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    NewsBills
    Section 194B - Winnings from lottery or crossword puzzle
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    Tax deduction on lottery winnings now triggers per single transaction rather than by annual aggregation.
    The Finance Bill, 2025 amends Section 194B to remove the aggregate-year threshold and instead require tax withholding on each single transaction that exceeds the statutory threshold, changing the trigger for deduction from annual aggregation to per-transaction basis; this amendment takes effect from 1 April 2025 (Clause 54).
    NewsBills
    Section 194BB - Winnings from horse race
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    Tax deduction on horse race winnings: threshold now applies per single payout, altering withholding obligation at payment.
    Section 194BB requires a bookmaker or licensed person paying horse-race winnings to deduct tax at source at the rates in force at the time of payment. The Finance Bill 2025 removes the aggregate-year threshold and makes the deduction requirement apply where a single transaction exceeds the threshold, shifting the test from annual aggregation to single-transaction application.
    NewsBills
    Section 194D – Insurance commission
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    Insurance commission TDS threshold raised, reducing mandatory withholding on smaller commission payments from the Bill's effective financial year.
    Section 194D requires deduction of income-tax at source on remuneration or reward for soliciting or procuring insurance business paid to a resident where payments in a financial year exceed a prescribed threshold. The Finance Bill, 2025 raises that threshold, reducing the instances where TDS is required, and makes the amendment effective from the commencement of the specified financial year.
    NewsBills
    Section 194G - Commission, etc., on sale of lottery tickets.
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    TDS on lottery commissions: threshold raised, reducing instances of deduction at source; new rule effective next fiscal year.
    Amendment to Section 194G raises the monetary threshold that triggers a two percent TDS obligation on commission, remuneration or prize payments to persons engaged in stocking, distributing, purchasing or selling lottery tickets, thereby reducing instances where tax must be deducted at source. The two percent deduction rate remains unchanged, and the amendment takes effect from the commencement of the next fiscal year.
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    Section 194H - Commission or brokerage.
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    TDS on commission: threshold for deduction raised, narrowing scope of withholding for small payees next fiscal year
    Persons other than individuals and HUFs paying commission or brokerage to resident payees must deduct tax at source at a two percent rate where annual payments exceed the prescribed threshold; the Finance Bill proposes to raise that threshold, reducing the number of payments subject to deduction while excluding insurance commission treated under a separate provision, effective from the commencement of the relevant fiscal year.
    NewsBills
    Section 194-I – Rent
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    TDS on rent threshold lowered, expanding deduction requirement to monthly rent payments effective next fiscal year.
    The amendment expands the requirement to deduct tax at source on rent by replacing the prior annual exemption with a monthly (or part-month) threshold for payers other than individuals and HUFs; rent exceeding the specified monthly amount will attract withholding, and the change is effective from the start of the next fiscal year.
    NewsBills
    Section 194J - Fees for professional or technical services.
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    TDS on professional and technical fees: higher thresholds reduce mandatory withholding obligations from the next financial year.
    The Finance Bill increases the threshold for tax deduction at source on payments characterised as fees for professional services, fees for technical services, royalty and other specified sums made by persons other than individuals or HUFs; deductions are required only when aggregate payments in a financial year exceed the revised thresholds, with the amendment effective from the start of the specified financial year.
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    Section 194K – Income in respect of units
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    TDS on mutual fund unit income: threshold for mandatory deduction increased, narrowing instances where withholding is required.
    Persons paying income in respect of mutual fund units, administrators of specified undertakings, or specified companies must deduct tax at source at the prescribed rate only when the payee's income from such units exceeds the revised threshold; the amendment narrows the circumstances requiring deduction and applies prospectively from the effective date specified in the Finance Bill.
    NewsBills
    Section 194LA - Payment of compensation on acquisition of certain immovable property.
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    TDS on compensation for compulsory acquisition: deduction threshold raised while the deduction rate is retained, effective next fiscal April.
    Section 194LA requires tax deduction at source on compensation or enhanced compensation and consideration for compulsory acquisition of immovable property (other than agricultural land) where amounts in a financial year exceed the prescribed threshold. The Finance Bill, 2025 proposes to raise that threshold while retaining the existing deduction rate and mechanism; the amendment is to take effect from 1 April 2025.
    NewsBills
    Definition of “forest produce” rationalised
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    Definition of forest produce clarified to align with State Acts or Indian Forest Act, narrowing TCS scope to leased produce.
    The Finance Bill aligns the definition of forest produce with any State Act or the Indian Forest Act, 1927, to clarify TCS coverage; it confines TCS on "other forest produce" (excluding timber and tendu leaves) to items obtained under a forest lease, and sets TCS at two per cent for timber or other forest produce under lease and two per cent for timber obtained otherwise, effective from 1 April 2025.
    NewsBills
    Reduction in compliance burden by omission of TCS on sale of specified goods
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    Tax Collection at Source exemption removes duplicate TCS/TDS obligation, streamlining seller and buyer compliance from April 1, 2025.
    The Finance Bill proposes omission of the sub section imposing Tax Collection at Source by sellers on sale of specified goods where the buyer is liable to deduct Tax Deduction at Source, to prevent overlapping TCS/TDS obligations and ease compliance; the amendment takes effect from 1 April 2025.
    NewsBills
    Amendments proposed in provisions of Block assessment for search and requisition cases under Chapter...
    Show AI Summary
    Block assessment scope expanded to include virtual digital assets; computation, revival and timeline rules updated.
    Amendments bring virtual digital asset within the definition of undisclosed income for Chapter XIV-B; add "recomputation", "reference" and "order" to the list of proceedings that may revive if a Chapter XIV-B proceeding is annulled; replace "pending" with assessments "required to be made" for subsequent searches; amend computation rules to recognise undisclosed income declared in return and include returns filed before search or requisition for credit; exclude income from international or specified domestic transactions from block period income; and change the block assessment time limit to twelve months from the end of the quarter of the last authorisation.
    NewsBills
    Non-applicability of Section 271AAB of the Act
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    Non-applicability of penalty under section 271AAB clarified for searches under section 132 after block assessment introduction.
    The amendment provides that section 271AAB shall not apply to an assessee in whose case a search under section 132 was initiated on or after 1 September 2024, aligning the penalty provision with the block assessment regime introduced by the Finance Act, 2024 and removing any ambiguity about applicability; the amendment takes effect from 1 September 2024.
    NewsBills
    Amendments proposed in sections 132 and 132B for rationalising provisions
    Show AI Summary
    Search and seizure: uniform quarterly-based time limit for retention approvals and updated cross-references for execution definitions.
    The Bill amends section 132 to provide that the time limit for taking approval for retention of seized books of account or documents will be one month from the end of the quarter in which the assessment, reassessment or recomputation order is made, addressing administrative difficulties in group search cases. It also modifies Explanation 1 to section 132 to substitute "authorisation" with "authorisations", and updates Explanation 1 to section 132B to reference section 158B for the meaning of "execution of an authorisation for search or requisition".
    NewsBills
    Time limit to impose penalties rationalised
    Show AI Summary
    Limitation on penalty imposition extended to a uniform quarterly deadline after completion of connected proceedings or receipt of appeals.
    The amendment standardises the limitation for imposing penalties under Chapter XXI so that no penalty order may be passed after the expiry of six months from the end of the quarter in which the connected proceedings are completed, the appellate order is received by the jurisdictional Principal Commissioner or Commissioner, an order of revision is passed, or the notice for imposition of penalty is issued. A consequential amendment updates the cross-reference in section 246A. These changes take effect from 1 April 2025.
    NewsBills
    Clarification regarding commencement date and the end date of the period stayed by the Court
    Show AI Summary
    Stay period exclusion clarified: computation excludes from date stay granted until certified vacatur received by tax Commissioner.
    The amendment excludes from computation of statutory time limits the period beginning on the date a court stay is granted and ending on the date a certified copy of the order vacating that stay is received by the jurisdictional Principal Commissioner or Commissioner (or the Approving Panel where applicable).
    NewsBills
    Rationalisation of provisions related to carry forward of losses in case of amalgamation
    Show AI Summary
    Carryforward of losses limited to eight assessment years for predecessor losses in amalgamations, preventing loss evergreening.
    Sections 72A and 72AA are amended to provide that any accumulated loss of an original predecessor entity deemed to be the loss of the successor entity may be carried forward only for eight assessment years immediately succeeding the assessment year in which that loss was first computed for the original predecessor, aligning these provisions with section 72 and preventing evergreening through successive amalgamations.
    NewsBills
    Rationalisation of transfer pricing provisions for carrying out multi-year arm’s length price dete...
    Show AI Summary
    Multi-year transfer pricing: one ALP can apply to consecutive years, with TPO validation and AO recomputation.
    A voluntary multi-year transfer pricing option permits an ALP determined by the TPO for a transaction in a given previous year to apply to similar transactions in the immediately following consecutive years; the assessee must exercise a prescribed option, the TPO must validate it within a set period, and on validation the AO shall recompute total income for those years in conformity with the TPO's ALP while no fresh references for those transactions shall be permitted.
    NewsBills
    Removal of higher TDS/TCS for non-filers of return of income
    Show AI Summary
    Higher TDS/TCS for non-filers removed, easing withholding obligations and reducing verification and compliance burden for payors.
    The proposal omits provisions imposing higher rates of deduction and collection for non-filers of income-tax returns, responding to stakeholder concerns that payors face difficulty verifying filing status and bear increased compliance and capital blockage; the amendment is intended to simplify withholding obligations and reduce verification burdens, effective from the first day of April, 2025.
    NewsBills
    SOCIO ECONOMIC WELFARE MEASURES - Increase in the limits on the income of the employees for the purp...
    Show AI Summary
    Perquisite income threshold increase: employer-provided amenities and foreign medical travel may be exempt from perquisite treatment.
    Proposed amendment to section 17 would grant rulemaking power to increase the gross total income ceilings for treating employer-provided amenities and benefits as non-perquisites, and to raise the income limit excluding employer-funded foreign medical travel from perquisite treatment; the changes take effect from 1 April 2026 and apply to the subsequent assessment year.

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      Bills

      Rationalisation of provisions related to Sovereign Wealth Fund (SWF) and Pension Fund (PF)

      1 February, 2021

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      Budget 2021-22 + FINANCE Bill, 2021

      Rationalisation of provisions related to Sovereign Wealth Fund (SWF) and Pension Fund (PF)

      Clause (23FE) of section 10 of the Act provides for the exemption to specified persons from the income in the nature of dividend, interest or long-term capital gains arising from an investment made by it in India. Specified persons are SWF or PF which fulfils conditions prescribed therein and are specified for this purpose by the Central Government through notification in the Official Gazette. This provision was introduced through the Finance Act, 2020 to encourage investments of SWF and PF into infrastructure sector of India. Subsequent to enactment, a notification was also issued to enlarge the scope of infrastructure activities eligible for investments. One SWF has already been notified under this provision. In order to rationalise the provision of this clause and to remove the difficulties in meeting some of the conditions, the followings amendments are proposed in the Bill:

      • Allowing Alternate Investment Fund (AIF) to invest up to 50% in non-eligible investments

      Presently SWF/PFs may invest in a Category-I or Category-II Alternative Investment Fund, having 100% investment in eligible infrastructure company. It is proposed to:

      (a) relax the condition of 100% to 50%.

      (b) allow the investment by Category-I or Category-II AIF in an Infrastructure Investment Trust (InvIT).

      (c) Exemption under this clause shall be calculated proportionately, in case if aggregate investment of AIF in infrastructure company or companies or in InvIT is less than 100%.

      • Investment through holding company

      Presently, SWF/PFs are not allowed to invest through holding company. It is proposed to allow the same subject to the following conditions:

      (a) Holding company should be a domestic company.

      (b) It should be set up and registered on or after 1st April, 2021.

      (c) It should have minimum 75% investments in one or more infrastructure companies.

      (d) Exemption under this clause shall be calculated proportionately, in case if aggregate investment of holding company in infrastructure company or companies is less than 100%

      • Investment in NBFC- IDF/IFC (non-banking finance company-infrastructure debt fund/Infrastructure finance company)

      Presently, SWF/PFs are not allowed to invest in NBFC-IFC/IDF. It is proposed to allow the same subject to the following conditions:

      (a) NBFC-IDF/IFC should have minimum 90% lending to one or more infrastructure entities.

      (b) Exemption under this clause shall be calculated proportionately, in case if aggregate lending of NBFC-IDF or NBFC-IFC in infrastructure company or companies is less than 100%.

      • Loan or borrowings by SWF/Pension Fund

      Presently, SWF/PFs are not allowed to have loans or borrowings or deposit or investments as there is a condition that no benefit should enure to private person. It is proposed to provide that there should not be any loan or borrowing for the purpose of making investment in India. It is also proposed to provide that the condition regarding no benefit to private person and assets going to government on dissolution would not apply to any payment made to creditor or depositor for loan taken or borrowing other than for the purpose of making investment in India.

      • Commercial activity

      Presently, SWF/PFs are not allowed to undertake any commercial activity. This condition is proposed to be removed and replaced with a condition that SWF/PFs shall not participate in day to day operation of investee. However, appointing director and executive director for monitoring the investment would not amount to participation in day to day operation.The term "investee" is propoed to define to mean a business trust or a company or an enterprise or an entity or a category I or II Alternative Investment Fund or an Infrastructure Investment Trust or a domestic company or an Infrastructure Finance Company or an Infrastrure Debt Fund, in which the SWF or PF, as the case may be, has made the investment, directly or indirectly, under the provisions of this clause.

      • Liable to Tax

      Presently, some PFs are liable to tax in their country though given exemption subsequently. It is proposed to amend this sub-clause to provide that if pension fund is liable to tax but exemption from taxation for all its income has been provided by the foreign country under whose laws it is created or established, then such pension fund shall also be eligible.

      • Rules to prescribe the method of calculation

      It is also proposed to provide that the Central Government may prescribe the method of calculation of 50% or 75% or 90%referred above.

      This amendment will take effect from 1st April, 2021 and will accordingly apply to the assessment year 2021-22 and subsequent assessment years.

      [Clause 5]

       

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      Budget 2021-22 + FINANCE Bill, 2021

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