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    NewsBills
    Deduction under section 80CCD for contributions made to NPS Vatsalya
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    NewsBills
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    Deduction under Section 80CCD extended to NPS Vatsalya contributions, with withdrawal taxation and partial withdrawal exemption.
    Parents or guardians may claim a statutory deduction for amounts paid into a minor's NPS Vatsalya account up to a prescribed ceiling. Amounts for which a deduction is allowed, including any accretions, will be taxed on withdrawal when deposits were made to a minor's account, whereas sums received on account closure due to the minor's death will not be treated as the parent's or guardian's income. Partial withdrawals for defined contingencies are excluded from the parent's or guardian's income to the extent they do not exceed a prescribed percentage of contributions and subject to regulatory conditions.
    NewsBills
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    Exemption for National Savings Scheme withdrawals: qualifying pre-1992 deposits and accrued interest by individuals are excluded from taxation.
    Amendment to Section 80CCA exempts withdrawals by individuals of NSS deposits and accrued interest-limited to deposits made before 1 April 1992 for which a deduction was allowed-and applies to withdrawals made on or after 29 August 2024, with retrospective effect from that date.
    NewsBills
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    Annual value of self-occupied property simplified, nil deemed where owner occupies or cannot occupy for any reason.
    The annual value of a property used as the owner's residence shall be taken as nil if the owner occupies it for residence or cannot actually occupy it for any reason; the existing restriction limiting this benefit to a specified limited number of houses remains unchanged and the amendment applies prospectively under the Finance Bill.
    NewsBills
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    Obligation to furnish crypto-asset transaction information: reporting entities must file prescribed statements and correct defects promptly.
    Proposed section 285BAA mandates that prescribed reporting entities furnish statements of crypto-asset transactions to the prescribed income-tax authority in prescribed form, manner and time, allows the authority to intimate defects and permit rectification within a prescribed period, treats unrectified defects as inaccurate information, enables issuance of notices to require late filers to submit statements, requires disclosure and correction of discovered inaccuracies, and empowers the Central Government to prescribe registration, information maintenance, and due diligence obligations for identification of crypto-asset users or owners; the virtual digital asset definition is also expanded to include crypto-assets relying on cryptographically secured distributed ledgers.
    NewsBills
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    Tonnage tax option timeframe extended - order window lengthened to quarter-end for new applications, easing verification.
    The amendment extends the decision period for applications to opt into the tonnage tax scheme: where an application is received on or after 1 April 2025 the Joint Commissioner must pass the written order approving or rejecting the option before the expiry of three months from the end of the quarter in which the application was received, providing additional time for verification, inspections, and an opportunity of being heard.
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    Limitation for deeming tax-collector default: exclusion of court stay periods aligns time-limit rules with reassessment principles.
    The amendment makes the limitation period for deeming a person an assessee in default for failure to collect tax subject to exclusion of periods such as court stays by applying the exclusion and suspension principles of the general reassessment framework to that time limit; the change is to take effect from the first day of April, 2025.
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    Exemption from prosecution for delayed TCS payment where remittance occurs by prescribed quarterly statement deadline.
    Amendment provides that prosecution for failure to pay tax collected at source shall not be instituted if payment has been made to the Central Government on or before the time prescribed for filing the quarterly statement under the proviso to sub section (3) of the tax collected at source provision, thereby conditioning criminal liability on meeting the quarterly statement remittance deadline.
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    Penalty authority of Assessing Officer expanded; prior Joint Commissioner approval required for penalties exceeding prescribed statutory limit.
    Penalties under specified sections will be levied by the Assessing Officer instead of the Joint Commissioner, subject to the prior approval requirement where penalties exceed the statutory threshold in sub section (2) of section 274; a consequential amendment to clause (n) of sub section (1) of section 246A is proposed. Section 271BB, a penalty tied to an omitted parent provision, is proposed to be omitted. The amendments are to take effect from the first day of April following enactment.
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    Faceless schemes notification: Government may issue ongoing directions allowing notifications beyond the prior cutoff to operationalise schemes.
    The amendment removes the statutory end date for notifying faceless schemes so the Central Government may issue directions to notify and operationalise faceless procedures under the direct tax statute beyond the prior cut off, following prior extensions due to implementation challenges; the change takes effect from the first day of April after enactment.
    NewsBills
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    Processing period for immunity applications extended to a longer disposal timeframe for Assessing Officers, effective from April.
    The amendment extends the Assessing Officer's processing period for applications seeking immunity from penalty and prosecution from one month to three months measured from the end of the month in which the application is received. The current filing requirement that an application for immunity from penalty be made within one month from the end of the month in which the relevant order is received remains as stated. The amendment is proposed to take effect from the first day of April, 2025.
    NewsBills
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    Updated return time-limit extended to encourage voluntary compliance, with higher additional tax rates for later filings.
    Extension of the filing window for updated returns from two years to four years with a graded schedule of higher additional income-tax rates for filings after two, three, and up to four years; filing barred where a show-cause notice has been issued after thirty-six months, subject to an exception if a later determination finds the notice unwarranted. Effective 1 April 2025.
    NewsBills
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    Tax exemption for SUUTI extended to March 31, 2027, barring income and related taxes on its receipts.
    An amendment to sub section (1) of section 13 of the UTI Repeal Act, 2002 will provide that, notwithstanding the Income tax Act or any other enactment, no income tax or any other tax shall be payable by the Administrator in relation to the Specified Undertaking of Unit Trust of India for the period beginning on the appointed day and ending on the 31st day of March, 2027; the amendment takes effect from 1st April, 2025.
    NewsBills
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    Provisional assessment time-limit set with limited extension; voluntary post-clearance revision permitted; Interim Board to exercise Settlement Commission powers.
    A definite time limit is imposed for provisional assessments under Section 18: finalisation within two years with a possible one year Commissioner extension and suspension grounds; Section 18A establishes voluntary post clearance revision treated as self assessment permitting duty payment or refund claims, with refund limitation of one year from payment and the relevant date for revised entry being the date of payment. Amendments also define an Interim Board and allocate Settlement Commission powers to it.
    NewsBills
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    Tariff rationalisation compresses rate slabs and reclassifies goods to improve identification and align with international nomenclature.
    Amendments compress and lower multiple tariff slabs into streamlined rate bands and tariffise effective rates, and introduce new tariff lines and supplementary notes to improve goods identification and align classifications with WCO HS 2022; new lines include distinctions by process and variety for rice, makhana product categories, PCB/PCT/PBB concentration levels in waste oils, separate precious metal purity bands, and entries for dual-use chemicals and technical-grade pesticides, with changes effective from a designated future date.
    NewsBills
    Show AI Summary
    Customs duty rate changes alter import tariffs across sectors, including immediate provisional increases and notified decreases.
    Amendments to the First Schedule revise import duty rates by specifying targeted tariff increases (immediately by provisional declaration for selected textile and electronics items), extensive tariff decreases across diverse commodities (with later effective dates subject to notification), and numerical rate adjustments for raw materials, ores, metals and industrial inputs, including reductions to nil for specified waste, scrap and ores; provisions are structured by tariff item and rely on finance measure clauses and a provisional collection mechanism for implementation.
    NewsBills
    Show AI Summary
    Customs duty adjustments recalibrate import and export tariffs to incentivise specific sectors and inputs, changing duty rates broadly.
    Proposed notifications adjust Basic Customs Duty and Export Duty effective 2 February 2025, reducing or nil rating duties on specified aquafarming inputs, wet blue leather, metal waste and lithium ion battery scrap, and numerous electronics inputs and parts; add exempted capital goods for lithium ion battery manufacture for EVs and mobile phones; and amend duty rates for motor vehicles, motorcycles and toy components to recalibrate import protection and incentivise manufacturing and exports.
    NewsBills
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    Agriculture Infrastructure and Development Cess revised to impose differentiated import cess rates on specified goods, altering tariff-stage duties.
    Notification No. 11/2021 - Customs is amended to revise the Agriculture Infrastructure and Development Cess (AIDC) rates on specified imported goods effective 02.02.2025, introducing differentiated cess where previously nil across categories including stone, footwear, motor vehicles (with special entries for concessional imports and used vehicles), solar cells and modules, PVC flex materials, electronics and parts, furniture, lighting, smart meters, yachts, bicycles, candles, platinum findings and certain laboratory chemicals.
    NewsBills
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    Social Welfare Surcharge exemptions expanded: specified imported goods excluded from SWS levy under amended customs notification.
    Amendment to Notification No. 11/2018 exempts specified imported goods from levy of the Social Welfare Surcharge (SWS) with effect from 02.02.2025. Exempted categories include solar cells and modules, specified motor vehicles (including used vehicles and vehicles for transport of goods or ten or more persons and certain high-CIF value cars), various footwear classifications, furniture and bedding articles, lighting fittings, parts of electronic toys, candles, PVC flex films, smart electricity meters, yachts and pleasure vessels, articles of gold/silver under specified entries, dutiable personal-use imports, passenger baggage articles, and certain laboratory chemicals.
    NewsBills
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    Customs duty exemptions review extends and modifies conditional exemptions, adds entries for drugs and satellite goods, and lapses one entry.
    Review of customs duty exemptions renews and recalibrates conditional BCD exemptions under Notification No. 50/2017 Customs: twenty four entries are extended with modifications and one entry lapses. Extensions and modifications preserve duty relief across sectors-ships and ship manufacture, bulk drugs and life saving medicines, testing imports, telecom optical fibre inputs, textile machinery, wind energy components and seeds for lab grown diamonds-while creating separate entries and refining lists for drugs, diagnostics and satellite and launch vehicle related imports.
    NewsBills
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    Import compliance timeframe extended; end use period lengthened and reporting shifted to quarterly filings under IGCR amendment.
    Amendments to the IGCR Rules extend the period to fulfil the specified end use under Rules 6 and 7 and change the compliance reporting requirement so importers submit a quarterly statement instead of a monthly statement, thereby adjusting both the end use timeframe and the frequency of filings for imports at concessional duty for manufacture of excisable goods.

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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