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On August 16, 2024, President Droupadi Murmu officially granted her assent to the Finance (No 2) Bill, 2024. With this move, the bill has now become law ie. Finance (No. 2) Act, 2024. The Finance (No 2) Bill, 2024, was previously approved by both houses of Parliament, marking the conclusion of the budget exercise for the fiscal year 2024-25—the first full-fledged budget under the Modi 3.0 administration.
Budget Amendments:
- The Finance (No 2) Bill, 2024, included several important amendments proposed by Finance Minister Nirmala Sitharaman.
- Notably, one significant change pertained to the long-term capital gains tax regime on real estate.
Relaxation of Capital Gains Tax:
- Originally, the budget proposed reducing the long-term capital gains tax rate on real estate from 20% to 12.5%, but without the indexation benefit.
- However, an amendment passed on August 7 introduced flexibility for taxpayers. Now, they have the option to choose between:
- The new lower tax rate (12.5%) without indexation benefit.
- Staying with the old regime, which offers a higher tax rate but includes the indexation benefit.
- This amendment aims to provide taxpayers with more choices and aligns with the government’s efforts to balance revenue collection and investor interests.
Budgetary Process Concluded:
- With the President’s assent, the Finance (No 2) Bill, 2024, has been enacted into law, solidifying the government’s fiscal policies for the year.
- The Lok Sabha approved the bill with45 official amendments through a voice vote, and subsequently, the Rajya Sabha returned it after Finance Minister Sitharaman addressed the debate.
In summary, this assent represents a crucial step in implementing the budgetary proposals for the financial year 2024-25.
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