Amendment of Section 2 [Total Income” for the purpose of Taxation]
3. In section 2 of the Income-tax Act,—
(a) in clause (22), with effect from the 1st day of October, 2024,—
(I) after sub-clause (e) and before the long line, the following sub-clause shall be inserted, namely:—
“(f) any payment by a company on purchase of its own shares from a shareholder in accordance with the provisions of section 68 of the Companies Act, 2013 (18 of 2013.);”;
(II) in the long line, clause (iv) shall be omitted;
(b) in clause (42A), with effect from the 23rd day of July, 2024,—
(i) in the opening portion, for the words “thirty-six months”, the words “twenty-four months” shall be substituted and shall be deemed to have been substituted;
(ii) in the first proviso,—
(A) the brackets and words “(other than a unit)” shall be omitted and shall be deemed to have been omitted;
(B) for the words “thirty-six months”, the words “twenty-four months” shall be substituted and shall be deemed to have been substituted;
(iii) in the second proviso, after the words “had been substituted”, the words, brackets, letters and figures “as it stood immediately prior to the commencement of the Finance (No.2) Act, 2024” shall be inserted and shall be deemed to have been inserted;
(iv) the third proviso shall be omitted and shall be deemed to have been omitted.
Amendment of Section 10 [Exemptions from Total Income under various Heads]
4. In section 10 of the Income-tax Act,—
(a) with effect from the 1st day of April, 2025,—
(i) in clause (4D), in the Explanation, in clause (c), in sub-clause (i), item (I) shall be renumbered as item (I)(a) and after sub-item (a) as so renumbered, the following sub-item shall be inserted, namely:—
“(b) which has been granted a certificate as a retail scheme or an Exchange Traded Fund, and is regulated under the International Financial Services Centres Authority (Fund Management) Regulations, 2022, made under the International Financial Services Centres Authority Act, 2019 (50 of 2019.) and satisfies such conditions, as may be prescribed;”;
(ii) after clause (15A), the following clause shall be inserted, namely:—
‘(15B) any income of a foreign company from lease rentals, by whatever name called, of cruise ships, received from a specified company which operates such ship or ships in India, where such foreign company and the specified company are subsidiaries of the same holding company, and such income is received or accrues or arises in India for any relevant assessment year beginning on or before the 1st day of April, 2030.
Explanation.—For the purposes of this clause,-
(a) “specified company” means any company, other than a domestic company which operates cruise ships in India and opts to pay tax in accordance with the provisions of section 44BBC;
(b) “holding company”, in relation to a foreign company or a specified company, means a company of which such companies are subsidiary companies;
(c) “subsidiary company” or “subsidiary”, in relation to a holding company, means a company in which the holding company exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies.’;
(b) in clause (23C), with effect from the 1st day of October, 2024,—
(i) in the first proviso, after the words “makes an application”, the words, figures and letters “before the 1st day of October, 2024,” shall be inserted;
(ii) in the second proviso, after the words “first proviso”, the words, figures and letters “before the 1st day of October, 2024,” shall be inserted;
(iii) after the twenty-third proviso, the following proviso shall be inserted, namely:—
“Provided also that no approval under the second proviso shall be granted in relation to any application made on or after the 1st day of October, 2024.”;
(c) with effect from the 1st day of April, 2025,—
(i) in clause (23EE), in the Explanation,—
(A) in clause (i), after the words, brackets and figures “the Securities Contracts (Regulation) Act, 1956 (42 of 1956.)”, the following shall be inserted, namely:—
“or clause (n) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019.)”;
(B) in clause (ii), after the words, brackets and figures “the Securities Contracts (Regulation) Act, 1956 (42 of 1956.)”, the following shall be inserted, namely:—
“or the International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019.)”;
(ii) in clause (23FB), in the Explanation, in clause (b), in sub-clause (A), in item (II),—
(A) in the opening portion, after the words “under the Alternative Investment Funds Regulations”, the words, brackets and figures “or as referred to in sub-regulation (2) of regulation 18 of the International Financial Services Centres Authority (Fund Management) Regulations, 2022 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019.),” shall be inserted;
(B) in sub-item (ii), the word “and” shall be omitted;
(C) in sub-item (iii), for the word “or”, the word “and” shall be substituted;
(c) after sub-item (iii), the following sub-item shall be inserted, namely:—
“(iv) any other condition as may be prescribed; or”;
(d) in clause (34A), the following proviso shall be inserted with effect from the 1st day of October, 2024, namely:—
“Provided that this clause shall not apply with respect to any buy back of shares by a company on or after the 1st day of October, 2024.”;
(e) in clause (50), for the portion beginning with the words “any income arising from” and ending with the words “under that Chapter”, the following shall be substituted and shall be deemed to have been substituted with effect from the 1st day of August, 2024, namely:—
“any income arising from any—
(i) specified service provided on or after the date on which the provisions of Chapter VIII of the Finance Act, 2016 (28 of 2016.) comes into force; or
(ii) e-commerce supply or services made or provided or facilitated on or after the 1st day of April, 2020 but before the 1st day of August, 2024, and chargeable to equalisation levy under that Chapter.”.
Amendment of Section 11. [Income from Property held for Charitable or Religious Purposes.]
5. In section 11 of the Income-tax Act, in sub-section (7), with effect from the 1st day of April, 2025,—
(a) for the words, brackets, figures and letters “other than clause (1), clause (23C), clause (23EC), clause (46) and clause (46A) thereof”, the words, brackets, figures and letters “other than clause (1), clause (23C), clause (23EA), clause (23EC), clause (23ED), clause (46), clause (46A) and clause (46B) thereof” shall be substituted;
(b) in the first proviso,—
(i) for the portion beginning with the words “is notified under” and ending with the word, brackets and figures “clause (46)”, the words, brackets, figures and letters “is notified under clause (23EA) or clause (23EC) or clause (23ED) or clause (46)” shall be substituted;
(ii) after the words “whichever is later”, the words, figures, letters and brackets “, or, the 1st day of April of the previous year relevant to the assessment year for which the exemption is claimed under clause (46B) of the said section” shall be inserted;
(c) in the second proviso,—
(i) after the words “notification under”, the words, brackets, figures and letters “clause (23EA) or” shall be inserted;
(ii) after the words, brackets, figures and letters “clause (23EC) or”, the words, brackets, figures and letters “clause (23ED) or” shall be inserted.
Amendment of Section 12A [Conditions for applicability of Sections 11 and 12]
6. In section 12A of the Income-tax Act, in sub-section (1), in clause (ac) with effect from the 1st day of October, 2024,—
(a) in sub-clause (ii),—
(i) after the words, figures and letters “under section 12AB”, the words, brackets, figures and letters “or approved under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10” shall be inserted;
(ii) after the words “the period of the said registration”, the words “or approval as the case may be,” shall be inserted;
(b) in sub-clause (iii),—
(i) after the words, figures and letters “under section 12AB”, the words, brackets, figures and letters “or provisionally approved under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10” shall be inserted;
(ii) after the words “period of the provisional registration”, the words “or provisional approval as the case may be,” shall be inserted;
(c) after sub-clause (vi), the following proviso shall be inserted, namely:-
“Provided that where the application is filed beyond the time allowed in sub-clauses (i) to (vi), the Principal Commissioner or Commissioner may, if he considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed to have been filed within time.”.
Amendment of Section 12AB [Procedure for fresh Registration]
7. In section 12AB of the Income-tax Act, for sub-section (3), the following sub-section shall be substituted with effect from the 1st day of October 2024, namely:—
“(3) The order under sub-section (1) shall be passed, in such form and manner as may be prescribed, within a period of,—
(i) three months calculated from the end of the month in which the application was received in case of clause (a);
(ii) six months calculated from the end of the quarter in which the application was received in case of sub-clause (ii) of clause (b); and
(iii) one month calculated from the end of the month in which the application was received in case of clause (c).”.
Insertion of new section 12AC.
8. After section 12AB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April 2025, namely:—
Merger of charitable trusts or institutions in certain cases.
“12AC. Where any trust or institution registered under section 12AB or approved under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, as the case may be, merges with another trust or institution, the provisions of Chapter XII-EB shall not apply if—
(a) the other trust or institution has same or similar objects;
(b) the other trust or institution is registered under section 12AA or section 12AB or approved under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, as the case may be; and
(c) the said merger fulfils such conditions as may be prescribed.”.
Amendment of Section 13 [Section 11 not to apply in certain cases]
9. In section 13 of the Income-tax Act, in sub-section (1), in clause (d), in the proviso, after clause (iii), the following clause shall be inserted with effect from the 1st day of October, 2024, namely:—
“(iv) any asset referred to in sub-clauses (i), (ia) and (ii) of clause (b) of the third proviso to clause (23C) of section 10 or any accretion to the shares, forming part of the corpus mentioned in the said sub-clause (i) and (ia) and voluntary contributions referred to in sub-clause (iv) of clause (b) of the said proviso.”.
Amendment of Section 16 [Deductions from salaries]
10. In section 16 of the Income-tax Act, in clause (ia), the following proviso shall be inserted with effect from the 1st day of April, 2025, namely:—
‘Provided that in a case where income-tax is computed under clause (ii) of sub-section (1A) of section 115BAC, the provisions of this clause shall have effect as if for the words “fifty thousand rupees”, the words “seventy-five thousand rupees” had been substituted;’.
Amendment of Section 28 [Profits and Gains of Business or Profession]
11. In section 28 of the Income-tax Act, after Explanation 2, the following Explanation shall be inserted with effect from the 1st day of April, 2025, namely:—
‘Explanation 3.—It is hereby clarified that any income from letting out of a residential house or a part of the house by the owner shall not be chargeable under the head “Profits and gains of business or profession” and shall be chargeable under the head “Income from house property”.’.
Amendment of Section 36 [Other Deductions]
12. In section 36 of the Income-tax Act, in sub-section (1), in clause (iva), for the words “ten per cent.”, the words “fourteen per cent.” shall be substituted with effect from the 1st day of April, 2025.
Amendment of Section 37 [General]
13. In section 37 of the Income-tax Act, in sub-section (1), in Explanation 3, in clause (iii), for the words “outside India”, the following shall be substituted with effect from 1st day of April, 2025, namely:—
“outside India; or
(iv) to settle proceedings initiated in relation to contravention under such law as may be notified by the Central Government in the Official Gazette in this behalf.”.
Amendment of Section 40 [Amounts not Deductible]
14. In section 40 of the Income-tax Act, in clause (b), in sub-clause (v), in item (a), with effect from the 1st day of April, 2025, —
(a) for the letters and figures “Rs. 3,00,000”, the letters and figures “Rs. 6,00,000” shall be substituted;
(b) for the letters and figures “Rs. 1,50,000”, the letters and figures “Rs. 3,00,000” shall be substituted.
Amendment of Section 43D [Special provision in case of income of public financial institutions, public companies, etc.]
15. In section 43D of the Income-tax Act, with effect from the 1st day of April, 2025,—
(i) in the marginal heading, the words “public companies,” shall be omitted;
(ii) clause (b) shall be omitted;
(iii) in the long line, the words “or the public company” shall be omitted;
(iv) in the Explanation, clauses (a) and (b) shall be omitted.
Amendment of Section 44B [Special provision for computing profits and gains of shipping business in the case of non-residents.]
16. In section 44B of the Income-tax Act, with effect from the 1st day of April, 2025,—
(a) for the marginal heading, the following marginal heading shall be substituted, namely:—
“Special provision for computing profits and gains of shipping business other than cruise shipping in case of non-residents”;
(b) in sub-section (1), after the words “business of operation of ships,”, the words, figures and letters “other than cruise ships referred to in section 44BBC,” shall be inserted.
Insertion of new section 44BBC.
17. After section 44BBB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2025, namely:—
Special provision for computing profits and gains of business of operation of cruise ships in case of nonresidents.
‘44BBC. (1) Notwithstanding anything to the contrary contained in sections 28 to 43A, in the case of an assessee, being a non-resident, engaged in the business of operation of cruise ships subject to such conditions as may be prescribed, a sum equal to twenty per cent. of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession”.
(2) The amounts referred to in sub-section (1) shall be the following, namely:—
(a) the amount paid or payable to the assessee or to any person on his behalf on account of the carriage of passengers; and
(b) the amount received or deemed to be received by or on behalf of the assessee on account of the carriage of passengers.’.
Amendment of Section 46A [Capital gains on purchase by company of its own shares or other specified securities.]
18. In section 46A of the Income-tax Act, the following proviso shall be inserted before the Explanation, with effect from the 1st day of October, 2024, namely:—
“Provided that where the shareholder receives any consideration of the nature referred to in sub-clause (f) of clause (22) of section 2 from any company, in respect of any buy-back of shares, that takes place on or after the 1st day of October, 2024, then for the purposes of this section, the value of consideration received by the shareholder shall be deemed to be nil.”.
Amendment of Section 47 [Transactions not regarded as transfer]
19. In section 47 of the Income-tax Act, for clause (iii), the following clause shall be substituted with effect from the 1st day of April, 2025, namely:—
“(iii) any transfer of a capital asset by an individual or a Hindu undivided family, under a gift or will or an irrevocable trust;”.
Amendment of section 48 [Mode of computation]
20. In section 48 of the Income-tax Act, in the second proviso, after the words “where long-term capital gain arises from the transfer”, the brackets, words, figures and letters “(which takes place before the 23rd day of July, 2024)” shall be inserted and shall be deemed to have been inserted with effect from the 23rd day of July, 2024.
Amendment of Section 50AA [Special provision for computation of capital gains in case of Market Linked Debenture]
21. In section 50AA of the Income-tax Act,—
(a) for the portion beginning with the words “Notwithstanding anything contained in” and ending with the words “short-term capital asset:”, the following shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:—
“Notwithstanding anything contained in clause (42A) of section 2 or section 48, where the capital asset-
(a) is a unit of a Specified Mutual Fund acquired on or after the 1st day of April, 2023 or a Market Linked Debenture; or
(b) is an unlisted bond or an unlisted debenture which is transferred or redeemed or matures on or after the 23rd day of July, 2024, the full value of consideration received or accruing as a result of the transfer or redemption or maturity of such debenture or unit or bond as reduced by—
(i) the cost of acquisition of the debenture or unit or bond; and
(ii) the expenditure incurred wholly and exclusively in connection with such transfer or redemption or maturity,
shall be deemed to be the capital gains arising from the transfer of a short-term capital asset:”;
(b) in the Explanation, for clause (ii), the following clause shall be substituted with effect from the 1st day of April, 2026, namely:—
‘(ii) “Specified Mutual Fund” means,—
(a) a Mutual Fund by whatever name called, which invests more than sixty-five per cent. of its total proceeds in debt and money market instruments; or
(b) a fund which invests sixty-five per cent. or more of its total proceeds in units of a fund referred to in sub-clause (a):
Provided that the percentage of investment in debt and money market instruments or in units of a fund, as the case may be, in respect of the Specified Mutual Fund, shall be computed with reference to the annual average of the daily closing figures:
Provided further that for the purposes of this clause, “debt and money market instruments” shall include any securities, by whatever name called, classified or regulated as debt and money market instruments by the Securities and Exchange Board of India.’.
Amendment of Section 55 [ Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”.]
22. In section 55 of the Income-tax Act, in sub-section (2), in clause (ac), in the Explanation, in clause (a), in sub-clause (iii), after item (A), the following item shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2018, namely:—
“(AA) not listed on a recognised stock exchange as on the 31st day of January, 2018, or which became the property of the assessee in consideration of share which is not listed on such exchange as on the 31st day of January, 2018 by way of transaction not regarded as transfer under section 47, as the case may be, but listed on such exchange subsequent to the date of transfer (where such transfer is in respect of sale of unlisted equity shares under an offer for sale to the public included in an initial public offer);”.
Amendment of Section 56 [Income from other sources]
23. In section 56 of the Income-tax Act, in sub-section (2), in clause (viib), after the second proviso, the following proviso shall be inserted with effect from the 1st day of April, 2025, namely:—
“Provided also that the provisions of this clause shall not apply on or after the 1st day of April, 2025.”.
Amendment of Section 57 [Deductions]
24. In section 57 of the Income-tax Act,—
(i) with effect from the 1st day of October, 2024, —
(a) in clause (i), after the words “in the case of dividends,”, the words, brackets, letter and figures “other than that referred in sub-clause (f) of clause (22) of section 2” shall be inserted;
(b) after the proviso, the following proviso shall be inserted, namely:—
“Provided further that no deduction shall be allowed in case of dividend income of the nature referred to in sub-clause (f) of clause (22) of section 2.”;
(ii) in clause (iia), before the Explanation, the following proviso shall be inserted with effect from the 1st day of April, 2025, namely:—
‘Provided that in a case where income-tax is computed under clause (ii) of sub-section (1A) of section 115BAC, the provisions of this clause shall have effect as if for the words “fifteen thousand rupees”, the words “twenty-five thousand rupees” had been substituted;’.
Amendment of section 80CCD [Deduction in respect of contribution to pension scheme of Central Government.]
25. In section 80CCD of the Income-tax Act, in sub-section (2), the following proviso shall be inserted with effect from the 1st day of April, 2025, namely:—
‘Provided that where the total income of the assessee is chargeable to tax under sub-section (1A) of section 115BAC, the provisions of sub-section (2) shall have effect as if for the words “ten per cent.” referred to in clause (b), the words “fourteen per cent.” had been substituted.’.
Amendment of section 80G [Deduction in respect of donations to certain funds, charitable institutions, etc.]
26. In section 80G of the Income-tax Act,—
(a) in sub-section (2), in clause (a), in sub-clause (iiihg), for the words “the National Sports Fund to be set up”, the words “the National Sports Development Fund set up” shall be substituted with effect from the 1st day of April, 2025;
(b) in sub-section (5), with effect from the 1st day of October, 2024,—
(I) in the first proviso,—
(i) in clause (iii), for the words “whichever is earlier;”, the words “whichever is earlier; or” shall be substituted;
(ii) in clause (iv),—
(a) the words “in any other case,” shall be omitted;
(b) in sub-clause (B), the portion beginning with the words “and where no income or part” and ending with the words “such application,” shall be omitted;
(II) in the second proviso, in clause (ii), in sub-clause (b), for item (B), the following item shall be substituted, namely:—
“(B) if he is not so satisfied, pass an order in writing, rejecting such application and cancelling its approval, if any, after affording it a reasonable opportunity of being heard;”;
(III) for the third proviso, the following proviso shall be substituted, namely:—
“Provided also that the order under clause (i) and clause (iii) of the second proviso shall be passed in such form and manner as may be prescribed, before expiry of the period of three months and one month, as the case may be, calculated from the end of the month in which the application was received:”;
(IV) after the third proviso, the following proviso shall be inserted, namely:—
“Provided also that the order under sub-clause (b) of clause (ii) of the second proviso shall be passed in such form and manner as may be prescribed, before expiry of the period of six months from the end of the quarter in which the application was received:”.
Amendment of Section 92CA [Reference to Transfer Pricing Officer]
27. In section 92CA of the Income-tax Act, with effect from the 1st day of April, 2025,—
(a) in sub-section (2A),—
(i) for the words and bracket “any other international transaction [other than an international transaction”, the words and bracket “any other international transaction or specified domestic transaction [other than an international transaction or a specified domestic transaction” shall be substituted;
(ii) for the words “if such other international transaction is an international transaction”, the words “if such other international transaction or a specified domestic transaction is an international transaction or a specified domestic transaction” shall be substituted;
(b) in the sub-section (2B),—
(i) after the words “Where in respect of an international transaction”, the words “or a specified domestic transaction” shall be inserted;
(ii) for the words “such transaction is an international transaction”, the words “such transaction is an international transaction or a specified domestic transaction” shall be substituted.
Amendment of Section 94B [Limitation on interest deduction in certain cases]
28. In section 94B of the Income-tax Act, with effect from the 1st day of April, 2025,—
(a) in sub-section (3), after the words “banking or insurance”, the words “or a Finance Company located in any International Financial Services Centre,” shall be inserted;
(b) in sub-section (5), after clause (iii), the following clauses shall be inserted, namely:—
‘(iv) “Finance Company” means a finance company as defined in clause (e) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Finance Company) Regulations, 2021 made under the International Financial Services Centres Authority Act, 2019 (50 of 2019.) and which satisfies such conditions and carries on such activities, as may be prescribed;
(v) “International Financial Services Centre” shall have the meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005.).’.
Amendment of Section 111A [Tax on short term capital gains in certain cases]
29. In section 111A of the Income-tax Act, in sub-section (1) with effect from the 23rd day of July, 2024,—
(a) for the long line occurring before the first proviso, the following shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:—
“the tax payable by the assessee on the total income shall be the aggregate of—
(i) the amount of income-tax calculated on such short-term capital gains—
(a) at the rate of fifteen per cent. for any transfer which takes place before the 23rd day of July, 2024; and
(b) at the rate of twenty per cent. for any transfer which takes place on or after the 23rd day of July, 2024;
(ii) the amount of income-tax payable on the balance amount of the total income as if such balance amount were the total income of the assessee:”;
(b) in the first proviso, for the words “rate of fifteen per cent.”, the words, brackets and figure “rate as applicable in clause (i)” shall be substituted and shall be deemed to have been substituted.
Amendment of Section 112 [tax on long-term capital gains.]
30. In section 112 of the Income-tax Act, in sub-section (1), for the clauses (a), (b), (c), (d) and the first proviso, the following shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:-
“(a) in the case of an individual or a Hindu undivided family, being a resident,—
(i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been his total income; and
(ii) the amount of income-tax calculated on such long-term capital gains,—
(A) at the rate of twenty per cent. for any transfer which takes place before the 23rd day of July, 2024;
and
(B) at the rate of twelve and one-half per cent. for any transfer which takes place on or after the 23rd day of July, 2024:
Provided that where the total income as reduced by such long-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such long-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such long-term capital gains shall be computed at the rate as applicable in sub-clause (ii);
(b) in the case of a domestic company,—
(i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been its total income; and
(ii) the amount of income-tax calculated on such long-term capital gains,—
(A) at the rate of twenty per cent. for any transfer which takes place before the 23rd day of July, 2024;
and
(B) at the rate of twelve and one-half per cent. for any transfer which takes place on or after the 23rd day of July, 2024;
(c) in the case of a non-resident (not being a company) or a foreign company,—
(i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been its total income; and
(ii) the amount of income-tax calculated on such long-term capital gains, __
(A) at the rate of twenty per cent. for any transfer [other than a transfer referred to in sub-clause (iii)] which takes place before the 23rd day of July, 2024;
and
(B) at the rate of twelve and one-half per cent. for any transfer which takes place on or after the 23rd day of July, 2024;
(iii) the amount of income-tax on long-term capital gains arising from the transfer of a capital asset which takes place before the 23rd day of July, 2024, being unlisted securities or shares of a company not being a company in which the public are substantially interested, calculated at the rate of ten per cent. on the capital gains in respect of such asset as computed without giving effect to the first and second proviso to section 48;
(d) in any other case of a resident,—
(i) the amount of income-tax payable on the total income as reduced by the amount of long-term capital gains, had the total income as so reduced been its total income; and
(ii) the amount of income-tax calculated on such long-term capital gains,—
(A) at the rate of twenty per cent. for any transfer which takes place before the 23rd day of July, 2024;
and
(B) at the rate of twelve and one-half per cent. for any transfer which takes place on or after the 23rd day of July, 2024:
Provided that where the tax payable in respect of any income arising from the transfer of a long-term capital asset which takes place before the 23rd day of July, 2024, being listed securities (other than a unit) or zero coupon bond, exceeds ten per cent. of the amount of capital gains before giving effect to the provisions of the second proviso to section 48, then, such excess shall be ignored for the purpose of computing the tax payable by the assessee :”.
Amendment of Section 112A [Tax on long-term capital gains in certain cases]
31. In section 112A of the Income-tax Act, in sub-section (2), for clause (i) the following shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:—
“(i) the amount of income-tax calculated on such long-term capital gains exceeding one lakh twenty-five thousand rupees—
(a) on long-term capital gains at the rate of ten per cent. for any transfer which takes place before the 23rd day of July, 2024; and
(b) on long-term capital gains, at the rate of twelve and one-half per cent. for any transfer which takes place on or after the 23rd day of July, 2024:
Provided that the limit of one lakh twenty-five thousand rupees shall apply on aggregate of the long-term capital gains under sub-clauses (a) and (b);”.
Amendment of Section 113 [Tax in the case of block assessment of search cases]
32 In section 113 of the Income-tax Act, with effect from the 1st day of September, 2024,—
(a) the word “undisclosed” shall be omitted;
(b) in the proviso, the words, figures and letters beginning with “and applicable” and ending with “under section 132A” shall be omitted.
Amendment of Section 115AB [Tax on income from units purchased in foreign currency or capital gains arising from their transfer]
33. In section 115AB of the Income-tax Act, in sub-section (1), in the longline, for clause (ii), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:—
“(ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income,—
(A) at the rate of ten per cent. for any transfer which takes place before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer which takes place on or after the 23rd day of July, 2024: and”.
Amendment of Section 115AC [Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer]
34. In section 115AC of the Income-tax Act, in sub-section (1), in the long line, for clause (ii), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:—
“(ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (c), if any, included in the total income, –
(A) at the rate of ten per cent. for any transfer which takes place before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer which takes place on or after the 23rd day of July, 2024; and”.
Amendment of Section 115ACA [Tax on income from Global depository receipts purchased in foreign currency or capital gains arising from their transfer]
35. In section 115ACA of the Income-tax Act, in sub-section (1), in the longline, for clause (ii), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:—
“(ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income,—
(A) at the rate of ten per cent. for any transfer which takes place before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer which takes place on or after the 23rd day of July, 2024; and”.
Amendment of Section 115AD [Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer]
36. In section 115AD of the Income-tax Act, in sub-section (1) with effect from the 23rd day of July, 2024,—
(a) in the longline, in clause (ii), for the proviso, the following proviso shall be substituted and shall be deemed to have been substituted, namely:—
“Provided that the amount of income-tax calculated on the income by way of short-term capital gains referred to in section 111A shall be at the rate of—
(A) fifteen per cent. for any transfer which takes place before the 23rd day of July, 2024; and
(B) twenty per cent. for any transfer which takes place on or after the 23rd day of July, 2024;”
(b) in clause (iii), for the proviso, the following provisos shall be substituted and shall be deemed to have been substituted, namely:—
“Provided that in case of income arising from the transfer of a long-term capital asset referred to in section 112A which exceeds one lakh and twenty-five thousand rupees, income-tax shall be calculated at the rate of—
(A) ten per cent. where transfer of such asset takes place before the 23rd day of July, 2024; and
(B) twelve and one-half per cent. where transfer of such asset takes place on or after the 23rd day of July, 2024:
Provided further that the limit of one lakh twenty-five thousand rupees mentioned in the first proviso shall apply on aggregate of the long-term capital gains referred to in clauses (A) and (B); and”.
Amendment of Section 115BAC [Tax on income of individuals, Hindu undivided family and others]
37..In section 115BACof the Income-tax Act, for sub-section (1A), the following sub-section shall be substituted with effect from the 1st day of April, 2025, namely:—
“(1A) Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, the income-tax payable in respect of the total income of a person, being an individual or Hindu undivided family or association of persons (other than a co-operative society), or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2, other than a person who has exercised an option under sub-section (6),—
(i) for any previous year relevant to the assessment year beginning on the 1st day of April, 2024, shall be computed at the rate of tax given in the following Table, namely:—
TABLE
| Sl. No. | Total income | Rate of tax |
| (1) | (2) | (3) |
| 1. | Upto Rs. 3,00,000 | Nil |
| 2. | From Rs. 3,00,001 to Rs. 6,00,000 | 5 per cent. |
| 3. | From Rs. 6,00,001 to Rs. 9,00,000 | 10 per cent. |
| 4. | From Rs. 9,00,001 to Rs. 12,00,000 | 15 per cent. |
| 5. | From Rs. 12,00,001 to Rs. 15,00,000 | 20 per cent. |
| 6. | Above Rs. 15,00,000 | 30 per cent.; |
(ii) for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2025, shall be computed at the rate of tax given in the following Table, namely:—
TABLE
| Sl. No. | Total income | Rate of tax |
| (1) | (2) | (3) |
| 1. | Upto Rs. 3,00,000 | Nil |
| 2. | From Rs. 3,00,001 to Rs. 7,00,000 | 5 per cent. |
| 3. | From Rs. 7,00,001 to Rs. 10,00,000 | 10 per cent. |
| 4. | From Rs. 10,00,001 to Rs. 12,00,000 | 15 per cent. |
| 5. | From Rs. 12,00,001 to Rs. 15,00,000 | 20 per cent. |
| 6. | Above Rs. 15,00,000 | 30 per cent.”. |
Amendment of Section 115E [Tax on investment income and long-term capital gains]
38. In section 115E of the Income-tax Act, in the longline, for clause (ii), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:—
“(ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income,—
(A) at the rate of ten per cent. for any transfer which takes place before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer which takes place on or after the 23rd day of July, 2024; and”.
Amendment of Section 115QA [Tax on distributed income to shareholders]
39. In section 115QA of the Income-tax Act, in sub-section (1), after the proviso and before the Explanation, the following proviso shall be inserted with effect from the 1st day of October, 2024, namely:—
“Provided further that the provisions of this sub-section shall not apply in respect of any buy-back of shares, that takes place on or after the 1st day of October, 2024.”.
Amendment of Section 132B [Application of seized or requisitioned assets]
40. In section 132B of the Income-tax Act, in sub-section (1), in clause (i), for the words and figures “and the Interest-tax Act, 1974”, the words, brackets and figures “the Interest-tax Act, 1974 (45 of 1974.) and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015.)” shall be substituted with effect from the 1st day of October, 2024.
Amendment of Section 139 [Return of income]
41. In section 139 of the Income-tax Act, after sub-section (9) and the proviso to the Explanation thereof, the following sub-section shall be inserted with effect from the 1st day of October, 2024, namely:—
“(9A) Where any return of income is furnished in pursuance of an order under clause (b) of sub-section (2) of section 119, the provisions of this section shall apply.”.
Amendment of Section 139AA [Quoting of Aadhaar number]
42. In section 139AA of the Income-tax Act, with effect from the 1st day of October, 2024,—
(a) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:—
“Provided further that nothing in the first proviso shall apply in respect of any application form for allotment of permanent account number or return of income furnished on or after the 1st day of October, 2024.”;
(b) after sub-section (2), the following sub-section shall be inserted, namely:—
“(2A) Every person who has been allotted permanent account number on the basis of Enrolment ID of Aadhaar application form filed prior to the 1st day of October, 2024, shall intimate his Aadhaar number to such authority in such form and manner, as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette.”.
Amendment of Section 144C [Reference to Dispute Resolution Panel]
43. In section 144C of the Income-tax Act, with effect from the 1st day of September, 2024,—
(i) in sub-section (15), in clause (b), the following proviso shall be inserted, namely:—
“Provided that such eligible assessee shall not include person referred to in sub-section (1) of section 158BA or other person referred to in section 158BD.”;
(ii) after sub-section (15), the following sub-section shall be inserted, namely:—
“(16) The provisions of this section shall not apply to any proceedings under Chapter XIV-B.”.
Amendment of Section 152 [Other provisions]
47. In section 152 of the Income-tax Act, after sub-section (2), the following sub-sections shall be inserted with effect from the 1st day of September, 2024, namely:—
“(3) Where a search has been initiated under section 132 or requisition is made under section 132A, or a survey is conducted under section 133A [other than under sub-section (2A) of the said section], on or after the 1st day of April, 2021 but before the 1st day of September, 2024, the provisions of sections 147 to 151 shall apply as they stood immediately before the commencement of the Finance (No. 2) Act, 2024.
(4) Where a notice under section 148 has been issued or an order under clause (d) of section 148A has been passed, prior to the 1st day of September, 2024, the assessment, reassessment or recomputation in such case shall be governed as per the provisions of sections 147 to 151, as they stood immediately before the commencement of the Finance (No. 2) Act, 2024.”.
Amendment of Section 153 [Time limit for completion of assessment, reassessment and recomputation]
48. In section 153 of the Income-tax Act, with effect from the 1st day of October, 2024,—
(I) after sub-section (1A), the following sub-section shall be inserted, namely:—
“(1B) Notwithstanding anything in sub-section (1), where a return is furnished in consequence of an order under clause (b) of sub-section (2) of section 119, an order of assessment under section 143 or section 144 may be made at any time before the expiry of twelve months from the end of the financial year in which such return was furnished.”;
(II) in sub-section (3), for the words and figures “order under section 254” wherever they occur, the words and figures “order under section 250 or section 254” shall be substituted;
(III) in sub-section (8),—
(i) for the word, figures and letter “section 153B” at both the places where they occur, the words, figures and letters “section 153B or section 158BE” shall be substituted;
(ii) for the words, brackets, figures and letter “revived under sub-section (2) of section 153A”, the words, brackets, figures and letters “revived under sub-section (2) of section 153A or sub-section (5) of section 158BA” shall be substituted;
(IV) in Explanation 1, after the fifth proviso, the following proviso shall be inserted, namely:—
“Provided also that where after exclusion of the period referred to in clause (xii), the period of limitation for making an order of assessment, reassessment or recomputation, as the case may be, ends before the end of the month, such period shall be extended to the end of such month.”.
Amendment of Section 192 [Salary]
50. In section 192 of the Income-tax Act, with effect from the 1st day of October, 2024,—
(I) in sub-section (1C), for the words, brackets and figures “clause (vi) of sub-section (2)”, the words, brackets and figures “sub-clause (vi) of clause (2)” shall be substituted;
(II) in sub-section (2A), the words, brackets and figure “sub-section (1) of” shall be omitted;
(III) for sub-section (2B), the following sub-section shall be substituted, namely:—
‘(2B) Where an assessee who receives any income chargeable under the head “Salaries” has, in addition, —
(i) any income chargeable under any other head of income (not being a loss under any such head other than the loss under the head “Income from house property”); or
(ii) any tax deducted or collected under the provisions of Part B or Part BB of this Chapter, as the case may be,
for the same financial year, he may send to the person responsible for making the payment referred to in sub-section (1), the particulars of—
(a) such other income;
(b) any tax deducted or collected under any other provision of Part B or Part BB of this Chapter, as the case may be; and
(c) the loss, if any, under the head “Income from house property”,
in such form and verified in such manner as may be prescribed, and thereupon the person responsible as aforesaid shall take into account the particulars referred to in clauses (a), (b) and (c) for the purposes of making the deduction under sub- section (1):
Provided that this sub-section shall not in any case have the effect of reducing the tax deductible except where the loss under the head “Income from house property” has been taken into account, from income under the head “Salaries” below the amount that would be so deductible if the other income and the tax deducted in accordance with other provisions of Part B and collected in accordance with the provisions of Part BB, of this Chapter, had not been taken into account.’.
Amendment of Section 193 [Interest on securities]
51. In section 193of the Income-tax Act, in the proviso, in clause (iv), for the proviso, the following proviso shall be substituted with effect from the 1st day of October, 2024, namely:—
“Provided that nothing in this clause shall apply to the interest exceeding ten thousand rupees payable during the financial year on 8 per cent. Savings (Taxable) Bonds, 2003 or 7.75 per cent. Savings (Taxable) Bonds, 2018 or Floating Rate Savings Bonds, 2020 (Taxable) or any other security of the Central Government or State Government as the Central Government may, by notification in the Official Gazette, specify in this behalf;”.
Amendment of Section 194 [Dividends]
52. In section 194of the Income-tax Act, after the word, brackets and letter “sub-clause (e)”, the words, brackets and letter “or sub-clause (f)” shall be inserted with effect from the 1st day of October, 2024.
Amendment of Section 194C [Payments to contractors]
53. In section 194Cof the Income-tax Act, in the Explanation, in clause (iv), for the long line, the following long line shall be substituted with effect from 1st day of October, 2024, namely:—
“but does not include—
(A) manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer or associate of such customer; or
(B) any sum referred to in sub-section (1) of section 194J.”.
Amendment of Section 194DA [Payment in respect of life insurance policy]
54. In section 194DAof the Income-tax Act, for the words “five per cent.”, the words “two per cent.” shall be substituted with effect from the 1st day of October, 2024.
Omission of Section 194F [Payments on account of repurchase of units by Mutual Fund or Unit Trust of India]
55. Section 194Fof the Income-tax Act shall be omitted with effect from the 1st day of October, 2024.
Amendment of Section 194G [Commission, etc., on the sale of lottery tickets]
56. In section 194Gof the Income-tax Act, for the words “five per cent.”, the words “two per cent.” shall be substituted with effect from the 1st day of October, 2024.
Amendment of Section 194H [Commission or brokerage]
57. In section 194Hof the Income-tax Act, for the words “five per cent.”, the words “two per cent.” shall be substituted with effect from the 1st day of October, 2024.
Amendment of Section 194-IA [Payment on transfer of certain immovable property other than agricultural land]
58. In section 194-IAof the Income-tax Act, in sub-section (2), the following proviso shall be inserted with effect from the 1st day of October, 2024, namely:—
“Provided that where there is more than one transferor or transferee in respect of any immovable property, then the consideration 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.”.
Amendment of Section 194-IB [ Payment of rent by certain individuals or Hindu undivided family]
59. In section 194-IBof the Income-tax Act, in sub-section (1), for the words “five per cent.”, the words “two per cent.” shall be substituted with effect from the 1st day of October, 2024.
Amendment of Section 194-O [Payment of certain sums by e-commerce operator to e-commerce participant.]
61. In section 194-Oof the Income-tax Act, in sub-section (1), for the words “one per cent.”, the figures and word “0.1 per cent.” shall be substituted with effect from the 1st day of October, 2024.
Insertion of new Section 194T.
62. After section 194Sof the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2025, namely:—
Payments to partners of firms.
“194T. (1) Any person, being a firm, responsible for paying any sum in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm, shall, at the time of credit of such sum to the account of the partner (including the capital account) or at the time of payment thereof, whichever is earlier shall, deduct income-tax thereon at the rate of ten per cent.
(2) No deduction shall be made under sub-section (1) where such sum or the aggregate of such sums credited or paid or likely to be credited or paid to the partner of the firm does not exceed twenty thousand rupees during the financial year.”.
Amendment of Section 196B [Income from units]
63. In section 196Bthe Income-tax Act, for the words “at the rate of ten per cent.”, the following shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:–
“at the rate of—
(a) ten per cent.in respect of income from units referred to in clause (i) of sub-section (1) of section 115AB;
(b) ten per cent.in respect of long-term capital gains arising from transfer of units referred to in section 115AB, which takes place before the 23rd day of July, 2024;
(c) twelve and one-half per cent. in respect of long-term capital gains arising from transfer of units referred to in section 115AB, which takes place on or after the 23rd day of July, 2024.”.
Amendment of Section 196C [Income from foreign currency bonds or shares of Indian company]
64. In section 196Cof the Income-tax Act, for the words “at the rate of ten per cent.”, the following shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:—
“at the rate of—
(a) ten per cent. in respect of income by way of interest or dividends in respect of bonds or Global Depository Receipts referred to in section 115AC;
(b) ten per cent. in respect of long-term capital gains arising from transfer of such bond or Global Depository Receipts referred to in section 115AC which takes place before the 23rd day of July, 2024;
(c) twelve and one-half per cent. in respect of long-term capital gains arising from transfer of such bond or Global depository Receipts referred to in section 115AC which takes place on or after the 23rd day of July, 2024.”.
Amendment of Section 197 [Certificate for deduction at lower rate]
65. In section 197of the Income-tax Act, in sub-section (1), for the figures and letter “194-O”, the figures and letters “194-O, 194Q” shall be substituted with effect from the 1st day of October, 2024.
Amendment of Section 198 [Tax deducted is income received]
66. In section 198of the Income-tax Act, after the words “this Chapter”, the words “and income tax paid outside India, by way of deduction, in respect of which an assessee is allowed a credit against the tax payable under this Act,” shall be inserted with effect from the 1st day of April, 2025.
Amendment of Section 200 [Duty of person deducting tax]
67. In section 200of the Income-tax Act, in sub-section (3), after the proviso, the following proviso shall be inserted with effect from the 1st day of April, 2025, namely:—
“Provided further that no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the statement referred to in sub-section (3) is required to be delivered.”.
Amendment of Section 200A [Processing of statements of tax deducted at source]
68. In section 200Aof the Income-tax Act, with effect from the 1st day of April, 2025,—
(a) in the marginal heading, for the word “source”, the words “source and other statements” shall be substituted;
(b) after sub-section (2), the following sub-section shall be inserted, namely:—
“(3) The Board may make a scheme for processing of statements made by any other person, not being a deductor.”.
Amendment of Section 201[Consequences of failure to deduct or pay]
69. In section 201of the Income-tax Act, in sub-section (3), with effect from the 1st day of April, 2025,—
(i) for the words “a person resident in India, at any time after the expiry of seven years”, the words “any person, at any time after the expiry of six years” shall be substituted;
(ii) for the words “under the proviso”, the words “under the first proviso” shall be substituted.
Amendment of Section 206C [Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc.]
70. In section 206Cof the Income-tax Act, —
(a) for sub-section (1F), the following sub-section shall be substituted with effect from the 1st day of January, 2025, namely:—
“(1F) Every person, being a seller, who receives any amount as consideration for sale of–
(i) a motor vehicle; or
(ii) any other goods, as may be specified by the Central Government by notification in the Official Gazette, of the value exceeding ten lakh rupees, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to one per cent. of the sale consideration as income-tax.”;
(b) in sub-section (3B), the following proviso shall be inserted with effect from the 1st day of April, 2025, namely:—
“Provided that no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the statement referred to in the proviso to sub-section (3) is required to be delivered.”;
(c) in sub-section (4), after the words “such person”, the words “or any other person eligible for credit” shall be inserted with effect from the 1st day of January, 2025;
(d) with effect from the 1st day of April, 2025,—
(i) in sub-section (7), for the words “interest at the rate of one per cent. per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid and such interest shall be paid”, the following shall be substituted, namely:—
“interest–
(a) at the rate of one per cent. for every month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which such tax is collected; and
(b) at the rate of one and one-half per cent. for every month or part thereof on the amount of such tax from the date on which such tax was collected to the date on which such tax is actually paid, and such interest shall be paid”;
(ii) after sub-section (7), the following sub-section shall be inserted, namely: —
“(7A) No order shall be made under sub-section (6A) deeming a person to be an assessee in default for failure to collect the whole or any part of the tax from any person, at any time after the expiry of six years from the end of the financial year in which tax was collectible or two years from the end of the financial year in which the correction statement is delivered under sub-section (3B), whichever is later.”;
(e) with effect from the 1st day of October, 2024,—
(i) in sub-section (9), for the words, brackets, figures and letter “sub-section (1) or sub-section (1C)” at both the places where they occur, the words, brackets, figures and letters “sub-section (1), sub-section (1C) or sub-section (1H)” shall be substituted;
(ii) after sub-section (11), the following sub-section shall be inserted, namely:—
“(12) Notwithstanding anything contained in this section, no collection of tax shall be made or collection of tax shall be made at such lower rate in respect of specified transaction, from such person or class of persons, including institution, association or body or class of institutions, associations or bodies, as the Central Government may, by notification in the Official Gazette specify in this behalf.”.
Amendment of Section 230 [Tax clearance certificate]
71. In section 230of the Income-tax Act, in sub-section (1A), in the proviso, in the long line, after the words and figures “the Expenditure-tax Act, 1987 (35 of 1987.),”, the words, brackets and figures “or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015.),” shall be inserted with effect from the 1st day of October, 2024.
Amendment of Section 244A [Interest on refunds.]
72. In section 244Aof the Income-tax Act, in sub-section (1A), in the proviso, for the words “with the date on which such assessment or reassessment is made”, the words “with the date up to which such refund is withheld” shall be substituted with effect from the 1st day of October, 2024.
Amendment of Section 245 [Set off and withholding of refunds in certain cases
73. In section 245of the Income-tax Act, in sub-section (2), with effect from the 1st day of October, 2024,—
(a) the words “is of the opinion that the grant of refund is likely to adversely affect the revenue,” shall be omitted;
(b) after the words “withhold the refund up to”, the words “sixty days from” shall be inserted.
Amendment of section 245Q [Application for advance ruling].
74. In section 245Qof the Income-tax Act, in sub-section (4), the following proviso shall be inserted with effect from the 1st day of October, 2024, namely:—
“Provided that the applicant may, on or before the 31st day of October, 2024, request the Board for Advance Rulings in writing that the application so transferred may not be proceeded with, if up to the date of such request, the Board for Advance Rulings has not passed an order under sub-section (2) of section 245R.”.
Amendment of section 245R [ Procedure on receipt of application]
75. In section 245Rof the Income-tax Act, in sub-section (2), after the third proviso, the following proviso shall be inserted with effect from the 1st day of October, 2024, namely:-
“Provided also that on receipt of an application under the proviso to sub-section (4) of section 245Q, the Board for Advance Rulings may, by an order, reject the application referred to in sub-section (1) thereof as withdrawn on or before the 31st day of December, 2024.”.
Amendment of section 246A [Appealable orders before Commissioner (Appeals)].
76. In section 246Aof the Income-tax Act, in sub-section (1), after clause (k), the following clause shall be inserted, with effect from the 1st day of September, 2024, namely:—
“(ka) an order of assessment made by an Assessing Officer under clause (c) of sub-section (1) of section 158BC, in respect of search initiated under section 132, or books of account, other documents or any assets requisitioned under section 132A, on or after the 1st day of September, 2024;”.
Amendment of section 251[Powers of the Joint Commissioner (Appeals) or the Commissioner (Appeals)].
77. In section 251of the Income-tax Act, in sub-section (1), in clause (a), the following proviso shall be inserted with effect from the 1st day of October, 2024, namely:—
“Provided that where such appeal is against an order of assessment made under section 144, he may set aside the assessment and refer the case back to the Assessing Officer for making a fresh assessment;”.
Amendment of section 253 [Appeals to the Appellate Tribunal].
78. In section 253of the Income-tax Act, with effect from the 1st day of October, 2024,—
(a) in sub-section (1), in clause (a), after word and figures “section 154,”, the word, figures and letters “section 158BFA,” shall be inserted;
(b) in sub-section (3), for the words “sixty days of the date on”, the words “two months from the end of the month in” shall be substituted.
Amendment of section 271FAA [Penalty for furnishing inaccurate statement of financial transaction or reportable account].
79. In section 271FAAof the Income-tax Act, for sub-section (1), the following sub-section shall be substituted with effect from the 1st day of October, 2024, namely:—
“(1) If a person referred to in sub-section (1) of section 285BA, who is required to furnish a statement under that section,—
(a) provides inaccurate information in the statement or fails to furnish correct information within the period specified under sub-section (6) of the said section; or
(b) fails to comply with the due diligence requirement prescribed under sub-section (7) of the said section,
then, the prescribed income-tax authority referred to in sub-section (1) thereof may direct that such person shall pay, by way of penalty, a sum of fifty thousand rupees.”.
Insertion of new section 271GC.
80. After section 271GBof the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2025, namely:—
Penalty for failure to submit statement under section 285.
“271GC. If any person who is required to furnish statement under section 285, fails to do so within the period prescribed under that section, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of—
(a) one thousand rupees for every day for which the failure continues, if the period of failure does not exceed three months; or
(b) one lakh rupees in any other case.”.
Amendment of section 271H [Penalty for failure to furnish statements, etc.]
81. In section 271Hof the Income-tax Act, in sub-section (3), for the words “one year”, the words “one month” shall be substituted with effect from the 1st day of April, 2025.
Amendment of section 273B [Penalty not to be imposed in certain cases.]
82. In section 273Bof the Income-tax Act,—
(a) after the word, figures and letters “section 271FA,”, the word, figures and letters “section 271FAA,” shall be inserted with effect from the 1st day of October, 2024;
(b) after the word, figures and letters “section 271GB,”, the words, figures and letters “section 271GC,” shall be inserted with effect from the 1st day of April, 2025.
Amendment of section 275 [Bar of limitation for imposing penalties].
83. In section 275of the Income-tax Act, with effect from the 1st day of October, 2024,—
(a) in sub-section (1), in clause (a), the words “Principal Chief Commissioner or Chief Commissioner or” at both the places where they occur shall be omitted;
(b) in sub-section (1A), the words “Principal Chief Commissioner or Chief Commissioner or the” at both the places where they occur shall be omitted.
Amendment of section 276B [Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B.].
84. In section 276Bof the Income-tax Act, the following proviso shall be inserted with effect from the 1st day of October, 2024, namely:—
“Provided that the provisions of this section shall not apply if the payment referred to in clause (a) has been made to the credit of the Central Government at any time on or before the time prescribed for filing the statement for such payment under sub-section (3) of section 200.”.
Amendment of section 276CCC [Failure to furnish return of income in search cases].
85. In section 276CCCof the Income-tax Act, after the words, brackets and letter “clause (a) of”, the words, brackets and figure “sub-section (1) of” shall be inserted with effect from the 1st day of September, 2024.
Amendment of section 285 [Submission of statement by a non-resident having liaison office.].
86. In section 285 of the Income-tax Act, for the words “sixty days from the end of such financial year, a statement”, the words “such period, a statement” shall be substituted with effect from the 1st day of April, 2025.
