The Finance Bill (Budget) 2024 in India outlines updated income tax rates, deductions, and surcharges applicable from the assessment year 2024-25. For individuals opting for the New Tax Regime (NTR), tax rates are structured in increasing slabs from 0% to 30% based on income levels. Deductions under NTR are limited, with exceptions including INR 50,000 for certain investments. The Old Tax Regime (OTR) offers a different structure with available deductions, including those for senior and super senior citizens. Corporate tax rates include a standard 30% for domestic companies and varying rates for foreign companies, with surcharge and cess applicable. For partnership firms and LLPs, the tax rate is 30% with a 12% surcharge on incomes over 1 crore. Cooperative societies face a tiered tax rate system with an option for concessional tax rates under specific sections. Key changes include the removal of indexation benefits for long-term capital gains from July 23, 2024, and updated minimum holding periods for listed and non-listed securities. Other updates include increased standard and family pension deductions and changes in Security Transaction Tax (STT) rates.
Page Contents
- (A) Income tax rates + Surcharge rates + Cess rate (all) for Individuals
- 1. Rates for New Tax Regime (NTR) when Old Tax Regime (OTR) not opted
- 2. Rates for OTR when NTR is not opted
- 3. Rates for OTR for Senior Citizen (Age from 60 to 80 years)
- 4. Rates for OTR for Super Senior Citizen (Age from 80 years)
- 5. Surcharge for OTR + also NTR (both)
- 6. Cess for OTR + also NTR (both)
- 7. Rebate for resident in India when taxable incomes not exceeding 7 lacs
- (B) Income tax rates for corporate + firms + also Cooperative Societies (all)
- 8. Rates for domestic (Indian) + also foreign companies (both)
- 9. Rates for domestic companies when turnover not exceeding 400 crores
- 10. Cess for domestic + also foreign companies (both)
- 11. Concessional Income tax + also surcharge (both) for domestic companies
- 12. Rate for partnership firms + Limited Liability Partner-ships (LLPs)
- 13. Surcharge for partnership firms + also LLPs (both)
- 14. Cess for partnership firms + also LLPs (both)
- 15. Rates for Cooperative societies
- 16. Surcharge for Cooperative societies
- 17. Cess for Cooperative societies
- 18. Concessional Income tax + surcharge (both) for cooperative societies
- (C) Income tax matters for Individuals
- (D) Business taxa-tion matters
- (E) Capital gains tax matters
- 27. Tax rates for Short term + also Long term (both) capital gains
- 28. Holding period for listed + also non listed securities (both)
- 29. Indexation removed for computing long term capital gains
- 30. Long term capital gains tax not permitted for unlisted debentures + bonds (both)
- 31. Rates for section 115A + 115AB + 115ACA + 115AD + + 115AE (all)
- 32. Changed holding period for transfer of long term capital assets
- 33. Changed tax’s rates for short term capital assets’ sale or transfer
- 34. Changed tax rates for long term capital gains
- 35. Removed indexation benefit for long term capital gains
- 36. Removed disadvantages for non-resident in comparison to resident in India
- 37. Changed definition for specified mutual funds
- 38. Excluded for exemptions against shares’ gift by companies
- 39. Clarified for unlisted equity shares sold under Offer-for-Sale (OFS) included in IPO
- 40. Levied capital gains tax on buy-back of shares by domestic companies
- (F) Other Source In-comes matters
- (G) International taxation matters
- 43. Expanded scope for claiming tax incentives by units in IFSC in India
- 44. Expanded scope for Recognized Clearing Corporation (RCC) in IFSC in India
- 45. Relaxation for VCF or VCC against source of funds to AO when regulated by IFSC
- 46. Expanded scope for thin capitalization for engaged in banking/insurance business
- 47. Relaxed scope for domestic cruise operations by non-residents in India
- 48. Abolished Equalization Levy (EL) in India
- 49. Increased eligible incomes/assets for penalty 10 lacs for non disclosure in ITR
- 50. Imposed penalty for filling of statement by liaison office in India
- 51. Rationalized Transfer Pricing (TP) for Specific Domestic Transactions (SDTs)
- 52. Authorized for withdrawing application already transferred to BAR from AAR
- 53. Clarifications for penalty against inaccurate financial transactions’ statement
- 54. Obtaining Tax Clearance Certificate (TCC) under Black Money Act, 2015
- 55. Treated Incomes for Tax Deducted At Source (TDS) + Tax paid outside In-dia
- (H) Charitable Trust matters
- (I) Block assess-ment matters
- (J) Assessments + also Re-assessments (both) mat-ters
- (K) Filing appeals before Income Tax Appellate Tribunal (ITAT)
- (L) Time limits for assessment + re-assessment + also re-computation (all)
- (M) Tax Deducted At Source (TDS) Matters
- 79. For Revised TDS’ rates
- 80. For TCS’s credit against salaries
- 81. For Increased penal interest against delay TCS’s payment
- 82. For Credit against minor’s TCS
- 83. For TDS @ 10% on payments to partners
- 84. For TCS @ 1% on luxury goods sales
- 85. For TDS @ 1% on immovable property’s sales
- 86. For TDS @ 10% on Floating Rate Savings (Taxable) Bonds (FRSB) 2020
- 87. For TDS @ 10% on payments against work contracts (Section 194J(1))
- 88. For Processing of statement filed by exchanges (Form 26QF)
- 89. For Lower TDS + also TCS certificate (both) (Section 194Q + 206C(1H))
- 90. For TCS exemptions
- 91. For Time limit against filing correction statement (Section 206 + 206C(3B))
- 92. For Reducing time limit against assessee in default (Sec. 201(3) + 206C(7A))
- (N) Direct Tax Vivad se Vishwas Scheme (DTVVS) 2024
- 93. For Introduction
- 94. For Appellant
- 95. For Appellant forum
- 96. For Designated authority
- 97. For Disputed fee
- 98. For Disputed income
- 99. For Disputed interest
- 100. For Disputed penalty
- 101. For Disputed tax
- 102. For Tax arrear
- 103. For Amount payable by declarant
- 104. For Amount payable by declarant when appeal/WT/SLP filed by ITD
- 105. For Amount payable by declarant when appeal filed before CIT/JCIT (Appeals)
- 106. For Amount payable by declarant when appeal filed before ITAT
- (O) Miscellaneous matters
(A) Income tax rates + Surcharge rates + Cess rate (all) for Individuals
1. Rates for New Tax Regime (NTR) when Old Tax Regime (OTR) not opted
◉ Applicable from year ending on March 31, 2024 / Assessment Year (AY) 2024-25 ◉
| S.No | Taxable incomes (in INR) | Rate of tax |
| (i) | From 0 to 3,00,000 | 0% |
| (ii) | From 3,00,001 to 7,00,000 | 5% |
| (iii) | From 7,00,001 to 10,00,000 | 10% |
| (iv) | From 10,00,001 to 12,00,000 | 15% |
| (v) | From 12,00,001 to 15,00,000 | 20% |
| (vi) | From 15,00,001 | 30% |
Question (Q) No. – 1
Whether any deduction is available against abovementioned taxable incomes ?
Answer (A) No. – 1
Generally deduction is not available except certain exceptions
Q – 2
What are abovementioned exceptions where deduction is available ?
A – 2
(i) Deduction is available under section 16(ia) INR 50,000 (INR 75,000 from year ending March 31, 2025 – Ay. 2025–26)
(ii) Deduction is available under section 57(iia) INR 15,000 (INR 25,000 from year ending March 31, 2025 – Ay. 2025–26)
(ii) Deduction is available for investments under section 80CCH(2) – INR 15,000
2. Rates for OTR when NTR is not opted
◉ Applicable from year ending on March 31, 2025 / AY.-2025-26 ◉
| S. No | Taxable incomes (in INR) | Rate of tax |
| (i) | From 0 to 2,50,000 | 0% |
| (ii) | From 2,50,001 to 5,00,000 | 5% |
| (iii) | From 5,00,001 to 10,00,000 | 20% |
| (iv) | From 10,00,001 | 30% |
Q – 1
Whether any deduction is available against abovementioned taxable incomes ?
A – 1
Yes
100% eligible deductions are available
3. Rates for OTR for Senior Citizen (Age from 60 to 80 years)
◉ Applicable from year ending on March 31, 2025 / AY.-2025-26 ◉
| S.No | Taxable incomes (in INR) | Rate of tax |
| (i) | From 0 to 3,00,000 | 0% |
| (ii) | From 3,00,001 to 5,00,000 | 5% |
| (iii) | From 5,00,001 to 10,00,000 | 20% |
| (iv) | From 10,00,001 | 30% |
Q – 1
Whether any deduction is available against abovementioned taxable incomes ?
A – 1
Yes
100% eligible deductions are available
4. Rates for OTR for Super Senior Citizen (Age from 80 years)
◉ Applicable from year ending on March 31, 2025 / AY. – 2025-26 ◉
| S.No | Taxable incomes (in INR) | Rate of tax |
| (i) | From 0 to 5,00,000 | 0% |
| (ii) | From 5,00,001 to 10,00,000 | 20% |
| (iii) | From 10,00,001 | 30% |
Q – 1
Whether any deduction is available against abovementioned taxable incomes ?
A – 1
Yes
100% eligible deductions are available
5. Surcharge for OTR + also NTR (both)
| S. No | Income (Rs) | For year ending March 31, 2025 /AY 2025–26 |
| (i) | From 0 to 50 Lacs | 0% |
| (ii) | From 50 Lacs to 1 crore | 10% |
| (iii) | From 1 to 2 crores | 15% |
| (iv) | From 2 to 5 crores | 25%* |
| (v) | From 5 crores | 37%* |
* Maximum (restricted) surcharge @ 15% to be levied on divi-dend incomes + capital gains under section 111A + 112 + also 112A (all).
6. Cess for OTR + also NTR (both)
◉ Cess @ 4% is to be levied on amount of Income tax + also surcharge (both)
7. Rebate for resident in India when taxable incomes not exceeding 7 lacs
◉ Applicable from year ending March 31, 2025 / AY. 2025–26 ◉
(i) 100% on computed Income tax or INR 25,000 whichever lower is permitted for rebate under OTR
(ii) 0% (zero) is permitted for rebate under NTR
◉ Applicable from year ending March 31, 2024 / AY. 2024–25 ◉
(i) 100% on computed Income tax or INR 12,500 whichever lower is permitted for rebate under OTR
(ii) 0% (zero) is permitted for rebate under NTR
(B) Income tax rates for corporate + firms + also Cooperative Societies (all)
8. Rates for domestic (Indian) + also foreign companies (both)
| S. No | Incomes | For year ending on March 31, 2025 / AY 2025–26 | |
| Income Tax | Surcharge | ||
| (i) | Incomes from 0 to 1 crore for Domestic Companies | 30% | 0% |
| (ii) | Incomes from 1 crore to 10 crores for Domestic Companies | 30% | 7% |
| (iii) | Incomes from 10 crores for Domestic Companies | 30% | 12% |
| (iv) | Incomes from 0 to 1 crore for Foreign Companies | 35% | 0% |
| (v) | Incomes from 1 crore to 10 crores for Foreign Companies | 35% | 2% |
| (vi) | Incomes from 10 crores for Foreign Companies | 35% | 5% |
9. Rates for domestic companies when turnover not exceeding 400 crores
◉ Income tax @ 25% is applicable when domestic compa-nies’ turnover or receipts in immediate preceding AY. is not exceeding 400 crores.
10. Cess for domestic + also foreign companies (both)
◉ Cess @ 4% is applicable on amount of Income tax + also surcharge (both)
11. Concessional Income tax + also surcharge (both) for domestic companies
(i) (a) Income tax @ 22% is applicable when domestic companies are opting taxation after satisfying certain conditions under sec. 115BAA of ITA, 1961
(ii) Also surcharge @ 10% is applicable on Income tax like @ 2% = 24.2%
(iii) (a) Income tax @ 15% is applicable when domestic companies are opting taxation after satisfying certain conditions under sec. 115BAB of ITA, 1961
(iv) Also surcharge @ 10% is applicable on Income tax like @ 5% = 16.5%
12. Rate for partnership firms + Limited Liability Partner-ships (LLPs)
◉ Income tax @ 30% is applicable for partnership firms + also LLPs (both)
13. Surcharge for partnership firms + also LLPs (both)
◉ Surcharge @ 12% is applicable for partnership firms + also LLPs (both) when taxable incomes are exceeding 1 crore.
14. Cess for partnership firms + also LLPs (both)
◉ Cess @ 4% is applicable for partnership firms + also LLPs (both) on amount of Income tax + also surcharge (both)
15. Rates for Cooperative societies
| S. No | Taxable Incomes (in INR) | For year ending on March 31, 2025 / AY 2025–26 |
| (i) | From 0 to 10,000 | 10% |
| (ii) | From 10,001 to 20,000 | 1,000 + @20% on amount above 10,000 |
| (iii) | From 20,001 | 3,000 + @30% on amount above 20,000 |
16. Surcharge for Cooperative societies
(i) Surcharge @ 7% is applicable when incomes are exceeding 1 crore.
(ii) Surcharge @ 12% is applicable when incomes are exceeding 10 crores.
17. Cess for Cooperative societies
◉ Cess @ 4% is applicable on amount of Income tax + also surcharge (both)
18. Concessional Income tax + surcharge (both) for cooperative societies
(i) (a) Income tax @ 22% is applicable when cooperative societies are opting taxation under section 115BAD of ITA, 1961
(b) Also surcharge @ 10% is applicable on Income tax like @ 22% = 2%
(iii) (a) Income tax @ 15% is applicable when cooperative societies are opting taxation under section 115BAE of ITA, 1961
(iii) Also surcharge @ 10% is applicable on Income tax like @ 5% = 16.5%
(C) Income tax matters for Individuals
19. Discontinuation for quoting Aadhar enrollment ID against Aadhar Number
◉ Applicable from October 01, 2024 / AY. – 2025-26 ◉
◉ Now taxpayer is not required for quoting Aadhar Enrollment ID in place of Aadhar number under section 139AA of ITA, 1961
20. Revision for Security Transaction Tax (STT) rates
◉ Applicable from October 01, 2024 / AY. – 2025-26 ◉
| S.No | Particulars | Rate from Oct 01, 2024 | Rate up to Sep 30, 2024 |
| (i) | On sale of premium of options | 0.1% | 0.0625% |
| (ii) | On sale of price of future | 0.02% | 0.0125% |
21. Increment for Standard deduction against salaries’ incomes
◉ Applicable from year ending on March 31, 2025 / AY. – 2025-26 ◉
◉ Standard Deduction is increased to 75 thousand (from 50 thou-sand) on salaries incomes under section 16 of ITA, 1961
22. Increment for family pension deductions against pension’s incomes
◉ Applicable from year ending on March 31, 2025 / AY. – 2025-26 ◉
◉ Family pension deduction is increased to 25 thousand (from 15 thou-sand) or 33.33% of family pension incomes whichever is lower under section 57 of ITA, 1961
(D) Business taxa-tion matters
◉ Applicable from year ending on March 31, 2025 / AY. – 2025-26 ◉
23. Disallowances for payments against prohibited dispute settlements
(i) Now expenditures specified under explanation 1 of section 37(1) of ITA, 1961 is to be disallowed when incurred for prohibited dispute settlement against prohibited offence committed.
(ii) Abovementioned expenditures for prohibited offence committed to include benefits or perquisites paid to individuals for violation of laws or regulations or offence compounding under any India’s law.
24. Treating business in-comes for expenditure not per-mitted against life insurance
◉ Now certain expenditures are not permitted against life insurance business there-fore treated business incomes under section 44 of ITA, 1961
25. Increased limit for working partners’ remuneration
| S. No | For year ending on March 31, 2025 | For year ending on March 31, 2024 |
| (i) | INR 3 lacs or 90% of book- profits up to 6 lacs whichever is higher | INR 1.5 lacs or 90% of book- profits up to 3 lacs whichever is higher |
| (ii) | 60% of book profits when exceed-ing 6 lacs | 60% of book profits when exceed-ing 3 lacs |
26. Increased limit for contribution to National Pension Scheme (NPS) by employers
◉ Now employers are permitted under section 36(1)(iva) for increased deductions up to 14% from 10% of employee’s salaries against contributions made towards employees’ NPS referred in section 80CCD of ITA, 1961
(E) Capital gains tax matters
◉ Applicable from July 23, 2024 / AY-2025-26 ◉
27. Tax rates for Short term + also Long term (both) capital gains
| S. No | Particulars for capital gains | Under Section | From July 23 to March, 2025 /
AY 2025–26 |
From April 01 to July 22, 2024 /
AY 2025–26 |
For year ending March 31, 2024 /
AY 2024–25 |
| (i) | Short-term capital gains | 111A | 20% without Indexation | 15% without Indexation | 15% without Indexation |
| (ii) | Long-term capital gains | 112 | 12.5% without Indexation** | 20% with Indexation | 20% with Indexation |
| (iii) | Long-term capital gains | 112A | 12.5% without Indexation * | 10% without Indexation * | 10% without Indexation * |
* Exemption against long term capital gains is available for INR 1.25 lacs from July 23, 2024 to March 31, 2025 / AY. 2025–26 under section 112A
** Long term capital gain tax on transfer / sale of land and building by individual or HUF only is applicable @ 12.5% without indexation or 20% with indexation whichever is lower when acquired before July 23, 2024
28. Holding period for listed + also non listed securities (both)
(i) Now minimum holding period for computing long term capital gains against listed securities is 12 months from July 23, 2024 under section 2(42A) of Income Tax Act (ITA) 1961
(ii) Now minimum holding period for computing long term capital gains against non listed securities is 24 months from July 23, 2024 under section 2(42A) of Income Tax Act (ITA) 1961
29. Indexation removed for computing long term capital gains
(i) Indexation benefit is not available for computing long term capital gains on listed + non listed (both) securities from July 23, 2024 under section 48(ii) of ITA 1961
(ii) Indexation benefit is available for computing long term capital gains on non listed securities up to July 22, 2024 under section 48(ii) of ITA, 1961
30. Long term capital gains tax not permitted for unlisted debentures + bonds (both)
(i) Now short term capital gains tax is applicable for sale or transfer of unlisted debentures + also bonds (both) from July 23, 2024 beside holding period 24 months is completed under sections 50AA of ITA, 1961
(ii) Hence normal slabs for Income tax’ rates are applicable for sale or transfer of unlisted debentures + also bonds (both) from July 23, 2024 beside holding period 24 months is completed under sections 50AA of ITA, 1961.
31. Rates for section 115A + 115AB + 115ACA + 115AD + + 115AE (all)
◉ Corresponding amendments are being made under section 115AD + 115AB + 115AC + 115ACA + also 115E = 5 sections to align capital gains tax’ rates from July 23, 2024 / AY 2025–26 like:
(i) Short–term capital gains under section 111A of ITA, 1961
(ii) Long–term capital gains under section 112 of ITA, 1961
(iii) Long–term capital gains under section 112A of ITA, 1961
32. Changed holding period for transfer of long term capital assets
| S. No | Particulars of Capital Asset | Holding Period from July 23, 2024 | Holding Period up to July 22, 2024 |
| (i) | For Listed securities other than followings :
(a) Units (b) Units of UTI (c) Units of equity oriented fund (d) Zero coupon bonds |
12 Months | 12 Months |
| (ii) | For Other listed securities | 12 Months | 36 Months |
| (iii) | For Unlisted shares + immovable properties | 24 Months | 24 Months |
| (iv) | For Other assets | 24 Months | 36 Months |
33. Changed tax’s rates for short term capital assets’ sale or transfer
| S. No | Particulars of Capital Gains | From July 23, 2024 | Up to July 22, 2024 |
|
(i) |
Short-term capital gains after STT Paid :
(a) For Equity shares (b) For Units of equity orient-ed mutual fund (c) For Units of business trust |
20% | 15% |
| (ii) | Other short-term capital gains | Normal tax slabs | Normal tax slabs |
34. Changed tax rates for long term capital gains
| S. No | Particulars for Capital Gains | From July 23, 2024 | Up to July 22, 2024 |
| (i) | Long-term capital gains with STT:
(a) For Listed equity shares (b) For Units of equity-oriented fund (c) For Business trust |
12.5% | 10% |
| (ii) | Long-term capital gains without STT:
(a) For Unlisted securities (b) For Company’s shares where public are not substantially interested * Also without indexation benefit for non-resident under section 48(i)&(ii) of ITA, 1961 |
12.5%* | 10% |
| (iii) | Long-term capital gains referred :
(a) Under section 115E (b) Under section 115AD (c) Under section 115AB (d) Under section 115A (e) Under section 115ACA |
12.5% | 10% |
| (iv) | Long-term capital gains on Other As-sets
* Also not referred long-term capital gains under section 10 (33) & (36) of ITA, 1961 |
12.5%* | 20% |
◉ Maximum exemption from long term capital gains tax is applicable for INR 1.25 lacs from July 23, 2024 under section 112A of ITA, 1961.
35. Removed indexation benefit for long term capital gains
(i) Now indexation benefit is removed for computing long term capital gains under section 48(ii) of ITA, 1961
(ii) Abovementioned indexation benefit was available for computing long term capital gains on sale or transfer of certain assets like:
(a) Sale or transfer of properties
(b) Sale or transfer of gold + diamond + jewellery + also etc. (all)
(c) Sale or transfer of other unlisted assets
(iii) Fair Market Value (FMV) is to be adopted for sale or transfer of capital assets purchased or acquired before April 01, 2001 + without indexation benefit (both).
(iv) Hence capital gains tax @ 12.5% is to be levied on sale or transfer of long term capital assets without indexation benefit from July 23, 2024 / AY. 2025–26
36. Removed disadvantages for non-resident in comparison to resident in India
(i) Now amendments are made under section 115A + 115AB + 115ACA + 115AD + + 115AE = 5 sections to align with rates for long term capital gains under section 111A + 112 + 112A = 3 sec-tions to remove disadvantage for non-resident in comparison to resident in India from July 23, 2024 / AY. 2025–26
(ii) Also amendments are made under section 196B + 196C = 2 sections to align with withholding tax provisions for long term capital gains to remove disadvantage for non-resident in comparison resident in India from July 23, 2024 / AY. 2025–26
37. Changed definition for specified mutual funds
◉ Now definition for specified mutual funds is changed under section 50AA of ITA, 1961 to include certain mutual funds only like:
(i) To include mutual funds where investment is exceeding 65% of total proceeds in debts + also money market instruments (both together)
Or
(ii) To include mutual funds where investment is exceeding 65% of total proceeds in units of fund engaged in debts + also money market instruments (both together)
◉ Finance Act, 2023 has introduced special taxation regime under section 50AA treating short term capital gains from Market linked debentures + also specified mutual funds (both) regardless of holding period
(i) Now companies are not permit-ted to avail exemption under section 47(iii) of ITA, 1961 for transferring capital as-sets through gift or will or irrevocable trust (any) by them
(ii) Hence non companies like Individuals + also Hindu Undivided Families (HUFs) are permitted to avail exemption under section 47(iii) of ITA, 1961 for transferring capital assets through gift or will or irrevocable trust (any) by them
(i) Now clarified that FMV is to be determined for unlisted equity shares sold under OFS which are already included in Initial Public Offering (IPO) using same proportionate method based on cost inflation index for relevant under section 55(2)(ac) of ITA, 1961.
(ii) Abovementioned equity shares should be unlisted as on January 31, 2018
(i) Now capital gains tax is to be levied on buy-back of shares by domestic companies
(ii) Abovementioned buy back is treated as divided incomes in hands of shareholders under section 2(22)(f) of ITA, 1961
(iii) Expenses are not permitted against di-vided incomes in hands of shareholders
(F) Other Source In-comes matters
◉ Applicable from year ending on March 31, 2025 / AY-2025-26 ◉
41. Abolished Angel Tax
(i) Now Angel tax is abolished
(ii) (a) Angle tax was imposed in Finance Act, 2012 on consideration received by company over and above FMV
(b) Also abovementioned company was not public substantially interested
(iii) Abovementioned consideration received over and above FMV was taxable under Income from other sources in company’s hands.
(iv) Hence Angel tax is not to be levied on consideration received from resident + also non-resident (both) for year ending on March 31, 2025 / AY. 2025–26
(i) Now shareholders are required to pay income tax on amount received from company for buy-back of shares as dividend under income from other sources
(ii) Shareholders are not permitted to claim expenses against abovementioned dividend incomes
(iii) Shareholders are permitted to claim capital loss against cost of acquisition of buyback of shares
(iv) Shareholders are permitted to set-off abovementioned capital loss against their capital gains in current year + also in future’s years (both)
(G) International taxation matters
◉ Applicable from year ending on March 31, 2025 / AY-2025-26 ◉
43. Expanded scope for claiming tax incentives by units in IFSC in India
(i) Now ambit for specified funds is expanded to include certain retail funds + also Exchange Traded Funds (ETFs) to claim exemption under section 10(4D) of ITA, 1961
(ii) Abovementioned specified funds to include those established or incorporated in India in certain forms + obtained certificates as retail scheme or ETFs + also regulated by IFSC regulatory like :
(a) Trust
(b) Domestic (Indian) company
(c) LLP
(d) Other body corporate
44. Expanded scope for Recognized Clearing Corporation (RCC) in IFSC in India
◉ Now ambit for recognized RCC is expanded to include specified incomes of Core Settlement Guarantee Funds (CSGFs) which are set up by recognized clearing corporations located in IFSC in India.
45. Relaxation for VCF or VCC against source of funds to AO when regulated by IFSC
◉ Now Venture Capital Fund (VCF) or Venture Capital Company (VCC) registered with SEBI + also regulated by IFSC (both) are to be relaxed to provide source of funds to Assessing Officer (AO) in India under section 68 of ITA, 1961
46. Expanded scope for thin capitalization for engaged in banking/insurance business
(i) Now ambit for banking or insurance business is expanded to include certain finance companies located in IFSC in India + also satisfying 100% pre-scribed conditions for carrying finance business to be permitted for thin capitalization under section 94B of ITA, 1961
(ii) Before abovementioned scope’s expansion for thin capitalization there were certain domestic (Indian) companies + also Permanent Establishment (PE) of foreign companies engaged in banking or insurance business or class of NBFC duly notified by Central govt. (any) were permitted
47. Relaxed scope for domestic cruise operations by non-residents in India
(i) Now presumptive taxation regime is permitted for non–residents those are already engaged in cruise ships business operation located outside India
(ii) Also abovementioned non-residents are permitted for exemption against lease rentals when foreign lessor company + also non- resident cruise ship operator company (both) are having same holding company located outside In-dia.
(iii) Income tax @ 20% on aggregate amount received or receivable or paid or payable to non-resident cruise ship operator for carrying of passengers as presumptive taxation under section 44BBC of ITA, 1961
(iv) Exemption is permitted under section 10(15B) of ITA, 1961 for lease rent-al paid by abovementioned 1st non-resident company who opted presumptive taxation to 2nd non-resident company when having same holding company located outside India.
48. Abolished Equalization Levy (EL) in India
◉ Applicable from August 01, 2024 / AY.-2025-26 ◉
(i) Now EL @ 2% is not applicable on consideration received on receivable for e-commerce supply of goods or services (any)
(ii) EL @ 2% was applicable on consideration received on receivable for e-commerce supply of goods or services (any) through Finance Act, 2020
49. Increased eligible incomes/assets for penalty 10 lacs for non disclosure in ITR
◉ Applicable from October 01, 2024 / AY.-2025-26 ◉
(i) Now penalty @ 10 lacs is applicable for non-disclosure or wrong dis-closure of foreign incomes or foreign assets (any) in Income Tax Return (ITR) by resident tax payer excluding not ordinarily resident taxpayer in India where aggregate value of assets are not exceeding INR 20 lacs (INR 5 lacs up to Sep 30, 2024) under section 42 and 43 of Black Money Act, 2015
(ii) Abovementioned penalty is applicable on lum sum basis regardless of asset’s value located outside India like penalty INR 10 lacs is applicable on incomes or assets undisclosed or wrongly disclosed whether aggregate value of assets is INR 21 lacs or 21 crores (any).
(iii) Abovementioned INR 20 lacs is including certain assets like:
(a) ESOPs
(b) Shares
(c) Bank accounts
(d) Other movable assets
(iv) However abovementioned INR 20 lacs is not applicable for immovable proper-ties
(v) Hence exemption is not applicable for immovable property beside FMV is INR l lac
50. Imposed penalty for filling of statement by liaison office in India
(i) Now penalty @ 1000 per day is applicable up to July 23, 2024 for not filling statement by liaison office in India within 60 days from end of financial year like May 30, 2024 for year ending on March 31, 2024 under section 271GC of ITA, 1961.
(ii) Now penalty lum-sum INR 1 lac is applicable after July 23, 2024 for not filling statement by liaison office in India within 60 days from end of financial year like May 30, 2025 for year ending on March 31, 2025 under section 271GC of ITA, 1961.
(iii) Now penalty is not applicable under section 273B when liaison office in India is able to prove that there was reasonable cause for abovementioned failure
51. Rationalized Transfer Pricing (TP) for Specific Domestic Transactions (SDTs)
(i) Now Transfer Pricing Officer (TPO) is permitted to determine Arm Length Price (ALP) for 100% SDT when referred to him by Assessing Officer (AO) and / or audit report under section 92CE of Income Tax, 1961 is not filed by tax-payer
(ii) (a) Abovementioned TPO is already having same power for International Transactions (ITs)
(b) Now same power is provided to TPO for SDT also.
52. Authorized for withdrawing application already transferred to BAR from AAR
(i) Now applicant is permitted for withdrawing application which was already transferred to Board for Advance Rulings (BAR) from Authority for Advance Rulings (AAR)
(ii) Abovementioned withdrawal is permitted up to October 31, 2024 under section 245Q
(iii) BAR is required to issue receipt against withdrawing’ application
(iv) Also BAR is permitted to reject withdrawing’ application up to December 31, 2024
53. Clarifications for penalty against inaccurate financial transactions’ statement
(i) Now clarified that lum-sum penalty INR 50 thousand is to be levied for furnishing inaccurate financial transaction’s statement by specified person prescribed under section 285BA of ITA, 1961 when specific circumstances are arises like:
(a) When furnished inaccurate information’s in financial statement
(b) When failed to comply with due diligence requirement in statement
(ii) ITD is permitted under section 273B for not to levy penalty under section 271FAA when specified person is able to prove that there was reasonable cause for abovementioned failure
54. Obtaining Tax Clearance Certificate (TCC) under Black Money Act, 2015
◉ Applicable from October 01, 2024 / AY.-2025-26 ◉
(i) Now obtaining TCC under Black Money Act (BMA) 2015 is additionally required for resident in India when he is wishing to leave India
(a) Now abovementioned resident is required to obtain TCC under certain Acts like:
(b) Black Money Act (BMA) 2015
(c) Income-Tax Act (ITA) 1961
(d) Wealth-Tax Act (WTA) 1957
(e) Gift-Tax Act (GTA) 1958
(f) Expenditure-Tax Act (ETA) 1987
55. Treated Incomes for Tax Deducted At Source (TDS) + Tax paid outside In-dia
(i) Now TDS + also tax paid outside India (both) under chapter XVII-B of ITA, 1961 are to be treated deemed incomes under section 198 of ITA, 1961 for computing resident’s incomes in India
(ii) However abovementioned resident is permitted to avail Foreign Tax Credit (FTC) against Income tax payable in India under ITA, 1961
(H) Charitable Trust matters
◉ Applicable from October 01, 2024 / AY-2025-26 ◉
56. Rationalization for Charitable Trusts under 1st + also 2nd (both) tax regimes
◉ Now 1st tax regime under section 10(23C)(iv) + (v) + (vi) + (via) = 4 sections & 2nd tax regime under section 11 + 12 + 13 = 3 sections are rationalized like :
(i) (a) Now application for exemption / registration’s application under 1st tax regime not acceptable
(b) However already filed application up to September 30, 2024 for ex-emption / registration’s application under 1st tax regime is to be pro-cessed under 1st tax regime
(c) Moreover already approved under 1st tax regime is to be continued without transfer into 2nd tax regime
(d) Hence trust under 1st tax regime is to be approved under 2nd tax regime after its original exemption’s expiry
(ii) Now eligible investment modes under 1st tax regime is to be protect-ed under 2nd tax regime through appropriate amendments in section 13 of ITA, 1961.
57. Condonation for delay application filing against exemption’s approval
(i) Now condonation against de-lay in filing application for exemption / registration’s application is permitted when deadline specified under section 12(1)(ac) of ITA, 1961 is expired
(ii) Now Principal Commissioner of Income Tax (PCIT) or Commissioner of Income Tax (CIT) is permitted to condone delay when trust has reasonable cause for missing deadline specified under section 12(1)(ac) of ITA, 1961
58. Timeline for disposing exemption / registration’s application
| S. No | Section | Old Time Limit
(up to Sep 30, 2024) |
New Time Limit
(From October 01, 2024) |
| (i) | 12AB | Within 6 month from end of month in which application is filed | Within 6 month from end of quarter in which application is filed |
| (ii) | 80G | Within 6 month from end of month in which application is filed | Within 6 month from end of quarter in which application is filed |
59. Merger from 1st trust or institution to 2nd trust or institution
◉ Applicable from April 01, 2024 / AY-2025-26 ◉
◉ Now merger of 1st trust / institution with 2nd trust / institution having 1st regime or 2nd regime (any) is permitted without attracting income tax liability under section 12AC of ITA, 1961 when certain mandatory conditions are satisfied like:
(i) When 2nd trust / institution has same or similar objects
(ii) When 2nd trust / institution is registered under section 12AA or 12AB or approved under 10(23C)
(I) Block assess-ment matters
◉ Applicable from September 01, 2024 / AY-2025-26 ◉
60. For Introduction
◉ Now Govt. has re-introduced block assessment scheme to make cost effective + efficient + meaningful assessments provisions for search where search or requisition (any) is initiated on or after September 01, 2024 for early finalization of search assessments + coordinated investigations during search assessments + also reduction in multiplicity of proceedings (all).
61. For Block assess-ment
◉ Block assessment to include 6 Assessment Years (AYs) preceding to year of initiation or requisition of search is made + also to include period from April 1 of search or requisition’s year up to last authorization date.
(i) Also to include single consolidated assessment for 6 AYs
(ii) Also no further assessment or re-assessment (any) is to be carried until block assessment is completed
62. For Undisclosed in-comes
◉ Undisclosed Incomes are to include total undisclosed assets for 6 AYs like:
(i) Cash
(ii) Bullions
(iii) Jewelleries
(iv) Other valuable articles
(v) Other valuable things
(vi) Expenditures
(vii) Incomes based on entries in books of accounts or other documents or transactions
(ix) Also valuable articles or things or entries in books of accounts or other documents or transactions rep-resenting wholly (100%) or partly (not 100%) incomes or assets which are not likely to be disclosed under ITA 1961.
(x) Also expenses or deductions or allowances (any) claimed incorrect under ITA 1961.
63. For Taxation
(i) To include tax @ 60% on block assessment’s incomes
(ii) However not to include surcharge on abovementioned tax @ 60%
(iii) Also not to include interest under section 234A + 234B + 234C + also penalties under section 270A (all)
64. For Penalty
(i) To include penalty @ 50% on abovementioned tax @ 60% like totaling to 90% (60% tax + 30% penalty) on block assessment’s incomes
(ii) However abovementioned penalty @ 30% not to levy when undisclosed incomes are declared + also tax is paid (both) in re-turn of incomes filed after search is completed therefore total tax liability including penalty is restricted to 60% only
65. For Time limit
(i) Block assessment is to be completed within 12 months from end of month in which last search executed or requisition authorization was made against searched person
(ii) Also block assessment is to be completed within 12 months from date of last notice issued under section 158BC against other person
(iii) However 6 months additional time is to be allowed from date of completion of search for handing over seized material to AO
66. For Approval for issuing notices + also assess-ment order (both)
◉ Approval is required from Additional Commissioner of Income Tax (ACIT) or Additional Director of Income Tax (ADIT)or Joint Commissioner of Income Tax (JCIT)or Joint Director of Income Tax (JDIT) for issuing notices + also assessment order (both)
(J) Assessments + also Re-assessments (both) mat-ters
◉ Applicable from September 01, 2024 / AY-2025-26 ◉
67. For Assessments + also Re-assessments (both)
(i) Now certain amendments are made under section 148 + 148A +149 +151 + 152 = 5 sections due to extensive litigations due to multiple interpretations after Finance Act, 2021 when it introduced significant changes for income’s assessment + re-assessment from April 01, 2021
(ii) Also abovementioned amendments are made to shorten notice issuance
68. For Notices (Section 148)
(i) Now AO is required to issue notice under section 148 before proceeding for assessment or re-assessment or re-computation under section 147 of ITA, 1961
(ii)Now abovementioned notice is to enclose order’s copy passed un-der section 148A(3) + also to provide time limit to notice’s recipient for 3 months to file return of in-comes.
(iii) Now abovementioned notice is not permitted to issue without specific information that income is escaped from assessment.
(iv) Now abovementioned information is considered valid when same is obtained through survey which is conducted on or after September 01, 2024 under section 133A (excluding section 133A(2A))
(v) Now specified authority’s approval is required to issue notice under section 148 when information is received under section 135A of ITA, 1961
69. For Show Cause No-tice (SCN) (Section 148A)
(i) Now AO is required to provide opportunity to be heard to taxpayer by issuing Show Cause Notice (SCN) + also required to provide specific information that income is escaped from assessment (both together).
(ii) Now taxpayer is required to send re-ply within specified time mentioned in SCN.
(iii) Now AO is required to obtain specified authority’ approval based on abovementioned taxpayer’s reply against SCN before is-suing notice under section 148 of ITA, 1961.
(9iv) Now AO is not required to obey abovementioned procedure when information is received under section 135A of ITA, 1961
70. For Time limit (Section 149)
- Now specified authorities to include ACIT or ADIT or JCIT or JDIT (any) for issuing notices under 148A + also 148 (both)
72. For Transitional period (Section 152)
(i) Now old provisions (applicable before Finance Act, 2024) under section 147 + 148 + 148A + 149 + also 151 = 5 sections are applicable for searches or requisitions or services (any) initiated from April 01, 2021 to August 31, 2024 = 41 months
(ii) Also abovementioned old provisions are applicable for assessments or re-assessments or re-computations (any) when notices or orders were issued up to August 31, 2024.
(K) Filing appeals before Income Tax Appellate Tribunal (ITAT)
- Applicable from October 01, 2024 / AY-2025-26
73. For Appeal filing’s eligibility + also time limit (both)
(i) ITAT appeal filing’s eligibility
-
- Now ITAT appeal’s filing is permitted for taxpayer + also Income tax authorities (both) like PCIT or CIT under section 253 against order passed by JCIT (appeals) or CIT (appeals) under section 158BFA (a) of ITA, 1961 towards penalties for undisclosed incomes found during search
(ii) Time limit for filing appeal by Income tax authorities
-
- Now Income tax authorities like PCIT or CIT is permitted to file appeal within 2 months from end of months in which order is communicated to taxpayer or PCIT or CIT (any) by JCIT (appeals) or CIT (appeals) under section 253 (3) of ITA, 1961
74. For CIT (appeals) powers against best judgment assessments
(i) Now CIT (appeals) is permitted to set aside best judgment assessment order passed by AO under section 144 of ITA, 1961 + also to refer back to AO for fresh assessment (both)
(ii) Abovementioned power is provided to CIT (appeals) to improve handling best judgment cases + also to ensure that assessments are conducted fairly (both).
75. For Time limit against AO’s disposal
(i) Govt. is permitted to establish time limit under section 153(3) of ITA, 1961 for cases’ to be disposed by AO where set aside order is passed by CIT (appeals)
(ii) Abovementioned time limit is applicable for orders passed by CIT (appeals) from October 01, 2024
(L) Time limits for assessment + re-assessment + also re-computation (all)
- Applicable from October 01, 2024 / AY-2025-26
76. Time limits for completing assessment (Section 143/144)
- Now AO is required to complete assessment within 12 months from end of financial year in which return of income is filed under section 153(1B) of ITA, 1961 like assessment is to be completed up to March 31, 2027 against return of incomes is filed on December 31, 2025.
77. Time limits for fresh assessment (Section 254/263/264)
- Now AO is required to complete fresh assessment within 12 months from end of financial year in which order is passed under section 254 / 263 / 264 of ITA, 1961 like assessment is to be completed up to March 31, 2026 against order passed on March 31, 2025
78. Time limits for revised assessment (Section 153B)
- Now AO is required to complete revised assessments within 12 months from end of month in which revival order is passed or time specified in it whichever is later under section 153B of ITA, 1961 like assessment is to be completed up to March 31, 2026 against revival order passed on March 31, 2025
(M) Tax Deducted At Source (TDS) Matters
79. For Revised TDS’ rates
| S.No | Particulars | Section | New Rates | Old Rates | Applicable from |
| (i) | Payments for interest on Floating Rate Savings (Taxable) Bonds (FRSB) 2020 | 193 | 10% | 0% | Oct 01, 2024 |
| (ii) | Payments for insurance commission to non companies | 194D | 2% | 5% | July 23, 2024 |
| (iii) | Payments for life insurance policies | 194DA | 2% | 5% | Oct 01, 2024 |
| (iv) | Payments for re-purchase of units by mutual fund or UTI | 194F | 0% | 20% | Oct 01, 2024 |
| (v) | Payments for commission etc. on sale of lottery tickets | 194G | 2% | 5% | Oct 01, 2024 |
| (vi) | Payments for commission or brokerage | 194H | 2% | 5% | Oct 01, 2024 |
| (vii) | Payments for rent by certain individuals / HUF | 194-IB | 2% | 5% | Oct 01, 2024 |
| (viii) | Payments for certain sums by certain individuals / HUF | 194M | 2% | 5% | Oct 01, 2024 |
| (ix) | Payments for certain sums by e-commerce operator to e-commerce participant | 194-O | 0.1% | 1% | Oct 01, 2024 |
| (x) | Payments for remuneration + Interest to partners (both) | 194T | 10% | 0% | July 23, 2024 |
80. For TCS’s credit against salaries
- Applicable from October 01, 2024 / AY-2025-26
- Now employers are required to allow Tax Collected at Source (TCS) under chapter XVII-BB while computing TDS liability for employees to improve their cash flow management.
81. For Increased penal interest against delay TCS’s payment
- Applicable from July 23, 2024 / AY-2025-26
- Now TCS collectors are required to pay penal interest @ 1.5% per month for TCS’s non-deposit with govt. under section 206C(7) of ITA, 1961.
82. For Credit against minor’s TCS
- Applicable from July 23, 2024 / AY-2025-26
- Now parents are permitted to claim minor’s TCS under section 206C(1G) when minor’s incomes are also clubbed in parent’s hands under section 64(1A) of ITA, 1961
83. For TDS @ 10% on payments to partners
- Applicable from July 23, 2024 / AY-2025-26
(i) Now Partnership firms are required to deduct TDS @ 10% on payments to partners at time of credit or payment whichever is earlier when aggregate annual payments are exceeding INR 20 thousands under section 194T of ITA, 1961
(ii) Abovementioned payments for TDS purpose to include certain items like:
(a) Salaries
(b) Remunerations
(c) Bonuses
(d) Commissions
(e) Interest on loans
(f) Interest on capital
(g) Etc.
84. For TCS @ 1% on luxury goods sales
- Applicable from January 01, 2025 / AY-2025-26
(i) Now luxury goods’ sellers are required to collect TCS @ 1% when good’s price is exceeding INR 10 lacs under section 206C(1F) of ITA, 1961
(ii) Govt. is required to notify list of luxury goods for abovementioned TCS purpose
85. For TDS @ 1% on immovable property’s sales
- Applicable from October 01, 2024 / AY-2025-26
(i) Now clarified that threshold limit INR 50 lacs for TDS @ 1% is to apply on aggregate amount paid or payable (any) by 100% transferees to 100% transferors against 1 immovable property under section 194-IA(2) of ITA, 1961
(ii) Hence clarified that abovementioned threshold limit is applicable for 1 property beside multiple transferees and / or multiple transferors are existed
86. For TDS @ 10% on Floating Rate Savings (Taxable) Bonds (FRSB) 2020
- Applicable from October 01, 2024 / AY-2025-26
(i) Now introduced TDS @ 10% on FRSB 2020 when aggregate annual interest paid or payable is exceeding INR 10 thousands
(ii) Now introduced TDS @ 10% on Other Specified Securities (OSS) duly notified by govt. when aggregate annual interest paid or payable is exceeding INR 10 thousands
87. For TDS @ 10% on payments against work contracts (Section 194J(1))
- Applicable from October 01, 2024 / AY-2025-26
(i) Now clarified that payments covered under section 194J(1) are not to be considered work contracts for TDS @ 2% under section 194C of ITA, 1961
(ii) Hence clarified that payments covered under section 194J(1) are to be considered professional services for TDS @10% under section 194J of ITA, 1961
88. For Processing of statement filed by exchanges (Form 26QF)
- Applicable from July 23, 2024 / AY-2025-26
- Now CBDT is required to establish scheme under section 200A of ITA, 1961 for processing of statements filed by stock exchange in Form 26QF
89. For Lower TDS + also TCS certificate (both) (Section 194Q + 206C(1H))
- Applicable from October 01, 2024 / AY-2025-26
(i) Now taxpayer is permitted to obtain lower TDS certificate to include section 194Q also under section 197 of ITA, 1961 when TDS @ 0.1% is applicable on payments for purchases are to be made to resident in India when annual aggregate is exceeding INR 50 lacs
(ii) Now taxpayer is permitted to obtain lower TCS certificate to include section 206C(1H) also under section 206C(9) of ITA, 1961 where TCS @ 0.1% is applicable on receipts for sales are to be made to resident in India when annual aggregate is exceeding INR 50 lacs
90. For TCS exemptions
- Applicable from October 01, 2024 / AY-2025-26
- Now govt. is permitted to notify certain persons + also class of persons like institutions or associations or class of institutions or associations or bodies (any) for 0% (zero) TCS or lower TCS’s rate
91. For Time limit against filing correction statement (Section 206 + 206C(3B))
- Applicable from July 23, 2024 / AY-2025-26
- Now taxpayer is not permitted to file correction statement (return) under section 206 + 206C(3B) of ITA, 1961 after 6 years from end of financial year in which original statement (return) was filed to ensure finality + also to reduce potential misuse (both).
92. For Reducing time limit against assessee in default (Sec. 201(3) + 206C(7A))
- Applicable from July 23, 2024 / AY-2025-26
(i) Now govt. is not permitted for declaring assessee in default against failure to deduct or collect under section 201(3) or 206C(7A) of ITA, 1961 after 6 years from end of financial year in which payment was made or credit given (any)
(ii) Also after 2 years from end of financial year in which correction statement was filed whichever is later
(N) Direct Tax Vivad se Vishwas Scheme (DTVVS) 2024
93. For Introduction
(i) Now govt. has introduced DTVVS, 2024 for resolving pending litigations with taxpayer
(ii) Abovementioned DTVVS, 2024 is to be applicable from notification’s date to be notified in official gazette by Central govt.
94. For Appellant
(i) (a) Meaning for appellant to include person who has filed appeal or Writ Petition (WP) or Special Leave Petition (SLP) by himself or by Income-Tax Department (ITD) or by both before appellate forum
+ (plus)
(b) Also abovementioned appeal or WP or SLP is pending before specified date
(ii) (a) Meaning for appellant to include person who has filed his objections before Dispute Resolution Panel (DRP) under section 144C of ITA, 1961
+ (plus)
(b) Also DRP has not issued any direction before specified date
(c) Or DRP has issued direction under section 144C(5) of ITA, 1961
But
(d) AO has not completed assessment referred under section 144C(13) before specified date
(iii) (a) Meaning for appellant to include person who has filed his application for revision under section 264 of ITA, 1961
+ (plus)
(b) Also abovementioned application is pending before specified date
95. For Appellant forum
- Meaning for appellate forum to include:
(i) Supreme Court of India
(ii) High Court of state
(iii) Income Tax Appellate Tribunal (ITAT)
(iv) Commissioner of Income Tax (CIT) (Appeals)
(v) Joint Commissioner of Income Tax (JCIT) (Appeals)
- Meaning for designated authority to include officer not below rank of CIT notified by PCIT for DTVVS, 2024
97. For Disputed fee
- Meaning for disputed fee to include fee determined in accordance with provisions of ITA, 1961 for which appeal is filed by appellant
98. For Disputed income
- Meaning for disputed income to include 100% (wholly) or not 100% (partly) against 1 assessment year relating to disputed tax
99. For Disputed interest
- Meaning for disputed interest to include interest determined in accordance with provisions of ITA, 1961 for which appeal is filed by appellant like:
(i) When interest is not charged or chargeable on disputed tax
(ii) When appeal is filed by appellant for disputed interest
100. For Disputed penalty
- Meaning for disputed penalty to include penalty determined in accordance with provisions of ITA, 1961 for which appeal is filed by appellant like:
(i) When penalty is not levied or leviable for disputed income or disputed tax (any)
(ii) When appeal is filed by appellant for disputed penalty
101. For Disputed tax
- Meaning for disputed tax to include Income tax + surcharge + also cess (all) payable by appellant under ITA, 1961 for 1 assessment year like:
(i) Equivalent to amount of Income tax + surcharge + also cess (all) payable by appellant to ITD when appeal or WP or SLP (any) to decide against him
(ii) Equivalent to amount of Income tax + surcharge + also cess (all) payable by appellant to ITD when DRP to confirm variation in proposed draft order under section 144C of ITA, 1961
(iii) (a) Equivalent to amount of Income tax + surcharge + also cess (all) payable by appellant to ITD based on AO’s original assessment order when DRP has issued direction under section 144C(5) of ITA, 1961
But
(b) AO has not completed assessment under section 144C(13) before specified date
(iv) Equivalent to amount of Income tax + surcharge + also cess (all) payable by appellant to ITD when revision’s application under section 264 of ITA, 1961 not to be accepted
102. For Tax arrear
- Meaning for tax arrears to include:
(i) Aggregate amount of disputed tax + interest chargeable or charged on disputed tax + penalty leviable or levied on disputed tax (all) + also to include like :
(ii) Disputed interest
(iii) Disputed penalty
(iv) Disputed fee
103. For Amount payable by declarant
- Meaning for amount payable by declarant to include like:
| S.No | Nature of tax arrear | Amount payable under DTVVS, 2024 before Dec 31, 2024. | Amount payable under DTVVS, 2024 from Jan 01, 2025 till last date |
| (i) | (a) When declarant is become appellant after Jan 31, 2020 but before specified date. | Disputed tax’s amount | Disputed tax’s amount + also disputed tax 10% (both) |
| + (plus)
(b) Also tax arrear is aggregate of disputed tax + interest chargeable /charged on disputed tax + penalty leviable / levied on disputed tax in 1 case |
|||
| (ii) | (a) Declarant is become appellant before Jan 31, 2020 at same appellate forum for tax arrear.
+ (plus) (b) Also tax arrear is aggregate of disputed tax + interest chargeable / charged on disputed tax + penalty leviable / levied on disputed tax in 1 case |
Disputed tax’s amount + also disputed tax’s 10% (both) | Disputed tax’s amount + also disputed tax’s 20% (both) |
| (iii) | (a) Declarant is become appellant after Jan 31, 2020 but before specified date.
+ (plus) (b) Also tax arrear is for disputed interest / disputed penalty / disputed fee |
20% of disputed Interest’s / Disputed penalty / Disputed fee | 30% of disputed
Interest’s / Disputed penalty / Disputed fee |
| (iv) | (a) Declarant is become appellant before Jan 31, 2020 at same appellate forum for tax arrear.
+ (plus) (b) Also tax arrear is for disputed interest / disputed penalty / disputed fee |
30% of disputed Interest’s / Disputed penalty / Disputed fee | — |
104. For Amount payable by declarant when appeal/WT/SLP filed by ITD
- Meaning for amount payable by declarant when appeal/WT/SLP filed by ITD @ 50% of amount calculated under FAQ no. 103
105. For Amount payable by declarant when appeal filed before CIT/JCIT (Appeals)
(i) (a) Meaning for amount payable by declarant when appeal is filed before CIT (appeals) or JCIT (appeals) or objection is filed before DRP by appellant @ 50% of amount calculated under FAQ no. 103
(b) Also abovementioned appellant has got decision in his favor on same issue / matter from ITAT
(c) Also abovementioned ITAT’s decision is not reversed by High court or Supreme court (any)
106. For Amount payable by declarant when appeal filed before ITAT
(i) (a) Meaning for amount payable by declarant when appeal is filed before ITAT by appellant @ 50% of amount calculated under FAQ no. 103
(b) Also abovementioned appellant has got decision in his favor on same issue / matter from High court
(c) Also abovementioned High court’s decision is not reversed by Supreme court
- For ineligible cases
(i) When assessment order is passed against search
(ii) When prosecution proceedings are already under process
(iii) When undisclosed incomes or assets located outside India
(iv) When information’s are received under agreement referred in section 90 or 90A of ITA, 1961
(v) When detention or prosecution is ordered under provisions of certain acts like:
(a) Prevention of Corruption Act (PCA) 1988
(b) Prevention of Money Laundering Act (PMLA) 2002
(c) Prohibition of Benami Property Transaction Act (PBPT) 1988
(d) Etc.
(O) Miscellaneous matters
107. For Not to levy penalty
- Applicable from July 23, 2024 / AY-2025-26
- Now AO is permitted for not to levy penalty under section 271H(3) of ITA, 1961 when taxpayer is able to prove that TDS/TCS + fee + interest have been deposited + also filed TDS/TCS statement (all) before 1 month from time prescribed for furnishing statement
108. For Set off + also refunds’ withholding (both)
- Applicable from October 01, 2024 / AY-2025-26
(i) Now AO is permitted to hold refund up to 60 days from date of completion of assessment or re-assessment or re-computation (any) under sec. 245 of ITA, 1961
(ii) However AO is required to satisfy 3 mandatory conditions for refund’s withholding (both) like:
(a) AO is required to form opinion that granting refund could negatively impact revenue
+ (plus)
(b) Also AO is required to record reasons in writing for abovementioned decision.
+ (plus)
(c) Also AO is required to obtain prior approval from Principal Commissioner of Income Tax (PCIT) or Commissioner of Income-tax (CIT)
+ (plus)
(d) Moreover AO is not required to pay interest under section 244A of ITA, 1961 during refund’s withholding period
109. For Adjusting liability under BMA, 2015 against seized assets
- Applicable from October 01, 2024 / AY-2025-26
(i) Now AO is required to adjust liability under section 132B of Black Money Act (BMA) 2015 against seized assets to enable recovery of liability
(ii) Abovementioned provision under BMA, 2015 is aligning with other existing tax laws in India.
110. For Time limit under Prohibition of Benami Property Transactions (PBPT)
- Applicable from October 01, 2024 / AY-2025-26
(i) Time limit for Benamidar or Beneficial Owner (BO) response
- Now benamidar or BO is required to submit reply for explanations or submissions within 3 months from end of month in which notice is issued under section 24(2A) of PBPT, 1988
(ii) Time limit for Provisional Attachment Decisions
- Now Initiating Officer (IO) is required to take provisional attachment decisions within 4 months from end of month in which notice is issued
(iii) Time limit for preparing Case’s Statement by IO
- Now IO is required to prepare + also to refer case’s statement (both) to be send to Adjudicating Authority (AA) within 1 month from end of month in which attachment order is issued
111. For Penalties’ immunity to benamidar + BO + also others (all)
- Applicable from October 01, 2024 / AY-2025-26
(i) Now IO is permitted to offer immunity under new section 55A to benamidar or any person who is able to provide full + also truthful information’s about benami transactions (both) after obtaining prior approval from competent authority against penalties under section 53 of PBPT, 1988 to protect individuals from penalties for benami transactions.
(ii) Abovementioned penalties for benami transactions to include rigorous imprisonment from 1 year to 7 years + also fine up to 25% on Fair Market Value (FMV) of benami property.
(iii) Abovementioned penalties is applicable against benamidars + BOs + any person who is able to provide full + also truthful information’s (all) about benami transactions
(iv) (a) However penalties are to be levied when abovementioned person is failed to comply with disclosure conditions + also concealed information’s (both) or provided false evidences.
(b) Hence abovementioned immunity to be withdrawn.
*****
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