TAX RATE
- No tax liability for taxpayers with income up to 7 lakh under the new tax regime.
- No other changes in slab rates.
WITHDRAWAL OF OUTSTANDING TAX DEMAND
- Up to 25,000 pertaining till FY 2010
- Up to 10,000 for FY 2011 to FY 2015
EXTENSION
- Section 10 clause (4D) - Deduction in respect of certain incomes of OBUs and IFSCs – extended to the businesses which have commenced its operations on or before 31 March 2025.
- Section 80 IAC - Startups eligible for 100% deduction – businesses incorporated on or after 1 April 2016 but before 01 April 2025.
- Section 80LA - Income arising from the transfer of an asset, being an aircraft which was leased by a unit of an IFSC, eligible for 100% deduction -extended to businesses commenced on or before 31 March 2025.
OTHER AMENDMENTS
- Section 206C - amended to Authorised dealer or Seller shall, at the time of debiting the amount payable by the buyer collect from the buyer, a sum equal to 5% of such amount as income-tax.
- The non- inclusion of words “for the purposes of education or medical treatment” has been substantiated in the 1st proviso of section 206C.
- In the 2nd proviso of section 206C, the 20% of the amount or aggregate of the amounts has been updated by altering the ceiling of 5%.
ASSESSMENT
- Section 92CA – Reference to Transfer Pricing Officer - Amended to provide that no direction shall be issued where the transaction is done after 31 March 2025.
- Section 144C – Reference to Dispute Resolution Panel - Amended to provide that no direction shall be issued where the transaction is done after 31 March 2025.
- Section 253 - Assessee aggrieved by orders may appeal to the Appellate Tribunal against such order. The applicability of the section 253 (9) has been extended up to the year 2025.
- Section 255 - The powers and functions of the Appellate Tribunal, by notification in the Official Gazette, directs that applicability with respect to section 255 (8) has been lengthened to the year 2025.
INDIRECT TAX HIGHLIGHTS
ADDITIONS AND AMENDMENTS IN CGST ACT
- Definition of Input Service Distributor (ISD) has been substituted in clause 61 of section 2
Section 20: Who is liable to get registered as ISD?- Office of the supplier of goods or services or both which receives input services or services liable to RCM shall be liable to get registered as ISD and distribute in the manner prescribed.
New section 122A added - Penalty of ₹ 1 lakh per machine for failure to register machines in accordance with section 148. - Machinery shall be liable for seizure and confiscation unless the penalty imposed has been paid or registration has made within 3 days of receipt of penalty order.
FISCAL CONSOLIDATION
BOOSTING INFRASTRUCTURE
- ₹11.11 Lakh Crore Capex: Significant investment in infrastructure projects (3.4% of GDP) to drive growth.
- Examples: Upgrading railways, building new roads, developing smart cities.
MANAGING DEFICIT
- Revised FY24 Target: 5.8% target shows progress towards fiscal prudence.
- Ambitious FY25 Target: 5.1% target set for further deficit reduction.
REDUCED BORROWING
- ₹14.13 Lakh Crore Gross Borrowing: Planned reduction in borrowing reflects conscious effort to manage debt burden.
SECTORAL INITIATIVES
RAILWAYS
- Decongestion of High-Density Corridors: Improved efficiency and faster travel times.
- Dedicated Corridors for Key Industries: Enhanced connectivity for energy, minerals, and cement sectors.
- Vande Bharat Train Expansion: 40,000 bogies upgraded to high-speed standards.
HEALTHCARE
- Ayushman Bharat Expansion: Healthcare facilities extended to Aasha & Anganwadi workers.
- New District Hospitals: Improved access to healthcare in rural areas.
- Vaccination Drive: HPV vaccination for girls aged 9 to 14 to fight cervical cancer.
AGRICULTURE
- Private, Public Investment in Post-Harvest Activities: Improved storage, processing, and transportation.
- Empowering Dairy Farmers: Initiatives to increase milk production and income.
- Foot and Mouth Disease Control: More resources allocated for disease prevention.
- Crop Insurance Expansion: 4 crore farmers covered under PM Fasal Bima Yojana.
- Five Integrated Aqua Parks: Development of sustainable aquaculture.
HOUSING
- New Scheme for Middle Class: Affordable housing options for middle-income families.
- PM Aavas Yojana: Aiming to build 2 crore houses under this flagship scheme.
TOURISM PROMOTION
- Interest-Free Loans to States: Boosting tourism infrastructure and attracting visitors.
- Lakshwadweep Development: Increased funding for tourism development in this island territory.
- Population Challenges: Panel formed to address issues of population growth and urbanization.
Aviation
- Continued Expansion: Government remains committed to expanding the aviation sector.
- Indian Carriers Orders: Indian carriers have placed orders for over 1,000 new aircraft.
- Airport Development: Expansion of existing airports and development of new airports will continue.
- Regional Connectivity: UDAN scheme continues to promote regional air connectivity.
OVERALL VISION
GROWTH MOMENTUM
- "Unprecedented Growth" Forecast: Next five years seen as a period of significant economic expansion.
- Next-Generation Reforms: Planned in collaboration with state governments.
EASTERN PUSH
- Eastern Region Development: Making the east a key driver of national growth.
- Specific Initiatives: Infrastructure projects, industrial, development, and skill development programs.
SUSTAINABLE DEVELOPMENT
- Free Solar Power for Homes: Over 1 crore houses to receive 300 units of free solar power.
- Climate Change Focus: Investments in renewable energy and clean technologies.
WOMEN'S EMPOWERMENT
- Higher Education: Female participation increased to 28%.
- Entrepreneurship & Skilling: Programs to encourage women-led businesses.
FINANCIAL INCLUSION.
- Mudra Loans: Over ₹22 lakh crore disbursed to small businesses in the last decade.
- Increased Access to Credit: Expanding financial services to unbanked populations.
GLOBAL POSITIONING
- Strategic Partnerships: Building stronger ties with key international partners.
- Trade & Investment Promotion: Initiatives to attract foreign investment and boost exports.
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