemption is proportional when net consideration exceeds the replacement cost and full when replacement cost equals or exceeds net consideration. Unutilised gains must be deposited under a notified government scheme before filing returns, and exempted gains become taxable if the replacement asset is transferred within three years. Ownership of multiple residential houses or acquisition of another house within specified periods disqualifies the exemption.
    Act RulesBills
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    Capital gains deferral on compulsory acquisition permits tax relief when compensation is reinvested in similar industrial assets.
    Clause 84 provides a deferral regime for capital gains on compulsory acquisition where compensation reinvested in similar industrial land or buildings within three years is either exempt or adjusts the cost basis: excess gains over new asset cost are taxed as income and the new asset's cost is set to nil for future computations, while gains equal to or below cost reduce the asset's cost. Unutilised gains must be deposited by the return filing due date and are treated as part of the deemed cost; unutilised amounts after the specified period are charged as income and subject to notified withdrawal rules.
    Act RulesBills
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    Capital gains exemption for reinvestment in specified bonds preserves non taxability subject to retention and anti abuse rules.
    Clause 85 provides that capital gains from transfer of long term assets are not charged if the assessee reinvests whole or part of such gains in government notified bonds within six months, subject to a per year investment ceiling and a specified retention period; transfers, conversions, or loans against the new asset within the lock in are treated as taxable events and investments claiming this exemption cannot simultaneously claim alternative deductions.
    NewsIndian Laws
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    Tax treatment for foreign securities clarified, enhancing investor certainty and tightening compliance obligations for cross border instruments.
    The Finance Bill, 2025 amendments clarify tax treatment for securities held by foreign investors by defining covered instruments for FIIs and specified funds under applicable regulatory compliance, expand coverage to include over the counter derivatives while removing ambiguous intermediary language, and strengthen assessment provisions to address inconsistencies and undisclosed income; Part IV validates pension classification authority to distinguish pension entitlements by retirement date.
    NewsIndian Laws
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    IFSC tax incentives expanded to ease fund relocations, clarify exemptions, and simplify non resident taxation.
    Amendments relax compliance for investment funds by easing indirect participation thresholds and restoring executive modification powers; expand the relocation regime to include retail schemes and ETFs for tax neutral transfers into the IFSC; introduce a presumptive taxation scheme for non residents providing technology services for electronics manufacturing with exclusions for permanent establishment and royalty rules; correct and align IFSC insurance and specified fund exemptions with IFSCA conditions; extend derivative transaction exemptions to FPIs in the IFSC; refocus Chapter XIV B on undisclosed income and add Section 143(1) checks for return inconsistencies; and broaden the definition of capital asset to include securities held by Alternative Investment Funds under SEBI and IFSCA.
    Act RulesBills
    Show AI Summary
    Capital gains exemption for agricultural land: reinvest sale proceeds in new agricultural land within two years to defer tax.
    Capital gains on transfer of agricultural land are not charged if proceeds are reinvested in new agricultural land within two years by individuals or HUFs who used the land for agriculture in the two years prior. Unutilised gains at filing must be deposited in a specified bank account and applied under a government-notified scheme; unused deposits after the prescribed period are taxed and may be withdrawn per the scheme. Excess gains are taxed under the bill's taxing provision and the new asset's cost is treated as nil for subsequent gains if sold within three years; otherwise the cost basis is reduced by the capital gains.
    Act RulesBills
    Show AI Summary
    Capital gains reinvestment relief: deferral for gains when proceeds are reinvested in residential property with deposit safeguards.
    Clause 82 permits deferral or exemption of capital gains from sale of residential property where proceeds are reinvested in another residential property, treating gains exceeding the new asset's cost as taxable. Unutilized gains must be deposited in a specified bank or institution under a notified scheme and such deposits count toward the new asset's cost. Deposited amounts not applied within the prescribed period become taxable though the clause provides for withdrawal of unused sums. The clause allows a one time option to invest in two houses subject to a gain threshold and imposes caps on eligible cost and gains to target relief.
    Act RulesBills
    Show AI Summary
    Advance money treatment: deduction from cost of acquisition barred where the advance was included in total income.
    Clause 81 requires that advance money retained during negotiations for transfer of a capital asset be deducted from the cost of acquisition (original cost, written down value, or fair market value) but prohibits that deduction where the advance has already been included in the assessee's total income under the statutory provision referenced, aligning with Section 51's objective while differing in the cross references and raising compliance and interpretive issues.
    Act RulesBills
    Show AI Summary
    Fair market value deemed consideration: FMV used to compute capital gains when actual consideration is indeterminate.
    Where actual consideration for transfer of a capital asset is not ascertainable, the fair market value (FMV) of the asset on the transfer date is to be deemed the full value of consideration for capital gains computation. Determination may use comparable sales, income, or cost approaches, but unique or illiquid assets and absence of standardized methods create practical valuation disputes. Taxpayers must substantiate FMV and authorities need valuation frameworks to ensure consistent application and prevent understatement of taxable gains.
    Act RulesBills
    Show AI Summary
    Fair market value deemed consideration for unquoted share transfers to prevent undervaluation and ensure correct capital gains computation.
    Deemed full consideration for transfer of unquoted shares is the fair market value when actual consideration is lower; fair market value must be determined by prescribed valuation procedures, with exemptions available for specified classes or conditions, and compliance requires documentation, qualified valuation and potential administrative guidelines to resolve disputes.
    Act RulesBills
    Show AI Summary
    Full value of consideration deemed to stamp duty valuation; safe harbor permits minor discrepancies and valuation review.
    Where declared consideration for transfer of land or buildings is less than the stamp duty valuation, the stamp duty value is deemed the full value of consideration for capital gains purposes; the stamp duty value as at the agreement date may apply if consideration is received through prescribed banking channels before the agreement date. A limited safe harbor accepts declared consideration within a narrow margin above stamp duty valuation. Assessing Officers may seek Valuation Officer review where the stamp duty value is disputed, and Clause 78 defines assessable as the value adopted for stamp duty purposes.
    Act RulesBills
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    Capital gains treatment for slump sales clarified: net worth valuation and accountant certification required for tax computation.
    The computation treats the net worth of the transferred undertaking-aggregate assets less liabilities, excluding revaluation increases-as the cost of acquisition; where lump sum consideration diverges from market values, the fair market value of assets on the transfer date is deemed the full value of consideration. Depreciable assets use written down value, certain goodwill and specified assets are valued at nil, and an accountant's report certifying the net worth computation is required.
    Act RulesBills
    Show AI Summary
    Market Linked Debenture tax treatment: gains treated as short-term capital gains irrespective of holding period.
    Clause 76 mandates that gains on Market Linked Debentures and specified debt instruments be treated as short-term capital gains irrespective of holding period, prescribes computation as full consideration less cost of acquisition and transaction expenditure (X = A - B - C), disallows deduction for Securities Transaction Tax, and defines covered assets and specified mutual funds to determine applicability.

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

      24 July, 2024

      Contents
      Notifications
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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