The Finance Act, 2024 (the Act) received the Indian President's assent on 15 February 2024 with no change in tax rates under income tax and goods and services tax (GST).
Other direct and indirect tax proposals enacted are set out below.
Income Tax
The Act extends the sunset clause for tax deduction under section 80-IAC of the Income Tax Act, 1961 for start-ups incorporated up to and including 31 March 2025 (currently, 31 March 2024).
Furthermore, the Act extends the deadline for claiming tax exemption/deduction up to and including 31 March 2025 (currently, 31 March 2024) for the purpose of:
- the commencement of operations of specific International Financial Services Centre (IFSC) units, including investment divisions of an offshore banking unit, as well as other units earning income from leasing or transfer of aircrafts and ships; and
- making of investments by specified persons such as sovereign wealth funds or foreign pension funds.
Goods and Services Tax
The Act amends the definition of "input service distributor" (ISD) and the manner of distribution of input tax credit by an ISD.
The full text of the Finance Act, 2024 is available here.
Source: IBFD Tax Resarch Platform News