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    NewsBills
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    Sunset of share premium taxation exempts excess consideration on private company share issuance from tax from the new assessment year.
    The amendment provides that clause (viib) of section 56(2), which taxed excess consideration received by closely held companies on issue of shares as Income from other sources, shall not apply from the specified assessment year, with the change effective from the stated first day of April.
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    Presumptive taxation for non-resident cruise operators establishes deemed profit treatment and conditional lease rental exemption for related companies.
    A new presumptive taxation regime for non-resident cruise-ship operators deems a fixed proportion of amounts received or receivable for carriage of passengers as profits from that business, replacing the existing presumptive shipping provisions for cruise-ship activity. Additionally, lease rentals paid by a company opting into this regime to a foreign recipient will be exempt in the hands of that recipient if both are subsidiaries of the same holding company, with defined subsidiary/holding relationships and a time-bound availability.
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    Block assessment for search cases consolidates years into one assessment, streamlines investigation and prescribes tax and penalty rules.
    A scheme of block assessment applies where a search under section 132 or requisition under section 132A is initiated on or after the commencement date, requiring the Assessing Officer to make one consolidated assessment for a defined block period covering six preceding assessment years and the period up to execution of the last authorisation. Regular assessments for years within the block abate; total income for the block is to include undisclosed income evidenced during search or requisition, undisclosed income attributable to other persons is to be transferred to their jurisdictional Assessing Officer, and specified tax, penalty and timeline rules apply.
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    Reassessment notice limits tightened, requiring pre-notice show-cause, specified authority approval and revised limitation periods for reopening cases.
    Before initiating assessment, reassessment or recomputation the Assessing Officer must issue a notice with the prior order determining fit for reopening and require a return within a period not exceeding three months. A notice can be issued only where information suggests escaped income; survey information after the commencement date is included as such information, and information from a notified information sharing scheme requires prior specified authority approval. A pre notice show cause procedure with an opportunity to reply and specified authority approval to proceed is mandated, subject to transitional provisions and revised limitation windows, including extended periods for substantial escaped income.
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    Limitation for imposing penalties clarified by removing receipt-by-senior-commissioner reference, simplifying calculation of penalty limitation periods.
    The provision governing the period of limitation for imposing penalties is amended to omit the reference to receipt of appellate orders by the Principal Chief Commissioner or Chief Commissioner, removing ambiguity in calculating limitation periods arising from appeals; the amendment takes effect from 1 October 2024.
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    Withholding of refunds: extension of permissible withholding period and continued set-off against outstanding tax demands under new provisions.
    Assessing Officers may adjust refunds against outstanding tax demands and withhold refunds during pending assessment or reassessment subject to prior approval and reasons recorded in writing. The permissible withholding period is extended beyond the assessment date, and additional interest under the refund interest provision is not payable for the duration the refund is lawfully withheld.
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    Time-limit for appeals to ITAT changed to a two-month period measured from month-end after electronic communication of orders.
    The proposal adds penalty orders on undisclosed income arising from search assessments to the list of orders appealable to the Income Tax Appellate Tribunal, correcting an omission; and it changes limitation computation so appeals may be filed within two months from the end of the month in which the order is communicated to the assessee or to the Principal Commissioner/Commissioner to accommodate electronic faceless appeal communications.
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    Charitable trust regime consolidation: transition to unified registration framework with phased sunsetting and protected investment modes retained.
    The proposal phases out the approval route under sub clauses (iv), (v), (vi) and (via) of clause (23C) of section 10 by preventing consideration of applications filed on or after 1 October 2024, while allowing pending applications and existing approvals to continue under the first regime; approved entities may later apply for registration under the sections 11-13 framework, with amendments preserving certain eligible investment modes and enabling the transition.
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    Condonation of delay in registration applications allows authorities to treat late charitable registration filings as timely if reasonable cause exists.
    The amendment authorises the Principal Commissioner or Commissioner to condone delay in filing registration applications by trusts and institutions and to treat such applications as filed within time if satisfied there is a reasonable cause for the delay. This power is intended to avert tax liability on accreted income or permanent exit from the exemption regime and takes effect from 1 October 2024.
    NewsBills
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    Section 80G approval timelines rationalised to prevent unintended loss of charitable approval and streamline application processing.
    Amendments rationalise filing timelines and the processing procedure for funds and institutions seeking approval under section 80G, addressing cases where entities cannot meet existing deadlines and preventing unintended permanent loss of approval; the change preserves donor deduction eligibility and takes effect from the commencement date specified in the Bill.
    NewsBills
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    Registration timelines for charitable trusts moved to a six-month processing period measured from quarter-end for applications.
    Applications by trusts, funds, or institutions seeking registration under section 12AB or approval under section 80G must be processed by the Principal Commissioner or Commissioner within six months from the end of the quarter in which the application is received; this quarter-end computation applies to initial and further or final registration/approval applications and replaces the prior month-end calculation.
    NewsBills
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    Merger of trusts may trigger tax on accreted income; proposed conditions aim to exempt qualifying mergers and clarify compliance.
    Proposal: mergers of approved or registered charitable trusts and institutions may attract the tax on accreted income; a new statutory provision will prescribe conditions under which such mergers will not attract the accreted-income regime, specifying qualifying non-attraction safeguards for mergers between entities across the two approval/registration regimes. The amendments are to apply prospectively from the notified commencement date of the finance measures.
    NewsBills
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    Registration option for charitable trusts expanded to allow claiming exemption under additional specified section 10 clauses.
    The amendment adds additional section 10 clause references to sub-section (7) of section 11 so that registration under section 12AB becomes inoperative when an entity is approved under those additional clause types; trusts and institutions retain a one-time option to apply to make their section 12AB registration operative, permitting an election between the registration regime and specified section 10 exemption regimes.
    NewsBills
    Show AI Summary
    Capital gains reform: simplified holding periods, unified long-term rate, higher short-term levy, and removal of indexation.
    The Bill simplifies capital gains taxation by creating two holding periods-shorter for listed securities and longer for other assets-raising the specific short-term rate for securities subject to securities transaction tax while unifying long-term gains under a single lower rate with an increased exemption for specified securities; it removes indexation for long-term gains on property, gold and unlisted assets, brings unlisted debentures and bonds to tax at applicable rates, and aligns non-resident and withholding provisions to the new rates, effective from the operative date in the Bill.
    NewsBills
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    Specified Mutual Fund definition revised: funds must invest over sixty five percent in debt/money market, effective April 2026.
    The amendment redefines Specified Mutual Fund under section 50AA to mean (a) a mutual fund investing more than sixty five percent of its proceeds in debt and money market instruments, or (b) a fund investing sixty five percent or more of its proceeds in units of such a fund. The change clarifies treatment of ETFs, gold funds and Fund of Funds previously affected by the thirty five percent equity threshold and is proposed to be effective from 1 April 2026 for AY 2026 27 onwards.
    NewsBills
    Show AI Summary
    TDS rate rationalisation reduces multiple withholding rates to simplified lower bands, retaining specific exceptions for certain payments.
    Rationalisation of TDS rates streamlines withholding provisions by lowering multiple prior rates for specified non-salary payments, proposing omission of the provision on mutual fund unit repurchases, and preserving existing withholding regimes for salaries, virtual digital assets, lotteries, immovable property transfers, non-resident payments and contractor payments; implementation is phased on different effective dates to promote administrative simplification and improved taxpayer compliance without changing substantive chargeability.
    NewsBills
    Show AI Summary
    TDS on insurance commission reduced for non-corporate payees, affecting deduction at credit or payment from the effective date.
    The Finance Bill amends withholding tax treatment for remuneration or reward for soliciting or procuring insurance business by reducing the TDS rate applicable to resident non-corporate payees; payers must continue to deduct tax at source when such income is credited or paid under existing triggering rules and modes, with the reduced rate taking effect from the prescribed effective date stated in the amendment.
    NewsBills
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    TDS on life insurance payouts reduced by amendment, lowering withholding obligation on qualifying policy payments for residents.
    Section 194DA requires persons paying sums under life insurance policies to deduct tax at source on the income component of such payments, excluding amounts exempt under clause (10D) of section 10. The Finance (No.2) Bill, 2024 proposes a reduction in the withholding rate under Section 194DA, with the amendment to take effect from the first day of October under Clause 54, thereby lowering the deductor's TDS obligation on qualifying life insurance payouts to residents.
    NewsBills
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    TDS on lottery commissions reduced under section 194G, easing withholding obligations for payers from October onward.
    Payers of commission, remuneration or prizes on sale or distribution of lottery tickets must deduct tax at source at the statutory withholding rate at the time of credit or payment, whichever is earlier. The Finance Bill amendment (Clause 56) lowers that withholding rate, with the reduction effective from the commencement date specified in the Bill.
    NewsBills
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    TDS on commission and brokerage reduced, altering withholding obligations and the timing of deduction for non individual payors.
    Section 194H imposes TDS on persons other than individuals and HUFs for commission or brokerage (excluding insurance commission), requiring deduction at the time of credit or payment. The Finance Bill proposes a reduction in the TDS rate under section 194H, with the amendment to take effect from the stated commencement date, thereby modifying deductor withholding obligations for subsequent payments.

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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