HIGHLIGHTS OF FINANCE BILL, 2024: Proposed Tax Changes, Faceless Scheme Amendments, TCS Adjustments, and Outstanding Tax Demand Waivers
HIGHLIGHTS OF FINANCE BILL, 2024
1. Proposed Changes in Tax Rates
- No changes in tax rates are proposed by Finance Bill, 2024
Note: View PDF for Finance Bill, 2024 ‘PART I INCOME-TAX for details.
2. Proposed amendments w.r.t. Deductions and Exemptions
- Following amendments are proposed for deductions/ exemptions:
| Sections | Particulars | Existing Condition | Proposed 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 31/03/2024 | Entity may be incorporated on or before 31/03/2025 |
| 10(4D) | Exemption to specified fund | Commencement of operations on or before 31/03/2024 | Commencement of operations on or before 31/03/2025 |
| 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 |
3. Proposed 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
- It is proposed to amend the aforesaid Sections 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. Proposed amendments w.r.t. TCS
- The Finance Bill proposes 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 Bill, 2024 proposes to insert 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.
5. Proposed amendments w.r.t. Outstanding Tax Demand
- In the budget speech, Hon’ble Finance Minister proposed to withdraw or waive off the small, unresolved, unverified, or disputed direct tax demands pertaining to the financial years up to 2014-15.
- The proposal aims to waive off the recovery of the old outstanding demands up to INR 25,000 for the period up to financial year 2009-10 and up to INR 10,000 for financial years 2010-11 to 2014-15
Source Document PDF