BUDGET
Proposes measures to spread tax net wide and deep
This story was originally published at 22:07 IST on 23 July 2024
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MUMBAI – The full Budget for 2024-25 (Apr-Mar) has made some proposals for widening the tax base:
* Buy-back of shares: Income from share buy backs by companies to be chargeable in the hands of recipient investor as dividend instead of current regime of additional income tax in the hands of the company.
* Rental income: Income from letting out of a house, or part of the house, to not be charged as "profits and gains of business or profession" but as "income from house property."
* Transfer of capital asset: Only the transfer of a capital asset, under a gift, will, or an irrevocable trust by an entity other than an individual or a Hindu undivided family, to be regarded as transfer for the purpose of calculation of capital gain.
* Tax collected at source on luxury goods: Tax collected at source to be levied at 1% on notified goods of value exceeding 1 mln rupees.
* TDS on floating rate savings bonds: Tax deducted at source on interest exceeding 10,000 rupees on Floating Rate Savings (Taxable) Bonds 2020 and any other notified government security.
* Non-business expenditure by life insurers: Life insurance companies' expenditure which are not admissible under current provisions in computing profits and gains of a business to be included in the insurers' profits.
* Settlement amounts disallowed as expenditure: Expenses incurred as settlement fees for legal contraventions not to be allowed as business expenditure.
* Fair Market Value definition: To provide a method of calculation of fair market value on Jan 31, 2018 in the case of sale of unlisted equity shares in an offer for sale in an initial public offer.
End
Reported by Rajesh Gajra
Edited by Deepshikha Bhardwaj
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