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Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024
The rates for deduction of income-tax at source during the FY 2024-25 under the provisions of section 193, 194A, 194B, 194BB, 194D, 194LBA, 194LBB, 194LBC and 195 have been specified in Part II of the First Schedule to the Bill.
2. For sections specifying the rate of deduction of tax at source, the tax shall continue to be deducted as per the provisions of the relevant sections of the Act.
3. It is proposed that for deduction of income-tax at source on other income in case of company which is not a domestic company, rates shall be reduced from 40% to 35%.
4. It is proposed that for deduction of income-tax at source on the incomes in the nature of capital gains for non-residents, the rates shall be as per the Table below:
Sl.No. | Income | For transfers taking place before 23rd day of July, 2024 / Rate of TDS | For transfers taking place on or after 23rd day of July, 2024 / Rate of TDS |
(1) | long-term capital gains referred to in section 115E | 10% | 12.5% |
(2) | long-term capital gains referred to in sub-clause (iii) of clause (c) of sub- section (1) of section 112 | 10% | The clause is not applicable for transfers on or after 23rd July, 2024 |
(3) | long-term capital gains referred to in section 112A exceeding one lakh twenty five thousand rupees | 10% | 12.5% |
(4) | long-term capital gains [not being long term capital gains referred to in clauses (33) and (36) of section 10] | 20% | 12.5% |
(5) | short-term capital referred to in section 111A | 15% | 20% |
5. Apart from the above, the rates will remain the same as those specified in Part II of the First Schedule to the Finance Act, 2023, for the purposes of deduction of income-tax at source during the FY 2024-25.
6. The surcharge on the amount of income-tax for the purposes of the Union is the same as that specified for the FY 2023-24.
(2) Education Cess—
“Health and Education Cess” shall continue to be levied at the rate of four per cent. of income tax including surcharge wherever applicable, in the cases of persons not resident in India including company other than a domestic company.
[Clauses 2, 37 & the First Schedule]
Full Text:
Deduction of income-tax at source: updated TDS structure for non-resident capital gains and non domestic companies. Part II of the First Schedule to the Finance Bill, 2024 prescribes FY 2024-25 rates for deduction of income-tax at source under specified sections; tax is to be deducted per the relevant statutory provisions. The rate for other income paid to a company that is not a domestic company is proposed to be reduced to thirtyfive percent. A revised table sets distinct TDS rates on capital gains for non-residents for transfers before and on or after 23rd July 2024. Other TDS rates generally remain as in the Finance Act, 2023. Surcharge is unchanged and Health and Education Cess remains at four percent for non-residents. of Press 'Enter' after typing page number.
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