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HIGHLIGHTS OF FINANCE ACT, 2024

Note: The contents of this document are for information purposes only, to enable public to have a quick and an easy access to information, and do not purport to be legal documents. Viewers are advised to verify the content from original Finance Act, 2024

Source: Finance Act, 2024

1. Changes in Tax Rates

The Finance Act 2024 does not bring about any changes to the tax rates

2. Amendments w.r.t. Deductions and Exemptions

Following amendments are made for deductions/ exemptions:

Sections Particulars Existing Condition Amendment
10(23FE) Exemption to the wholly owned subsidiary of ADIA or Sovereign wealth fund or pension fund

 

Exemption for specified investment between 01/04/2020 to 31/03/2024 Exemption for specified Investment between 01/04/2020 to 31/03/2025
80 – IAC Deduction for profits and gains of eligible start-ups Entity should be incorporated on or  before 3 1/03/2024 Entity may be Incorporated on or before 31/03/2025

Highlights of Finance Act, 2024

Amendments w.r.t. Deductions and Exemptions

Sections Particulars Existing Condition Amendment
10(4D) Exemption to specified Fund
10(4F) Exemption to royalty or interest income received by a non-resident from lease of aircraft or a ship  
80LA Deduction to Off- shore Banking Units and IFSC Commencement of operations on or before 31/03/2024 Commencement of operations on or before 31/03/2025

3. Amendments w.r.t. Faceless Scheme

  • To implement the faceless regime in Section 92CA, Section 144C, Section 253 and Section 255, it was provided that the CBDT shall issue the necessary directions by 31/03/2024
  • The aforesaid Sections have been amended to allow the issue of necessary directions by 31/03/2025.
  • The following faceless schemes are covered in the above sections:
Sections Particulars
92CA Faceless determination of arm’s length price
144C Faceless Dispute Resolution Panel
253 Faceless appeal to Appellate Tribunal
255 Faceless procedure of Appellate Tribunal

4. Amendments w.r.t. TCS

  • The Finance Act 2024 has brought the necessary amendments to Section 206C(1G) to restore the threshold of INR. 7 lakhs per financial year for TCS on all categories (except the sale of overseas tour program packages) of foreign remittances made under the Liberalised Remittance Scheme (LRS) w.e.f. 01-10-2023
  • In the case of ‘sale of overseas tour program package’, the TCS rate shall be 5% for remittances up to INR 7 lakh, and 20% for remittances exceeding INR 7 lakhs.
  • The Finance Act, 2024 has also inserted the sixth proviso to provide that the collection of tax at source during the period 01-07-2023 to 30-09-2023 shall be in accordance with provisions of Section 206C(1G) as they stood on 01-04-2023.

Source- incometaxindia.gov.in

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