Full text of Nirmala Sitharaman’s budget 2024 speech
Budget 2024 Speech Full Text: In her speech, Sitharaman outlined the Modi 3.0's roadmap for transforming India into 'Viksit Bharat' by 2047. The Union Budget 2024 is the first major economic document of the Modi 3.0 government.
Union Finance Minister Nirmala Sitharaman presented the first budget of the Narendra Modi government’s third term on Tuesday in Parliament. This marks her seventh consecutive budget, surpassing the late Morarji Desai’s record of six consecutive budgets.
In her speech, Sitharaman outlined the Modi 3.0’s roadmap for transforming India into ‘Viksit Bharat’ by 2047. The Union Budget 2024 is the first major economic document of the Modi 3.0 government.
Union budgets aren’t exactly like household budgets because unlike the latter, they can influence the trajectory of the whole country. Apart from not overburdening people with increasing levels of borrowings and debt, a government can use the budget to influence the behaviour of Indian citizens and businesses in two broad ways. One is by tweaking who it taxes and how much and the second is by tweaking where a government spends and how much.
Hon’ble Speaker,
I present the Budget for 2024-25.
Introduction
Global Context
Interim Budget
Budget Theme
Budget Priorities
Priority 1: Productivity and resilience in Agriculture
Transforming agriculture research
Release of new varieties
Natural Farming
Missions for pulses and oilseeds
Vegetable production & Supply Chains
Digital Public Infrastructure for Agriculture
Shrimp Production & Export
National Cooperation Policy
Priority 2: Employment & Skilling
Employment Linked Incentive
Scheme A: First Timers
Scheme B: Job Creation in manufacturing
Scheme C: Support to employers
Participation of women in the workforce
Skilling programme
Skilling Loans
Education Loans
Priority 3: Inclusive Human Resource Development and Social Justice
Saturation approach
Purvodaya
Andhra Pradesh Reorganization Act
PM Awas Yojana
Women-led development
Pradhan Mantri Janjatiya Unnat Gram Abhiyan
Bank branches in North-Eastern Region
Priority 4: Manufacturing & Services
Support for promotion of MSMEs
Credit Guarantee Scheme for MSMEs in the Manufacturing Sector
New assessment model for MSME credit
Credit Support to MSMEs during Stress Period
Mudra Loans
Enhanced scope for mandatory onboarding in TReDS
SIDBI branches in MSME clusters
MSME Units for Food Irradiation, Quality & Safety Testing
E-Commerce Export Hubs
Measures for promotion of Manufacturing & Services
Internship in Top Companies
Industrial Parks
Rental Housing
Shipping industry
Critical Mineral Mission
Offshore mining of minerals
Digital Public Infrastructure Applications
Integrated Technology Platform for IBC eco-system
Voluntary closure of LLPs
National Company Law Tribunals
Debt Recovery
Priority 5: Urban Development
Cities as Growth Hubs
Creative redevelopment of cities
Transit Oriented Development
Urban Housing
Water Supply and Sanitation
Street Markets
Stamp Duty
Priority 6: Energy Security
Energy Transition
PM Surya Ghar Muft Bijli Yojana
Pumped Storage Policy
Research and development of small and modular nuclear reactors
Advanced Ultra Super Critical Thermal Power Plants
Roadmap for ‘hard to abate’ industries
Support to traditional micro and small industries
Priority 7: Infrastructure
Infrastructure investment by Central Government
Infrastructure investment by state governments
Private investment in infrastructure
Pradhan Mantri Gram Sadak Yojana (PMGSY)
Irrigation and Flood Mitigation
Tourism
Priority 8: Innovation, Research & Development
Space Economy
Priority 9: Next Generation Reforms
Economic Policy Framework
Land-related reforms by state governments
Rural Land related actions
Urban Land related actions
Labour related reforms
Services to Labour
Shram Suvidha & Samadhan Portal
Capital and entrepreneurship related reforms
Financial sector vision and strategy
Taxonomy for climate finance
Variable Capital Company structure
Foreign Direct Investment and Overseas Investment
NPS Vatsalya
Use of Technology
Ease of Doing Business
Data and Statistics
New Pension Scheme (NPS)
Budget Estimates 2024-25
I will, now, move to Part B.
PART B
Indirect Taxes
Medicines and Medical Equipment
Mobile Phone and Related Parts
Critical Minerals
Solar Energy
Marine products
Leather and Textile
Precious Metals
Other Metals
Electronics
Chemicals and Petrochemicals
Plastics
Telecommunication Equipment
Trade facilitation
Direct Taxes
Comprehensive Review of the Income-tax Act, 1961
Simplification for Charities and of TDS
Simplification of Reassessment
Simplification and Rationalisation of Capital Gains
Tax Payer Services
Litigation and Appeals
Employment and Investment
Deepening the tax base
Others
Personal Income Tax
As a result of these changes, a salaried employee in the new tax regime stands to save up to ₹ 17,500/- in income tax.
Jai Hind.
Annexure to Part – A
Prime Minister’s Package for Employment and Skilling
Coverage and Estimated Central Outlay
*Starting from third year
Outline of Schemes
[whichever is lower]
Note: Details of the schemes are subject to modification during the process of appraisal and approval.
Annexure to Part B
Amendments relating to Indirect Taxes
(i) Section 28 DA is being amended to enable the acceptance of different types of proof of origin provided in trade agreements in order to align the said section with new trade agreements which provide for self-certification.
(ii) A proviso to sub-section (1) of Section 65 is being inserted to empower the Central Government to specify certain manufacturing and other operations in relation to a class of goods that shall not be permitted in a warehouse.
(iii) The expression “a class of importers or exporters” is being substituted with “a class of importers or exporters or any other persons” in Section 143AA of the Customs Act for purposes of facilitating trade. Consequential changes are being carried out in clause (m) of subsection (2) of Section 157 of the Customs Act.
These changes shall come into effect from date of assent to the Finance (No.2) Bill
A.2 Amendments in the Customs Tariff Act, 1975
(i) Section 6 is being omitted on account of winding up of the Tariff Commission.
(ii) The First Schedule to the Customs Tariff Act, 1975 is being amended to,-
a) increase the rates on certain tariff items with effect from 24.07.2024.
b) create new tariff lines in respect of defence products, technical textiles, sustainable blended aviation fuel, products used in Indian semiconductor machines, e-bicycles, natural menthol, printer cartridge etc. This is to align the tariff lines with WCO classification and better identification of goods. These changes shall come into effect from 01.10.2024.
A.3 Amendment of Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995
The Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 have been amended to insert a provision for New Shipper Review. This will be effective from 24.07.2024.
[Save as otherwise provided, these changes will be brought into effect from a date to be notified in coordination with States, as per recommendations of the GST council]
B.1 Amendment to keep Extra Neutral Alcohol outside the purview of central tax:
Section 9 is being amended to take Extra Neutral Alcohol used in manufacture of alcoholic liquor for human consumption out of the purview of central tax. Similar amendments are also proposed in IGST Act and UTGST Act.
B.2 Amendment to regularize non-levy and short-levy of central tax due to general practice
Section 11A is being inserted to empower the government to regularize non-levy or short levy of central tax due to any general practice prevalent in trade. Similar power is being proposed in IGST Act, UTGST Act and GST (Compensation to States) Act.
B.3 Amendment to relax the time limits to avail input tax credit
New sub-sections (5) and (6) are being inserted in section 16 of CGST Act to relax the time limit to avail input tax credit as per section 16(4) of the CGST Act with effect from 01.07.2017, as follows:
a) In respect of initial years of implementation of GST, i.e., financial years 2017-18, 2018-19, 2019-20 and 2020-21:
In respect of an invoice or debit note for the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed upto the 30th day of November, 2021
b) with respect to cases where returns have been filed after revocation:
The time limit to avail input tax credit in respect of an invoice or debit note, in cases where returns for the period from the date of cancellation of registration/ effective date of cancellation of registration till the date of revocation of cancellation of the registration, will be extended till the date of filing the said GSTR-3B return, subject to certain conditions, if the said return is filed by the registered person within thirty days of the order of revocation of cancellation of registration.
B.4 Insertion of new section to provide a common time limit for issuance of demand notices and orders
Section 74A is being inserted in the CGST Act to provide a common time limit for issuance of demand notices and orders in respect of demands for FY 2024-25 onwards, for cases involving charges of fraud, suppression of facts or wilful misstatement and the cases not involving the charges of fraud, suppression of facts or wilful misstatement etc. Also, the time limit for the taxpayers to avail the benefit of reduced penalty, by paying the tax demanded along with interest, is being increased from 30 days to 60 days.
B.5 Amendment to reduce the maximum amount of pre-deposit for filing appeals
Sections 107 and 112 of CGST Act are being amended to reduce the maximum amount of pre-deposit for filing appeal with the Appellate Authority from Rs. 25 crore of central tax to Rs. 20 crore of central tax and to reduce the amount of pre-deposit for filing appeal with the Appellate Tribunal from 20% with a maximum amount of Rs. 50 crore of central tax to 10 % with a maximum of Rs. 20 crore of central tax. Besides, the time limit for filing appeals before the Appellate Tribunal is being modified w.e.f. 1st August, 2024 to avoid the appeals from getting time barred, on account of Appellate Tribunal not coming into operation.
B.6 Amendment to provide conditional waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods
Section 128A is being inserted in the CGST Act to provide for a conditional waiver of interest and penalty in respect of demands pertaining to financial years 2017-18, 2018-19 and 2019-20, in cases where demand notices have been issued under section 73 and full tax liability is paid by the taxpayer before a date to be notified.
B.7 Amendment to enable availment of the transitional credit of eligible CENVAT credit by Input Services Distributor in respect of invoices received prior to the appointed date
Section 140(7) of CGST Act is being amended with effect from 01.07.2017, to enable availment of transitional credit in respect of input services received by an Input Services Distributor prior to the appointed day, where invoices were also received prior to the appointed day.
B.8 Amendment to empower Government to notify Appellate Tribunal to handle anti-profiteering cases and to provide for a sunset clause for accepting anti-profiteering cases
Section 171 of CGST Act is being amended to enable the Government to notify the GST Appellate Tribunal to handle anti-profiteering cases and to empower the Government to notify a date after which the Authority for anti-profiteering shall not accept applications for examination.
B.9 Amendment to clarify various activities in insurance sector as neither a supply of goods nor a supply of services
Paragraphs 8 and 9 are being inserted in Schedule III of CGST Act to provide that the activity of apportionment of co-insurance premiums by the lead insurer to the co-insurers in the co-insurance agreement and the services by insurers to reinsurers in respect of ceding/re-insurance commission will, subject to certain conditions, be treated neither as a supply of goods nor as a supply of services.
OTHER LAW AMENDMENTS IN CGST ACT
B10. Amendment to clarify time of supply of services in reverse charge supplies.
Amendment is proposed in Section 13 of CGST Act to provide for time of supply of services where the invoice is required to be issued by the recipient of services in cases of reverse charge supplies.
B11. Amendment to restrict blockage of input tax credit for tax paid under section 74 to demands upto Financial Year 2023-24
Clause (i) of Section 17 of CGST Act is being amended to restrict blockage of input tax credit for tax paid under Section 74 for demands pertaining up to FY 2023-24.
B12. Amendment to provide for conditions and restrictions for revocation of cancellation of registration
Section 30 of the CGST Act is being amended to enable the government to prescribe conditions and restrictions for revocation of cancellation of registration.
B13. Amendment to prescribe the time period for issuance of invoice by recipient in Reverse Charge Mechanism supplies
Clause (f) of section 31 of CGST Act is being amended to provide for an enabling provision to prescribe the time period within which the invoice has to be issued by the recipient under reverse charge mechanism and to clarify that a person registered solely for purpose of deducting TDS under section 51 of CGST Act shall be treated as a person not registered for the purpose of clause (f) of section 31(3) of the said Act.
B14. Amendment to make filing of monthly returns by TDS deductors mandatory.
Section 39 is being amended to mandate filing of returns by TDS deductors for every month, even if no deductions are made during the said month, and also to provide for an enabling clause for prescribing the time limit for filing such returns.
B15. Amendment to prohibit refund in zero rated supply of goods where such goods are subjected to export duty.
Section 54 of CGST Act and section 16 of IGST Act are being amended to prohibit refund of unutilized input tax credit or integrated tax on zero-rated supply of goods, which are subjected to export duty.
B16. Amendment for allowing appearance by authorised representative on behalf of a summoned person
Sub-section 1A is being inserted in section 70 of the CGST Act to enable appearance by an authorized representative on behalf of a summoned person.
B17. Amendment to empower the government to notify cases which shall be heard only by the principal Bench of GST Appellate Tribunal
Section 109 of CGST Act is being amended to empower the government to specify cases to be heard only by the Principal Bench of the Appellate Tribunal.
B18. Amendment to restrict applicability of penal provisions under Section 122(1B) to Electronic Commerce Operators who deduct TCS
Section 122(1B) of CGST Act is being amended w.e.f. 01.10.2023 to restrict the applicability of penal provisions under this section to only those Electronic Commerce Operators who are required to collect tax at source under section 52.
B19. Consequential amendments due to insertion of new section 74A in the CGST Act
Sections 73 and 74 of CGST Act are being amended to limit the applicability of these sections to demands up to FY 2023-24, since from FY 2024-25 onwards demands are to be ascertained as per provisions of newly inserted section 74A. Also, Section 75 of CGST Act is being amended to allow for redetermination of penalties if the charges of fraud, suppression, or wilful misstatement are not established. Further, references to section 74A or the concerned sub-sections of section 74A are being inserted in section 10, section 21, section 35, section 49, section 50, section 51, section 62, section 63, section 64, section 65, section 66, section 104 and section 127.
Notification No. 37/2023- Customs dated 10.5.23 is being validated for the period from 1st April, 2023 up to and inclusive of 10th May,2023 to provide exemption from basic customs duty and AIDC on imports of crude soyabean oil and crude sunflower seed oil subject to availability of unutilized quota in TRQ authorization for FY 2022-23 allotted by DGFT and Bill of lading issued on or before 31st March,2023. The changes will come into effect from date of assent to the Finance (No.2) Bill 2024
Notification No 12/2012-Central Excise dated 17.3.2012 is being amended to extend the time period for submission of the final Mega Power Project certificate from 120 months to 156 months. The changes will come into effect from date of assent to the Finance (No.2) Bill 2024
The Clean Environment Cess , levied and collected as a duty of excise, is being exempted on excisable goods lying in stock as on 30th June, 2017 , subject to payment of appropriate GST Compensation Cess on supply of such goods on or after 1st July, 2017.The changes will come into effect from date of assent to the Finance (No.2) Bill 2024
Based on the recommendation of the GST Council in its 53rd meeting, GST Compensation Cess is being exempted with effect from 1st July, 2017 on imports in SEZ by SEZ units or developers for authorized operations. The changes will come into effect from date of assent to the Finance(No.2) Bill 2024
D.1. Reduction in customs duty to reduce input costs, deepen value addition, promote export competitiveness, correct inverted duty structure, boost domestic manufacturing etc [with effect from 24.07.2024]
(per cent)
(per cent)
(i) Mineral &vitamin pre mixes
(ii) Krill Meal
(iii) Fish lipid oil
(iv) Crude fish oil
(v) Algal prime (flour)
(vi) Algal oil
Live Black tiger shrimp (Penaeus monodon) broodstock
(ii) Silicon Dioxide
(ii) Osimertinib
(iii) Durvalumab
(till 31.03.2025)
7.5
(1.4.2025 to 31.3.2026)
10
(1.4.2026 onwards)
D.2. Increase in Customs duty [with effect from 24.07.2024]
(per cent)
(per cent)
(w.e.f 1.10.24)
(w.e.f 1.10.24)
D.3. Increase in tariff rate with no change in effective duty rate [With effect from 01.10.2024]
(per cent)
(per cent)
D.4 Rationalization of Export duty on Raw hides, skins and leather [with effect from 24.07.2024]
(per cent)
(per cent)
The time-period of duty free re-import of goods (other than those under export promotion schemes) exported out under warranty from India has been increased from 3 years to 5 years, further extendable by 2 years.
E.2. Increase in duration for export of articles of foreign origin imported into India for repairs
Currently, articles of foreign origin can be imported into India for repairs subject to their re-exportation within six months extendable upto 1 year. The duration for export in the case of aircraft and vessels imported for maintenance, repair and overhauling has been increased from 6 months to 1 year, further extendable by 1 year.
There are few other changes of minor nature. For details of the budget proposals, the Explanatory Memorandum and other relevant budget documents may be referred to.
Annexure to Part B
Amendments relating to Direct Taxes
A.2 Standard deduction: Standard deduction to salaried individuals and pensioners is proposed to be increased from `50,000 to
` 75,000 under the new tax regime.
A.3 Family pension deduction: Deduction from family pension of
` 15,000 is proposed to be increased to ` 25,000 under the new tax regime.
A.4 Non-government employer contribution to New Pension scheme: It is proposed to increase the amount of deduction allowed to an employer in respect of his contribution to a pension scheme referred to in section 80CCD, from the extent of 10% to the extent of 14% of the salary of the employee. Further, a non-government employee in the new tax regime shall be allowed deduction of an amount not exceeding 14% of the employee’s salary in place of 10%.
· It is proposed that retail schemes and Exchange Traded Funds in IFSC, shall enjoy tax exemptions along similar lines as available to specified funds.
· It is further proposed to exempt certain income of Core Settlement Guarantee Fund set up in IFSC.
· It is proposed to exclude the applicability of section 94B to certain finance companies located in IFSC.
· It is proposed that where a venture capital fund (VCF) located in IFSC extends a loan / other amount to an assessee, it shall no longer be called upon to explain the source of funds.
· Further, it is proposed that surcharge shall not apply on income-tax payable on income from securities by specified funds.
B.2 Reduction of rate of foreign companies to 35 per cent: It is proposed to reduce the rate of income-tax chargeable on income of foreign company (other than that chargeable at special rates) from 40 per cent to 35 per cent.
B.3 Tax on share premium: It is proposed that the provisions of clause (viib) of sub-section (2) of section 56 of the Act related to tax on share premium of private companies shall not apply from the financial year 2024-25.
B.4 Scheme of presumptive taxation for cruise ship operations by non-residents: It is proposed to put in place a presumptive taxation regime for cruise ship operations of non-residents. Further, it is proposed to provide exemption for any income of a foreign company from lease rentals of cruise ships, received from a related company which operates such ship or ships in India.
C.2 Reducing the time-limit for which reassessment can be done and rationalisation of the provisions: Time limit for reassessment is proposed to be reduced from ten years to five years. Further, there are proposals to rationalise the procedure for reassessment. Further, it is proposed to omit reference to Principal Chief Commissioner or Chief Commissioner in section 275 to provide clarity of time limitation for imposition of penalties. It is also proposed to withhold refund up to sixty days of assessment under section 245 and to rationalise time limit to file appeal to ITAT under section 253.
C.3 Charitable trusts/ Institutions
It is proposed to make amendments to merge the two schemes for exemption and also provide for rationalisation of filing of applications and the timelines for registration and approval of certain benefits to charitable trusts and institutions.
C.4 Simplification of taxation of Capital Gains: The taxation of capital gains is proposed to be rationalised and simplified.
Short term gains on specified financial assets shall henceforth attract a tax rate of 20 per cent instead of 15 per cent, while that on all other financial assets and non-financial assets shall continue to attract the applicable tax rate.
Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, it is proposed to increase the limit of exemption of capital gains on certain listed financial assets from ₹ 1 lakh to ₹ 1.25 lakh per year.
Listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term.
Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates.
These proposals are proposed to be given effect with immediate force.
C.5 Rationalisation of tax deducted at source (TDS) rates: It is proposed to bring down TDS rates from 5 per cent to 2 per cent in certain sections and omit section 194F where TDS rate is 20 per cent, as given below:
C.6 Credit of TDC and TCS: It is proposed to allow credit of all tax deducted or collected while computing the amount of tax to be deducted on salary income under section 192.
C.7 Claiming credit for TCS of minor in the hands of parent: It is proposed to empower the Board to make rules to provide credit of tax collected to person other than collectee.
C.8 Alignment of interest rate on delayed payment on TCS with TDS: It is proposed to increase the rate of simple interest from 1 per cent to 1.5 per cent on delayed payments of TCS after collection, as in the case of TDS.
C.9 Increase in limit of remuneration to working partners of a firm allowed as deduction: It is proposed to increase the limit of remuneration to working partners to ` 3,00,000 or 90 per cent of the book-profit, whichever is more, on the first `6,00,000 of the book-profit or in case of a loss.
D.2 Securities transaction tax (STT) rates: It is proposed to increase the rates of STT on sale of an option in securities from 0.0625 per cent to 0.1 per cent of the option premium, and on sale of a futures in securities from 0.0125 per cent to 0.02 per cent of the price at which such futures are traded.
D.3 Income from letting out of house property: It is proposed that income from letting out of a house or part of the house by the owner, shall not be charged under the head ‘profits and gains of business or profession’ and will be chargeable to tax under the head ‘income from house property’ only.
D.4 Transfer of capital asset: It is proposed to provide that the transfer of a capital asset, under a gift or will or an irrevocable trust, by an entity other than an individual or a Hindu undivided family (HUF) only, shall be regarded as transfer for the purpose of calculation of capital gain.
D.5 TDS on payment to a partner: It is proposed that payments made by firm to its partner in the nature of salary, remuneration, commission, bonus and interest, etc shall be subject to TDS at the rate of 10 per cent for aggregate amounts more than ` 20,000 in a financial year.
D.6 TCS on notified luxury goods: To enable TCS on luxury goods, it is proposed to levy TCS of 1 per cent on notified goods of value exceeding ten lakh rupees.
D.7 TDS on sale of immovable property: It is proposed to clarify that where there is more than one transferor or transferee in respect of an immovable property, then such consideration for transfer of the immovable property shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property.
D.8 TDS on Floating Rate Savings (Taxable) Bonds (FRSB) 2020: TDS is proposed on interest exceeding ten thousand rupees on Floating Rate Savings (Taxable) Bonds (FRSB) 2020 or any other notified security of the Central or State Governments.
D.9 Inadmissibility of non-business expenditure by life insurance companies: It is proposed to provide that any expenditure which is not admissible under the provisions of section 37 in computing the profits and gains of a business shall be included to the profits and gains of the life insurance business.
D.10 Inclusion of taxes withheld outside India for purposes of calculating total income: It is proposed to provide that income tax paid outside India by way of deduction is deemed to be income received for the purpose of computing the income of the assessee.
D.11 Excluding income mentioned in section 194J from applicability of section 194C: It is proposed to explicitly state that any sum referred to in sub-section (1) of section 194J (fees for professional or technical services) does not constitute “work” for the purposes of TDS under section 194C (payments to contractors).
D.12 Claim of settlement amounts as business expenditure: It is proposed to disallow expenses incurred as settlement fees for any contravention of law, as may be notified by the Central Government.
D.13 Definition of Fair Market Value (FMV): It is proposed to provide for a method of calculation of fair market value on 31.01.18 under section 55(2) (ac) in the case of sale of unlisted equity shares in an offer for sale in an initial public offer.
E.2 Equalisation Levy: It is proposed that Equalisation Levy at the rate of 2 per cent of consideration received for e-commerce supply of goods or services, shall no longer be applicable on or after 1st August, 2024.
E.3 Non-reporting of small foreign assets has penal consequences under the Black Money Act. Such non-reporting of movable assets up to ₹ 20 lakh is proposed to be de-penalised.
E.4 It is proposed to decriminalize late payment of tax deducted at source (TDS) , if the payment is made before the time prescribed for filing the TDS statement.
E.5 It is proposed to provide that no order for failure to deduct/ collect tax from any person shall be passed after the expiry of six years from the end of the financial year in which payment is made.
E.6 Enabling processing of statements other than those filed by deductors: It is proposed to provide that the Board may make a scheme for processing of such statements.
E.7 Lower deduction / collection certificate of tax at source: It is proposed to allow for application for lower deduction / collection certificate of tax for section 194Q (TDS on payment for purchase of goods) and sub-section (1H) of section 206C (TCS on receipt of sale of goods).
E.8 Notification of certain persons or class of persons as exempt from TCS: It is proposed to empower the government to notify persons or class of persons from whom no collection of tax shall be made or collection of tax shall be made at a lower rate in respect of specified transactions.
E.9 Time limit to file correction statement for TDS/TCS statements: It is proposed to provide that no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the TDS/TCS statement are respectively required to be delivered.
E.10 Penalty for failure to furnish statements: It is proposed to provide for penalty on late furnishing of TDS or TCS statement beyond one month instead of the existing period of 12 months.
E.11 It is proposed to prescribe the period within which annual statement of activities of a liaison office is required to be furnished. It is further proposed to provide for penalty on failure of submission of annual statement within the due period.
E.12 It is proposed to enable the Transfer Pricing Officer to deal with specified domestic transactions which have not been referred to him by the Assessing Officer.
E.13 It is proposed to discontinue the quoting of Aadhaar Enrolment ID in place of Aadhaar number.
E.14 It is proposed to provide those applications before the Board for Advance Rulings transferred from Authority of Advance Rulings may be allowed to be withdrawn before 31.10.2024.
E.15 It is proposed to empower Commissioner (Appeals) to set aside ex-parte assessment orders.
E.16 Amendment in Section 271FAA: It is proposed to amend section 271FAA to provide for a penalty on failure to comply with due diligence requirement relating to compliance with Automatic Exchange of Information (AEOI).
E.17 Tax Clearance Certificate: It is proposed to include reference of Black Money Act, 2015 for the purposes of obtaining a tax clearance certificate.
E.18 Returns filed after condonation of delay: It is proposed that in respect of returns filed after condonation of delay, the assessment can be made up to 12 months from the end of the financial year in which such return was furnished.
E.19 Donations to National Sports Development Fund: Any sums paid as donations to the National Sports Fund set up by the Central Government are presently eligible for deduction under section 80G. The name of the fund is proposed to be corrected as National Sports Development Fund.
E.20 Removing reference to National Housing Board: As housing finance companies are now under the purview of the Reserve Bank of India as a category of Non-Banking Financial Companies (NBFCs), it is proposed to remove reference to National Housing Board in section 43D of the Act.
E.21 Adjusting liability under Black Money Act, 2015 against seized assets: It is proposed to insert reference of Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 in the section 132B of the Income-tax Act, 1961 so as to enable recovery of liabilities under the Act out of seized assets.
E.22 Amendments to the Prohibition of Benami Property Transactions Act, 1988: It is proposed to provide immunity from penalty and prosecution to benamidar on full and true disclosure. It is also proposed to rationalize time limits for attachment of property and reference to adjudicating authority.
Union Finance Minister Nirmala Sitharaman presented the first budget of the Narendra Modi government’s third term on Tuesday in Parliament. This marks her seventh consecutive budget, surpassing the late Morarji Desai’s record of six consecutive budgets.
In her speech, Sitharaman outlined the Modi 3.0’s roadmap for transforming India into ‘Viksit Bharat’ by 2047. The Union Budget 2024 is the first major economic document of the Modi 3.0 government.
Union budgets aren’t exactly like household budgets because unlike the latter, they can influence the trajectory of the whole country. Apart from not overburdening people with increasing levels of borrowings and debt, a government can use the budget to influence the behaviour of Indian citizens and businesses in two broad ways. One is by tweaking who it taxes and how much and the second is by tweaking where a government spends and how much.
Hon’ble Speaker,
I present the Budget for 2024-25.
Introduction
Global Context
Interim Budget
Budget Theme
Budget Priorities
Priority 1: Productivity and resilience in Agriculture
Transforming agriculture research
Release of new varieties
Natural Farming
Missions for pulses and oilseeds
Vegetable production & Supply Chains
Digital Public Infrastructure for Agriculture
Shrimp Production & Export
National Cooperation Policy
Priority 2: Employment & Skilling
Employment Linked Incentive
Scheme A: First Timers
Scheme B: Job Creation in manufacturing
Scheme C: Support to employers
Participation of women in the workforce
Skilling programme
Skilling Loans
Education Loans
Priority 3: Inclusive Human Resource Development and Social Justice
Saturation approach
Purvodaya
Andhra Pradesh Reorganization Act
PM Awas Yojana
Women-led development
Pradhan Mantri Janjatiya Unnat Gram Abhiyan
Bank branches in North-Eastern Region
Priority 4: Manufacturing & Services
Support for promotion of MSMEs
Credit Guarantee Scheme for MSMEs in the Manufacturing Sector
New assessment model for MSME credit
Credit Support to MSMEs during Stress Period
Mudra Loans
Enhanced scope for mandatory onboarding in TReDS
SIDBI branches in MSME clusters
MSME Units for Food Irradiation, Quality & Safety Testing
E-Commerce Export Hubs
Measures for promotion of Manufacturing & Services
Internship in Top Companies
Industrial Parks
Rental Housing
Shipping industry
Critical Mineral Mission
Offshore mining of minerals
Digital Public Infrastructure Applications
Integrated Technology Platform for IBC eco-system
Voluntary closure of LLPs
National Company Law Tribunals
Debt Recovery
Priority 5: Urban Development
Cities as Growth Hubs
Creative redevelopment of cities
Transit Oriented Development
Urban Housing
Water Supply and Sanitation
Street Markets
Stamp Duty
Priority 6: Energy Security
Energy Transition
PM Surya Ghar Muft Bijli Yojana
Pumped Storage Policy
Research and development of small and modular nuclear reactors
Advanced Ultra Super Critical Thermal Power Plants
Roadmap for ‘hard to abate’ industries
Support to traditional micro and small industries
Priority 7: Infrastructure
Infrastructure investment by Central Government
Infrastructure investment by state governments
Private investment in infrastructure
Pradhan Mantri Gram Sadak Yojana (PMGSY)
Irrigation and Flood Mitigation
Tourism
Priority 8: Innovation, Research & Development
Space Economy
Priority 9: Next Generation Reforms
Economic Policy Framework
Land-related reforms by state governments
Rural Land related actions
Urban Land related actions
Labour related reforms
Services to Labour
Shram Suvidha & Samadhan Portal
Capital and entrepreneurship related reforms
Financial sector vision and strategy
Taxonomy for climate finance
Variable Capital Company structure
Foreign Direct Investment and Overseas Investment
NPS Vatsalya
Use of Technology
Ease of Doing Business
Data and Statistics
New Pension Scheme (NPS)
Budget Estimates 2024-25
I will, now, move to Part B.
PART B
Indirect Taxes
Medicines and Medical Equipment
Mobile Phone and Related Parts
Critical Minerals
Solar Energy
Marine products
Leather and Textile
Precious Metals
Other Metals
Electronics
Chemicals and Petrochemicals
Plastics
Telecommunication Equipment
Trade facilitation
Direct Taxes
Comprehensive Review of the Income-tax Act, 1961
Simplification for Charities and of TDS
Simplification of Reassessment
Simplification and Rationalisation of Capital Gains
Tax Payer Services
Litigation and Appeals
Employment and Investment
Deepening the tax base
Others
Personal Income Tax
As a result of these changes, a salaried employee in the new tax regime stands to save up to ₹ 17,500/- in income tax.
Jai Hind.
Annexure to Part – A
Prime Minister’s Package for Employment and Skilling
Coverage and Estimated Central Outlay
*Starting from third year
Outline of Schemes
[whichever is lower]
Note: Details of the schemes are subject to modification during the process of appraisal and approval.
Annexure to Part B
Amendments relating to Indirect Taxes
(i) Section 28 DA is being amended to enable the acceptance of different types of proof of origin provided in trade agreements in order to align the said section with new trade agreements which provide for self-certification.
(ii) A proviso to sub-section (1) of Section 65 is being inserted to empower the Central Government to specify certain manufacturing and other operations in relation to a class of goods that shall not be permitted in a warehouse.
(iii) The expression “a class of importers or exporters” is being substituted with “a class of importers or exporters or any other persons” in Section 143AA of the Customs Act for purposes of facilitating trade. Consequential changes are being carried out in clause (m) of subsection (2) of Section 157 of the Customs Act.
These changes shall come into effect from date of assent to the Finance (No.2) Bill
A.2 Amendments in the Customs Tariff Act, 1975
(i) Section 6 is being omitted on account of winding up of the Tariff Commission.
(ii) The First Schedule to the Customs Tariff Act, 1975 is being amended to,-
a) increase the rates on certain tariff items with effect from 24.07.2024.
b) create new tariff lines in respect of defence products, technical textiles, sustainable blended aviation fuel, products used in Indian semiconductor machines, e-bicycles, natural menthol, printer cartridge etc. This is to align the tariff lines with WCO classification and better identification of goods. These changes shall come into effect from 01.10.2024.
A.3 Amendment of Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995
The Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 have been amended to insert a provision for New Shipper Review. This will be effective from 24.07.2024.
[Save as otherwise provided, these changes will be brought into effect from a date to be notified in coordination with States, as per recommendations of the GST council]
B.1 Amendment to keep Extra Neutral Alcohol outside the purview of central tax:
Section 9 is being amended to take Extra Neutral Alcohol used in manufacture of alcoholic liquor for human consumption out of the purview of central tax. Similar amendments are also proposed in IGST Act and UTGST Act.
B.2 Amendment to regularize non-levy and short-levy of central tax due to general practice
Section 11A is being inserted to empower the government to regularize non-levy or short levy of central tax due to any general practice prevalent in trade. Similar power is being proposed in IGST Act, UTGST Act and GST (Compensation to States) Act.
B.3 Amendment to relax the time limits to avail input tax credit
New sub-sections (5) and (6) are being inserted in section 16 of CGST Act to relax the time limit to avail input tax credit as per section 16(4) of the CGST Act with effect from 01.07.2017, as follows:
a) In respect of initial years of implementation of GST, i.e., financial years 2017-18, 2018-19, 2019-20 and 2020-21:
In respect of an invoice or debit note for the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21, the registered person shall be entitled to take input tax credit in any return under section 39 which is filed upto the 30th day of November, 2021
b) with respect to cases where returns have been filed after revocation:
The time limit to avail input tax credit in respect of an invoice or debit note, in cases where returns for the period from the date of cancellation of registration/ effective date of cancellation of registration till the date of revocation of cancellation of the registration, will be extended till the date of filing the said GSTR-3B return, subject to certain conditions, if the said return is filed by the registered person within thirty days of the order of revocation of cancellation of registration.
B.4 Insertion of new section to provide a common time limit for issuance of demand notices and orders
Section 74A is being inserted in the CGST Act to provide a common time limit for issuance of demand notices and orders in respect of demands for FY 2024-25 onwards, for cases involving charges of fraud, suppression of facts or wilful misstatement and the cases not involving the charges of fraud, suppression of facts or wilful misstatement etc. Also, the time limit for the taxpayers to avail the benefit of reduced penalty, by paying the tax demanded along with interest, is being increased from 30 days to 60 days.
B.5 Amendment to reduce the maximum amount of pre-deposit for filing appeals
Sections 107 and 112 of CGST Act are being amended to reduce the maximum amount of pre-deposit for filing appeal with the Appellate Authority from Rs. 25 crore of central tax to Rs. 20 crore of central tax and to reduce the amount of pre-deposit for filing appeal with the Appellate Tribunal from 20% with a maximum amount of Rs. 50 crore of central tax to 10 % with a maximum of Rs. 20 crore of central tax. Besides, the time limit for filing appeals before the Appellate Tribunal is being modified w.e.f. 1st August, 2024 to avoid the appeals from getting time barred, on account of Appellate Tribunal not coming into operation.
B.6 Amendment to provide conditional waiver of interest or penalty or both relating to demands raised under section 73, for certain tax periods
Section 128A is being inserted in the CGST Act to provide for a conditional waiver of interest and penalty in respect of demands pertaining to financial years 2017-18, 2018-19 and 2019-20, in cases where demand notices have been issued under section 73 and full tax liability is paid by the taxpayer before a date to be notified.
B.7 Amendment to enable availment of the transitional credit of eligible CENVAT credit by Input Services Distributor in respect of invoices received prior to the appointed date
Section 140(7) of CGST Act is being amended with effect from 01.07.2017, to enable availment of transitional credit in respect of input services received by an Input Services Distributor prior to the appointed day, where invoices were also received prior to the appointed day.
B.8 Amendment to empower Government to notify Appellate Tribunal to handle anti-profiteering cases and to provide for a sunset clause for accepting anti-profiteering cases
Section 171 of CGST Act is being amended to enable the Government to notify the GST Appellate Tribunal to handle anti-profiteering cases and to empower the Government to notify a date after which the Authority for anti-profiteering shall not accept applications for examination.
B.9 Amendment to clarify various activities in insurance sector as neither a supply of goods nor a supply of services
Paragraphs 8 and 9 are being inserted in Schedule III of CGST Act to provide that the activity of apportionment of co-insurance premiums by the lead insurer to the co-insurers in the co-insurance agreement and the services by insurers to reinsurers in respect of ceding/re-insurance commission will, subject to certain conditions, be treated neither as a supply of goods nor as a supply of services.
OTHER LAW AMENDMENTS IN CGST ACT
B10. Amendment to clarify time of supply of services in reverse charge supplies.
Amendment is proposed in Section 13 of CGST Act to provide for time of supply of services where the invoice is required to be issued by the recipient of services in cases of reverse charge supplies.
B11. Amendment to restrict blockage of input tax credit for tax paid under section 74 to demands upto Financial Year 2023-24
Clause (i) of Section 17 of CGST Act is being amended to restrict blockage of input tax credit for tax paid under Section 74 for demands pertaining up to FY 2023-24.
B12. Amendment to provide for conditions and restrictions for revocation of cancellation of registration
Section 30 of the CGST Act is being amended to enable the government to prescribe conditions and restrictions for revocation of cancellation of registration.
B13. Amendment to prescribe the time period for issuance of invoice by recipient in Reverse Charge Mechanism supplies
Clause (f) of section 31 of CGST Act is being amended to provide for an enabling provision to prescribe the time period within which the invoice has to be issued by the recipient under reverse charge mechanism and to clarify that a person registered solely for purpose of deducting TDS under section 51 of CGST Act shall be treated as a person not registered for the purpose of clause (f) of section 31(3) of the said Act.
B14. Amendment to make filing of monthly returns by TDS deductors mandatory.
Section 39 is being amended to mandate filing of returns by TDS deductors for every month, even if no deductions are made during the said month, and also to provide for an enabling clause for prescribing the time limit for filing such returns.
B15. Amendment to prohibit refund in zero rated supply of goods where such goods are subjected to export duty.
Section 54 of CGST Act and section 16 of IGST Act are being amended to prohibit refund of unutilized input tax credit or integrated tax on zero-rated supply of goods, which are subjected to export duty.
B16. Amendment for allowing appearance by authorised representative on behalf of a summoned person
Sub-section 1A is being inserted in section 70 of the CGST Act to enable appearance by an authorized representative on behalf of a summoned person.
B17. Amendment to empower the government to notify cases which shall be heard only by the principal Bench of GST Appellate Tribunal
Section 109 of CGST Act is being amended to empower the government to specify cases to be heard only by the Principal Bench of the Appellate Tribunal.
B18. Amendment to restrict applicability of penal provisions under Section 122(1B) to Electronic Commerce Operators who deduct TCS
Section 122(1B) of CGST Act is being amended w.e.f. 01.10.2023 to restrict the applicability of penal provisions under this section to only those Electronic Commerce Operators who are required to collect tax at source under section 52.
B19. Consequential amendments due to insertion of new section 74A in the CGST Act
Sections 73 and 74 of CGST Act are being amended to limit the applicability of these sections to demands up to FY 2023-24, since from FY 2024-25 onwards demands are to be ascertained as per provisions of newly inserted section 74A. Also, Section 75 of CGST Act is being amended to allow for redetermination of penalties if the charges of fraud, suppression, or wilful misstatement are not established. Further, references to section 74A or the concerned sub-sections of section 74A are being inserted in section 10, section 21, section 35, section 49, section 50, section 51, section 62, section 63, section 64, section 65, section 66, section 104 and section 127.
Notification No. 37/2023- Customs dated 10.5.23 is being validated for the period from 1st April, 2023 up to and inclusive of 10th May,2023 to provide exemption from basic customs duty and AIDC on imports of crude soyabean oil and crude sunflower seed oil subject to availability of unutilized quota in TRQ authorization for FY 2022-23 allotted by DGFT and Bill of lading issued on or before 31st March,2023. The changes will come into effect from date of assent to the Finance (No.2) Bill 2024
Notification No 12/2012-Central Excise dated 17.3.2012 is being amended to extend the time period for submission of the final Mega Power Project certificate from 120 months to 156 months. The changes will come into effect from date of assent to the Finance (No.2) Bill 2024
The Clean Environment Cess , levied and collected as a duty of excise, is being exempted on excisable goods lying in stock as on 30th June, 2017 , subject to payment of appropriate GST Compensation Cess on supply of such goods on or after 1st July, 2017.The changes will come into effect from date of assent to the Finance (No.2) Bill 2024
Based on the recommendation of the GST Council in its 53rd meeting, GST Compensation Cess is being exempted with effect from 1st July, 2017 on imports in SEZ by SEZ units or developers for authorized operations. The changes will come into effect from date of assent to the Finance(No.2) Bill 2024
D.1. Reduction in customs duty to reduce input costs, deepen value addition, promote export competitiveness, correct inverted duty structure, boost domestic manufacturing etc [with effect from 24.07.2024]
(per cent)
(per cent)
(i) Mineral &vitamin pre mixes
(ii) Krill Meal
(iii) Fish lipid oil
(iv) Crude fish oil
(v) Algal prime (flour)
(vi) Algal oil
Live Black tiger shrimp (Penaeus monodon) broodstock
(ii) Silicon Dioxide
(ii) Osimertinib
(iii) Durvalumab
(till 31.03.2025)
7.5
(1.4.2025 to 31.3.2026)
10
(1.4.2026 onwards)
D.2. Increase in Customs duty [with effect from 24.07.2024]
(per cent)
(per cent)
(w.e.f 1.10.24)
(w.e.f 1.10.24)
D.3. Increase in tariff rate with no change in effective duty rate [With effect from 01.10.2024]
(per cent)
(per cent)
D.4 Rationalization of Export duty on Raw hides, skins and leather [with effect from 24.07.2024]
(per cent)
(per cent)
The time-period of duty free re-import of goods (other than those under export promotion schemes) exported out under warranty from India has been increased from 3 years to 5 years, further extendable by 2 years.
E.2. Increase in duration for export of articles of foreign origin imported into India for repairs
Currently, articles of foreign origin can be imported into India for repairs subject to their re-exportation within six months extendable upto 1 year. The duration for export in the case of aircraft and vessels imported for maintenance, repair and overhauling has been increased from 6 months to 1 year, further extendable by 1 year.
There are few other changes of minor nature. For details of the budget proposals, the Explanatory Memorandum and other relevant budget documents may be referred to.
Annexure to Part B
Amendments relating to Direct Taxes
A.2 Standard deduction: Standard deduction to salaried individuals and pensioners is proposed to be increased from `50,000 to
` 75,000 under the new tax regime.
A.3 Family pension deduction: Deduction from family pension of
` 15,000 is proposed to be increased to ` 25,000 under the new tax regime.
A.4 Non-government employer contribution to New Pension scheme: It is proposed to increase the amount of deduction allowed to an employer in respect of his contribution to a pension scheme referred to in section 80CCD, from the extent of 10% to the extent of 14% of the salary of the employee. Further, a non-government employee in the new tax regime shall be allowed deduction of an amount not exceeding 14% of the employee’s salary in place of 10%.
· It is proposed that retail schemes and Exchange Traded Funds in IFSC, shall enjoy tax exemptions along similar lines as available to specified funds.
· It is further proposed to exempt certain income of Core Settlement Guarantee Fund set up in IFSC.
· It is proposed to exclude the applicability of section 94B to certain finance companies located in IFSC.
· It is proposed that where a venture capital fund (VCF) located in IFSC extends a loan / other amount to an assessee, it shall no longer be called upon to explain the source of funds.
· Further, it is proposed that surcharge shall not apply on income-tax payable on income from securities by specified funds.
B.2 Reduction of rate of foreign companies to 35 per cent: It is proposed to reduce the rate of income-tax chargeable on income of foreign company (other than that chargeable at special rates) from 40 per cent to 35 per cent.
B.3 Tax on share premium: It is proposed that the provisions of clause (viib) of sub-section (2) of section 56 of the Act related to tax on share premium of private companies shall not apply from the financial year 2024-25.
B.4 Scheme of presumptive taxation for cruise ship operations by non-residents: It is proposed to put in place a presumptive taxation regime for cruise ship operations of non-residents. Further, it is proposed to provide exemption for any income of a foreign company from lease rentals of cruise ships, received from a related company which operates such ship or ships in India.
C.2 Reducing the time-limit for which reassessment can be done and rationalisation of the provisions: Time limit for reassessment is proposed to be reduced from ten years to five years. Further, there are proposals to rationalise the procedure for reassessment. Further, it is proposed to omit reference to Principal Chief Commissioner or Chief Commissioner in section 275 to provide clarity of time limitation for imposition of penalties. It is also proposed to withhold refund up to sixty days of assessment under section 245 and to rationalise time limit to file appeal to ITAT under section 253.
C.3 Charitable trusts/ Institutions
It is proposed to make amendments to merge the two schemes for exemption and also provide for rationalisation of filing of applications and the timelines for registration and approval of certain benefits to charitable trusts and institutions.
C.4 Simplification of taxation of Capital Gains: The taxation of capital gains is proposed to be rationalised and simplified.
Short term gains on specified financial assets shall henceforth attract a tax rate of 20 per cent instead of 15 per cent, while that on all other financial assets and non-financial assets shall continue to attract the applicable tax rate.
Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, it is proposed to increase the limit of exemption of capital gains on certain listed financial assets from ₹ 1 lakh to ₹ 1.25 lakh per year.
Listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term.
Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates.
These proposals are proposed to be given effect with immediate force.
C.5 Rationalisation of tax deducted at source (TDS) rates: It is proposed to bring down TDS rates from 5 per cent to 2 per cent in certain sections and omit section 194F where TDS rate is 20 per cent, as given below:
C.6 Credit of TDC and TCS: It is proposed to allow credit of all tax deducted or collected while computing the amount of tax to be deducted on salary income under section 192.
C.7 Claiming credit for TCS of minor in the hands of parent: It is proposed to empower the Board to make rules to provide credit of tax collected to person other than collectee.
C.8 Alignment of interest rate on delayed payment on TCS with TDS: It is proposed to increase the rate of simple interest from 1 per cent to 1.5 per cent on delayed payments of TCS after collection, as in the case of TDS.
C.9 Increase in limit of remuneration to working partners of a firm allowed as deduction: It is proposed to increase the limit of remuneration to working partners to ` 3,00,000 or 90 per cent of the book-profit, whichever is more, on the first `6,00,000 of the book-profit or in case of a loss.
D.2 Securities transaction tax (STT) rates: It is proposed to increase the rates of STT on sale of an option in securities from 0.0625 per cent to 0.1 per cent of the option premium, and on sale of a futures in securities from 0.0125 per cent to 0.02 per cent of the price at which such futures are traded.
D.3 Income from letting out of house property: It is proposed that income from letting out of a house or part of the house by the owner, shall not be charged under the head ‘profits and gains of business or profession’ and will be chargeable to tax under the head ‘income from house property’ only.
D.4 Transfer of capital asset: It is proposed to provide that the transfer of a capital asset, under a gift or will or an irrevocable trust, by an entity other than an individual or a Hindu undivided family (HUF) only, shall be regarded as transfer for the purpose of calculation of capital gain.
D.5 TDS on payment to a partner: It is proposed that payments made by firm to its partner in the nature of salary, remuneration, commission, bonus and interest, etc shall be subject to TDS at the rate of 10 per cent for aggregate amounts more than ` 20,000 in a financial year.
D.6 TCS on notified luxury goods: To enable TCS on luxury goods, it is proposed to levy TCS of 1 per cent on notified goods of value exceeding ten lakh rupees.
D.7 TDS on sale of immovable property: It is proposed to clarify that where there is more than one transferor or transferee in respect of an immovable property, then such consideration for transfer of the immovable property shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property.
D.8 TDS on Floating Rate Savings (Taxable) Bonds (FRSB) 2020: TDS is proposed on interest exceeding ten thousand rupees on Floating Rate Savings (Taxable) Bonds (FRSB) 2020 or any other notified security of the Central or State Governments.
D.9 Inadmissibility of non-business expenditure by life insurance companies: It is proposed to provide that any expenditure which is not admissible under the provisions of section 37 in computing the profits and gains of a business shall be included to the profits and gains of the life insurance business.
D.10 Inclusion of taxes withheld outside India for purposes of calculating total income: It is proposed to provide that income tax paid outside India by way of deduction is deemed to be income received for the purpose of computing the income of the assessee.
D.11 Excluding income mentioned in section 194J from applicability of section 194C: It is proposed to explicitly state that any sum referred to in sub-section (1) of section 194J (fees for professional or technical services) does not constitute “work” for the purposes of TDS under section 194C (payments to contractors).
D.12 Claim of settlement amounts as business expenditure: It is proposed to disallow expenses incurred as settlement fees for any contravention of law, as may be notified by the Central Government.
D.13 Definition of Fair Market Value (FMV): It is proposed to provide for a method of calculation of fair market value on 31.01.18 under section 55(2) (ac) in the case of sale of unlisted equity shares in an offer for sale in an initial public offer.
E.2 Equalisation Levy: It is proposed that Equalisation Levy at the rate of 2 per cent of consideration received for e-commerce supply of goods or services, shall no longer be applicable on or after 1st August, 2024.
E.3 Non-reporting of small foreign assets has penal consequences under the Black Money Act. Such non-reporting of movable assets up to ₹ 20 lakh is proposed to be de-penalised.
E.4 It is proposed to decriminalize late payment of tax deducted at source (TDS) , if the payment is made before the time prescribed for filing the TDS statement.
E.5 It is proposed to provide that no order for failure to deduct/ collect tax from any person shall be passed after the expiry of six years from the end of the financial year in which payment is made.
E.6 Enabling processing of statements other than those filed by deductors: It is proposed to provide that the Board may make a scheme for processing of such statements.
E.7 Lower deduction / collection certificate of tax at source: It is proposed to allow for application for lower deduction / collection certificate of tax for section 194Q (TDS on payment for purchase of goods) and sub-section (1H) of section 206C (TCS on receipt of sale of goods).
E.8 Notification of certain persons or class of persons as exempt from TCS: It is proposed to empower the government to notify persons or class of persons from whom no collection of tax shall be made or collection of tax shall be made at a lower rate in respect of specified transactions.
E.9 Time limit to file correction statement for TDS/TCS statements: It is proposed to provide that no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the TDS/TCS statement are respectively required to be delivered.
E.10 Penalty for failure to furnish statements: It is proposed to provide for penalty on late furnishing of TDS or TCS statement beyond one month instead of the existing period of 12 months.
E.11 It is proposed to prescribe the period within which annual statement of activities of a liaison office is required to be furnished. It is further proposed to provide for penalty on failure of submission of annual statement within the due period.
E.12 It is proposed to enable the Transfer Pricing Officer to deal with specified domestic transactions which have not been referred to him by the Assessing Officer.
E.13 It is proposed to discontinue the quoting of Aadhaar Enrolment ID in place of Aadhaar number.
E.14 It is proposed to provide those applications before the Board for Advance Rulings transferred from Authority of Advance Rulings may be allowed to be withdrawn before 31.10.2024.
E.15 It is proposed to empower Commissioner (Appeals) to set aside ex-parte assessment orders.
E.16 Amendment in Section 271FAA: It is proposed to amend section 271FAA to provide for a penalty on failure to comply with due diligence requirement relating to compliance with Automatic Exchange of Information (AEOI).
E.17 Tax Clearance Certificate: It is proposed to include reference of Black Money Act, 2015 for the purposes of obtaining a tax clearance certificate.
E.18 Returns filed after condonation of delay: It is proposed that in respect of returns filed after condonation of delay, the assessment can be made up to 12 months from the end of the financial year in which such return was furnished.
E.19 Donations to National Sports Development Fund: Any sums paid as donations to the National Sports Fund set up by the Central Government are presently eligible for deduction under section 80G. The name of the fund is proposed to be corrected as National Sports Development Fund.
E.20 Removing reference to National Housing Board: As housing finance companies are now under the purview of the Reserve Bank of India as a category of Non-Banking Financial Companies (NBFCs), it is proposed to remove reference to National Housing Board in section 43D of the Act.
E.21 Adjusting liability under Black Money Act, 2015 against seized assets: It is proposed to insert reference of Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 in the section 132B of the Income-tax Act, 1961 so as to enable recovery of liabilities under the Act out of seized assets.
E.22 Amendments to the Prohibition of Benami Property Transactions Act, 1988: It is proposed to provide immunity from penalty and prosecution to benamidar on full and true disclosure. It is also proposed to rationalize time limits for attachment of property and reference to adjudicating authority.
