The discussion surrounding introduction of inheritance tax in India has recently been in news. The Modi Government 3.O has denied introduction of inheritance tax. India is at the cusp of long-anticipa...
Modi Government 3.0 presented the first full Budget on July 23, 2024. As a first full budget of the new coalition government, reforms were expected on several policy, tax and regulatory front. Keeping in mind the pursuit of Viksit Bharat by 2047, the Hon’ble Finance Minister presented the Budget with strong emphasis on job creation, skilling for youth, fillip to MSMEs and ease of doing business.
On the tax front, while several expectations were met with abolition of angel tax, rationalisation of withholding tax rates, abolition of equalisation levy, the Hon’ble Finance Minister took the opportunity to surprise the investors with treating buy-back as dividend income and increase in long term and short-term capital gains tax rate for certain class of assets.
While no surprises were expected on the GST front, the substantive addition of Section 74A was definitely unexpected. Section 74A which is applicable from this Financial Year onwards will have a unified limitation of 42 months for issuance of SCN in all cases, irrespective of fraud, suppression and wilful misrepresentation. Other changes in customs were mostly in the nature of fresh exemptions to support domestic manufacturing and an increase in duties again to push the growth needle of domestic manufacturing.
Please click here for our summary of the key tax changes that have been proposed.
