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These tax reforms will become Due to the tax reforms and the
the basis of an easy life changes made, the government will
get Rs 29,000 thousand crore less
n Vivaad se Vishwas Yojana 2024 for resolution of
revenue from direct taxes and Rs
pending income tax disputes.
8,000 thousand crore less revenue
n An assessment can be reopened beyond three
from indirect taxes. Although the
years from the end of the assessment year only
government will get Rs 30 thousand
if the escaped income is Rs 50 lakh or more, up
crore from other taxes imposed
to a maximum period of five years from the end
by it, the treasury will still get Rs 7
of the assessment year.
thousand crore less
n Even in search cases, a time limit of six years
before the year of search, as against the existing These tax reforms will become
the basis of Viksit Bharat
time limit of ten years will be observed
n Along with reducing the rate of 5 percent TDS
in many types of payments to 2 percent, the 20 Angel tax abolished: To strengthen the Indian startup
system, the tax on all categories of investors has
percent TDS deducted in the payment of repurchase
been abolished.
by mutual funds and UTI has been abolished.
n Short-term gains will be taxed at the rate of 20 Reduction in corporate tax: The corporate tax rate
on foreign companies has been reduced from
percent and long-term gains will be taxed at the
40% to 35%.
rate of 12.5 percent.
Simplified tax regime for foreign shipping
n Long-term gains of all financial and non-
companies: The tax regime will be simplified for
financial assets will be taxed at 12.5%. The
foreign shipping companies operating domestic
exemption limit for capital gains on certain
cruises in the country. This move will help in realizing
assets has been increased from Rs 1 lakh per the vast potential of cruise tourism in the country and
annum to Rs 1.25 lakh per annum. boost this employment-generating industry.
n Capital gains tax will be payable at the Safe Harbour Rate: To expand the scope of safe
applicable tax rate on unlisted bonds and harbour rules and make them more attractive for
debentures, debt mutual funds and market-linked foreign mining companies engaged in diamond
debentures, irrespective of the holding period. cutting and polishing that employ skilled artisans in
the country.
Salaried and pensioners Employer contribution to NPS increased: The
will save Rs employer contribution to NPS has been increased
17,500 in income tax due to the from 10% to 14% of the employees' salary.
amendments made in the
Reduction in expenditure of up to 14%: Similarly,
new tax regime.
the employees opting for the new tax regime in the
private sector, public sector banks, and undertakings
will be given a reduction in expenditure of up to 14% of
their salary.
The system will be paperless: All remaining services
T U V W of Customs and Income Tax will be digitized and
made paperless over the next two years, including
order-giving effect and rectification.
Q R S ñ Promoting the use of the Indian Rupee: Rules and
regulations related to foreign direct investment and
overseas investment will be simplified to promote
N O P J opportunities for the use of the Indian Rupee as
a currency for overseas investments abroad and
facilitate foreign direct investment.
M K Z H New India Samachar August 1-15, 2024 19
30-07-2024 17:20:57
NIS English AUG 1-15 2024 FINAL. Inf..indd 19 30-07-2024 17:20:57
NIS English AUG 1-15 2024 FINAL. Inf..indd 19
