Taxation of dividend now taxed in recipients' hands, replacing company-level dividend distribution tax and altering withholding rules.
Abolition of the dividend distribution tax (DDT) shifts taxation from companies to shareholders, repealing the prior company-level levy and the exemption for dividend receipts; dividends are now taxable in recipients' hands with distinct tax incidence for resident individuals, resident corporates and non-residents, adjusted withholding obligations, revived intra-group set-off relief limited to domestic-source dividends, constraints on interest deductibility against dividend income, and consequential interactions with buyback taxation and transfer pricing secondary adjustment provisions. (AI Summary)

Concessional corporate and individual tax regimes trade lower rates for surrender of many deductions, requiring case by case choice.
Two optional concessional corporate tax regimes provide lower fixed rates but bar numerous specified deductions and remove MAT applicability, making the election depend on whether chapter VI incentives apply; for individuals/HUFs an alternative slab structure offers lower rates only if the taxpayer forgoes a broad list of exemptions and deductions, with certain carryforward losses lapsing and TDS concessions available only upon employee intimation, so choice requires case specific computation. (AI Summary)

Deduction under Section 43B(f) now allowable only on actual payment, limiting mercantile accounting claims for leave encashment liabilities.
The provision requires that deductions for leave encashment be allowed only on actual payment rather than on mere provision, thereby restricting mercantile accounting autonomy for tax computation. The legislative amendment operates prospectively to regulate the timing of deductions without altering the underlying liability's character, and such a regulatory measure falls within legislative discretion to protect public revenue and align with other specified deduction requirements. (AI Summary)