India Budget 2024 : Bittersweet Symphony ?
The Indian Union Budget 2024 was announced on July 23, 2024 and it has brought significant changes to the Indian tax and economic landscape. Taking a long-term perspective, it introduces a wide range of measures, allocations, grants, and tax proposals to achieve various goals.
Key tax proposals include:
- Withdrawal of Angel Tax: Issuance of shares at a premium by a private company will no longer trigger tax consequences.
- Removal of Equalisation Levy: Eliminates the levy on e-commerce supply and service transactions.
- Rationalization of the Capital Gains Taxation Regime: Revises capital gains tax rates across asset classes and removes the indexation benefit.
- Tax Treatment of Share Buybacks: Amounts received through share buybacks will be taxed as dividend income, not capital gains.
- Reduction in Limitation Period: Shortens the limitation period for re-assessments and withholding tax audits.
- Market-linked Debentures: Aligns capital gains tax treatment of market-linked debentures with units of debt-oriented mutual funds.
- Expansion of Tax Incentives: Extends tax incentives to units in International Financial Services Centres.
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