Direct Tax Proposals – Budget 2024

Direct Tax Related Changes

A Partial Relief from “Ghost Tax Demands” under Income Tax         

The Hon’ble Finance Minister announced that there are a large number of petty , non verified, non reconciled and disputed direct tax demands dating back to 1962. In order to provide relief to the tax payers withdrawal of tax demands as mentioned below is announced

Direct Tax Related Changes

A Partial Relief from “Ghost Tax Demands” under Income Tax         

The Hon’ble Finance Minister announced that there are a large number of petty , non verified, non reconciled and disputed direct tax demands dating back to 1962. In order to provide relief to the tax payers withdrawal of tax demands as mentioned below is announced

This waiver is expected to benefit about a Crore tax payers.

Finance Bill 2024

The 80-IAC Benefit for Startups Extended to Entities Incorporated till 01^st April 2025  

The Recognized Startups being an LLP or a Private Limited Company have the option to claim 100% of the profits or Gains from Eligible Business as deductions for a period of any three consecutive years out of the 10 years beginning from the year in which the start up is incorporated under section 80-IAC of the Income tax Act,1961.

Previously this benefit was available only for the entities incorporated from 01^st April 2016 to 01^st April 2024. This budget has extended this benefit to the entities incorporated from 01^st April 2016 to 01^st April 2025.

Changes in TCS Provisions for Authorized Dealers to deal in Foreign Exchange  

206C(1G) of the Income Tax Act , 1961 mandates

• the authorized dealers who receive an amount under LRS scheme of RBI and
• Sellers of an overseas tour package to collect tax at the rate of 20%.

The old TCS provision and the amended TCS provisions are as follows  :

For Authorized Dealers