BUDGET 2025-26 NOTES
:
a) accelerate growth,
b) secure inclusive development,
c) invigorate private sector investments,
d) uplift household sentiments, and
e) enhance spending power of India’s rising middle class.
Our economy is the fastest-growing among all major global economies.
‘Sabka Vikas’,.
focusing on Garib,
Youth,
Annadata and
Nari.
1) Spurring Agricultural Growth and Productivity;
2) Building Rural Prosperity and Resilience;
3) Taking Everyone Together on an Inclusive Growth path;
4) Boosting Manufacturing and Furthering Make in India;
5) Supporting MSMEs;
6) Enabling Employment-led Development;
7) Investing in people, economy and innovation;
8) Securing Energy Supplies;
9) Promoting Exports; and
10) Nurturing Innovation.
1) Taxation;
2) Power Sector;
3) Urban Development;
4) Mining;
5) Financial Sector; and
6) Regulatory Reforms.
Agriculture as the 1st Engine
9.
Prime Minister Dhan-Dhaanya Krishi Yojana -
Through the convergence of existing schemes and
specialized measures,
This programme is likely to help
1.7 crore farmers.
Building Rural Prosperity and Resilience
11.
A comprehensive
multi-sectoral ‘Rural Prosperity and Resilience’
programme will be launched in partnership with states.
migration is an option, but not a necessity.
Global and domestic best practices will be incorporated and
appropriate technical and financial assistance will be sought from multilateral
development banks.
In Phase-1, 100 developing agri-districts will be covered.
Aatmanirbharta in Pulses
Black gram (Urad) can be cultivated as both Kharif and rabi crop.
The Agricultural Infrastructure Fund (AIF) focuses on post-harvest management and infrastructure development in agriculture. It provides financial support for building storage facilities, cold chains, and processing units to reduce post-harvest losses and improve supply chain efficiency.
14.
Our Government is implementing
the National Mission for Edible
Oilseed
Tur, Urad and Masoor.
Aatmanirbharta in Pulses mission is a six-year program targeting
it is not implemented under PMFBY.
ఉరద్ దాల్ను తెలుగులో మినపప్పు
B. Central agencies ( Unlimited procurement of these 3 pulses by central agencies from farmers if registered )
(NAFED and
NCCF)
during the next 4 years from farmers who register with these agencies and
enter into agreements.
NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Cooperative Consumers Federation of India) are both apex bodies of cooperative organizations in India,
NAFED focusing on agricultural marketing
NCCF on consumer cooperatives,
.
Comprehensive Programme for Vegetables & Fruits
Makhana Board in Bihar
Makhana Board focuses on regulation and support but not direct income support.
How makhana is made:
- The seeds are harvested when ripe.
- They are sun dried.
- They are roasted at high heat to pop them.
- The popped seeds are known as makhana.
- They are seasoned with ground spices or added to a prepared sweet caramel syrup.
- They are roasted again before consumption.
Other facts about makhana:
- Makhana has been used in Chinese medicine since 3000 years and is also important in Ayurveda.
- In India, makhana is a popular 'upvas' (fasting) food during festivals like Navratri.
- 90% of the world's makhana is produced in Bihar, India.
- Makhana is a light and crunchy snack that softens when exposed to air.
a. The people engaged in
these activities will be organized into FPOs.
The Board will provide handholding
and training support to makhana farmers and will also work to ensure they
receive the benefits of all relevant Government schemes.
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National Mission on High Yielding Seeds
.
Fisheries
.
India ranks second-largest globally in fish production and aquaculture.
- 8% share in global fish production.
- Major fish producing states: Andhra Pradesh, West Bengal, Karnataka.
- Inland fisheries contribute more than 75% of total fisheries output.
- Globally, India ranks second in aquaculture production,
- leads in shrimp production and
- third in capture fisheries production.
Seafood exports are valued at ` 60 thousand crore.
To unlock the untapped
potential of the marine sector,
Indian Exclusive
Economic Zone
and High Seas,
on the Andaman & Nicobar
and Lakshadweep Islands.
Mission for Cotton Productivity
‘Mission for Cotton Productivity’.
,
and promote extra-long staple cotton varieties.
The best of science &
technology support will be provided to farmers.
Aligned with our integrated
5F
vision for the textile sector,
rejuvenating India’s traditional
textile sector.
Enhanced Credit through KCC .
Kisan Credit Cards (KCC)
facilitate short term loans for 7.7 crore farmers,
fishermen, and dairy farmers.
The loan limit under the Modified Interest
Subvention Scheme will be enhanced
from ` 3 lakh to 5 lakh for loans taken
through the KCC.
Urea Plant in Assam
The Indian Farmers Fertiliser Cooperative Limited (IFFCO) is the largest producer of urea in India. IFFCO is also the largest fertilizer company in India, manufacturing a variety of fertilizers, including urea, DAP, NPK, and complex fertilizers.
For Atmanirbharta in urea production, our Government had reopened
three dormant urea plants in the Eastern region.
To further augment urea
supply, a plant with annual capacity of 12.7 lakh metric tons will be set up at
Namrup, Assam.
India Post as a Catalyst for the Rural Economy
India Post with 1.5 lakh rural post offices,
complemented by the India
Post Payment Bank
and a vast network of 2.4 lakh Dak Sevaks,
India Post will also be transformed as a large public logistics
organization.
This will meet the rising needs of Viswakarmas, new
entrepreneurs, women, self-help groups, MSMEs, and large business
organizations.
Support to NCDC .
Our Government will provide support to NCDC for its lending operations
for the cooperative sector.
MSMEs as the 2nd engine.
5.7 crore.
28.
Currently, over 1 crore registered MSMEs,
employing 7.5 crore people,
and
generating 36 per cent of our manufacturing,
. With their quality products,
these
MSMEs are responsible for 45 per cent of our exports.
.
Significant enhancement of credit availability with guarantee cover
29.
To improve access to credit, the credit guarantee cover will be
enhanced
7 und of Funds for Startups F 31.
The Alternate Investment Funds (AIFs) for startups have received
commitments of more than ` 91,000 crore.
These are supported by the Fund
of Funds set up with a Government contribution of ` 10,000 crore.
Now, a new
Fund of Funds, with expanded scope and a fresh contribution of another
`
10,000 crore will be set up.
Scheme for First-time Entrepreneurs
32.
A new scheme will be launched for 5 lakh women, Scheduled Castes and
Scheduled Tribes first-time entrepreneurs
This will provide term loans up
to ` 2 crore during the next 5 years.
The scheme will incorporate lessons from
the successful Stand-Up India scheme.
Online capacity building for
entrepreneurship and managerial skills will also be organized.
Measures for Labour-Intensive Sectors
.
To promote employment and entrepreneurship opportunities in
labour-intensive sectors, our Government will undertake specific policy and
facilitation measures.
Focus Product Scheme for Footwear & Leather
Characteristics
- Wet blue leather is soft and pliable.
- It's tanned but not dried, dyed, or finished.
- It's resistant to decay.
- It can be stored for long periods of time if it doesn't dry.
Crust leather is the term applied to leather, which is dried after tanning but has not yet been dyed
The
scheme will support design capacity, component manufacturing, and
machinery required for production of non-leather quality footwear, alsooooooooooo
The scheme is expected to facilitate
employment for 22 lakh persons,
generate turnover of ` 4 lakh crore and
exports of over ` 1.1 lakh crore.
Measures for the Toy Sector
The Toy industry in India as the Sunrise Sector (Findings of the Report):
Toy Sector to make India a global hub for toys, it is not explicitly part of the Focus Product Schem
35.
Building on the National Action Plan for Toys,
'Made in India' brand.
Support for Food Processing In line with our commitment towards ‘Purvodaya’,
The institute will provide a strong fillip to food processing activities in
8
the entire Eastern region.
7.
Our Government will set up a National Manufacturing Mission covering
small, medium and large industries for furthering
“Make in India” by providing
policy support, execution roadmaps, governance and monitoring framework
for central ministries and states.
E.
Clean Tech Manufacturing
Given our commitment to climate-friendly development, the Mission
will also support Clean Tech manufacturing.
This will aim to improve domestic
value addition and build our ecosystem for solar PV cells, EV batteries, motors
and controllers, electrolyzers, wind turbines, very high voltage transmission
equipment and grid scale batteries.
Investment as the 3rd engine
.
A.
Investing in People
Saksham Anganwadi and Poshan 2.0
40.
The Saksham Anganwadi and Poshan 2.0 programme provides
nutritional support to more than 8 crore children,
1 crore pregnant women and
lactating mothers all over the country, and about
20 lakh adolescent girls in
aspirational districts and the north-east region.
The cost norms for the
nutritional support will be enhanced appropriately.
Atal Tinkering Labs
41.
Fifty thousand Atal Tinkering Labs will be set up in Government schools
in next 5 years to cultivate the spirit of curiosity and innovation, and foster a
scientific temper among young minds.
Broadband Connectivity to Government Secondary Schools and PHCs
42.
Broadband connectivity will be provided to all Government secondary
schools and primary health centres in rural areas under the Bharatnet project.
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Bharatiya Bhasha Pustak 📚📚 Scheme
43.
We propose to implement a Bharatiya Bhasha Pustak Scheme to
provide
digital-form Indian language books for school and higher education.
National Centres of Excellence for Skilling
Building on the initiative announced in the July 2024 Budget,
five
National Centres of Excellence for skilling will be set up with global expertise
and partnerships to equip our youth with the skills required for “Make for India,
Make for the World” manufacturing.
The partnerships will cover
curriculum
design,
training of trainers,
a skills certification framework,
and periodic
reviews.
Expansion of Capacity in IITs
45.
Total number of students in 23 IITs has increased 100 per cent
from
65,000 to 1.35 lakh in the past 10 years.
Additional infrastructure will be
created in the 5 IITs started after 2014 to facilitate education for 6,500 more
students.
Hostel and other infrastructure capacity at IIT, Patna will also be
expanded.
Centre of Excellence in AI for Education
I had announced three Centres of Excellence in
Artificial Intelligence for
agriculture, health, and sustainable cities in 2023.
Now a Centre of Excellence
in Artificial Intelligence for education will be set up with a total outlay of `
500
crore.
Expansion of medical education
Our Government has added almost 1.1 lakh UG and PG medical
education seats in ten years,
an increase of 130 per cent.
In the next year,
10,000 additional seats will be added in medical colleges and hospitals, towards
the goal of adding 75,000 seats in the next 5 years.
Day Care Cancer Centres in all District Hospitals
48.
Our Government will facilitate setting up of Day Care Cancer Centres
in all district hospitals in the next 3 years.
200 Centres will be established in
2025-26.
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Strengthening urban livelihoods
Our Government has been giving priority to assisting urban poor and
vulnerable groups.
A scheme for socio-economic upliftment of urban workers
will be implemented to help them improve their incomes, have sustainable
livelihoods and a better quality of life.
PM SVANidhi
50.
PM SVANidhi scheme has benefitted more than 68 lakh street vendors
giving them respite from high-interest informal sector loans. Building on this
success, the scheme will be revamped with enhanced loans from banks,
UPI
linked credit cards with ` 30,000 limit, and capacity building support.
Social Security Scheme for Welfare of Online Platform Workers
51.
Gig workers of online platforms provide great dynamism to the new
age services economy.
Recognising their contribution, our Government will
arrange for their identity cards and registration on the e-Shram portal.
They
will be provided healthcare under PM Jan Arogya Yojana.
This measure is likely
to assist nearly 1 crore gig-workers.
B.
Investing in the Economy
Public Private Partnership in Infrastructure
Each infrastructure-related ministry will come up with a 3-year pipeline
of projects that can be implemented in PPP mode.
States will also be
encouraged to do so and can seek support from the
IIPDF (India Infrastructure
Project Development Fund) scheme
to prepare PPP proposals.
Support to States for Infrastructure
53.
An outlay of ` 1.5 lakh crore is proposed for the 50-year interest free
loans to states for capital expenditure and incentives for reforms.
54.
Building on the success of the first Asset Monetization Plan announced
in 2021,
the second Plan for 2025-30 will be launched to plough back capital of
` 10 lakh crore in new projects. Regulatory and fiscal measures will be fine
tuned to support the Plan.
by leasing or selling underutilized public assets such as highways, railways, and power sector infrastructure.
Jal Jeevan Mission
Since 2019,
15 crore households representing
80 per cent of India’s
rural population have been provided access to potable tap water connections.
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To achieve 100 per cent coverage,
I am pleased to announce the extension of
the Mission until 2028 with an enhanced total outlay.
The Mission’s focus will be on the quality of infrastructure and O&M of
rural piped water supply schemes through “Jan Bhagidhari”. Separate MoUs
will be signed with states/UTs,
to ensure sustainability and citizen-centric water
service delivery.
Urban Sector Reforms
Building on the July Budget proposals, urban sector reforms related to
governance,
municipal services,
urban land, and planning will be incentivized.
Urban Challenge Fund
The Government will set up an Urban Challenge Fund of ` 1 lakh crore
to implement the proposals for ‘Cities as Growth Hubs’, ‘Creative
Redevelopment of Cities’ and ‘Water and Sanitation’ announced in the July
Budget.
59.
This fund will finance up to 25 per cent of the cost of bankable projects
with a stipulation that at least
50 per cent of the cost is funded from bonds,
bank loans, and PPPs.
An allocation of ` 10,000 crore is proposed for 2025-26.
Power Sector Reforms
60.
We will incentivize electricity distribution reforms and augmentation of
intra-state transmission capacity by states.
This will improve financial health
and capacity of electricity companies. Additional borrowing of 0.5 per cent of
GSDP will be allowed to states, contingent on these reforms.
Nuclear Energy Mission for Viksit Bharat
61.
Development of at least 100 GW of nuclear energy by 2047 is essential
for our energy transition efforts.
For an active partnership with the private
sector towards this goal,
amendments to the Atomic Energy Act and the Civil
Liability for Nuclear Damage Act will be taken up.
A Nuclear Energy Mission for research & development of Small Modular
Reactors (SMR) with an outlay of ` 20,000 crore will be set up.
At least 5
indigenously developed SMRs will be operationalized by 2033.
1Shipbuilding.
The Shipbuilding Financial Assistance Policy will be revamped to
address cost disadvantages.
This will also include Credit Notes for shipbreaking
in Indian yards to promote the circular economy.
64.
Large ships above a specified size will be included in the infrastructure
harmonized master list (HML).
65.
Shipbuilding Clusters will be facilitated to increase the range, categories
and capacity of ships.
This will include additional infrastructure facilities, skilling
and technology to develop the entire ecosystem.
Maritime Development Fund
66.
For long-term financing for the maritime industry, a Maritime
Development Fund with a corpus of ` 25,000 crore will be set up.
This will be
for distributed support and promoting competition.
This will have up to 49 per
cent contribution by the Government, and the balance will be mobilized from
ports and private sector.
UDAN - Regional Connectivity Scheme
67.
UDAN has enabled 1.5 crore middle-class people to meet their
aspirations for speedier travel.
The scheme has connected 88 airports and
operationalized 619 routes.
Inspired by that success, a modified UDAN scheme
will be launched to enhance regional connectivity to 120 new destinations and
carry 4 crore passengers in the next 10 years.
The scheme will also support
helipads and smaller airports in hilly, aspirational, and North East region
districts.
Greenfield Airport in Bihar
68.
Greenfield airports will be facilitated in Bihar to meet the future needs
of the State.
These will be in addition to the expansion of the capacity of Patna
airport and a brownfield airport at Bihta.
Western Koshi Canal Project in Mithilanchal
69.
Financial support will be provided for the
Western Koshi Canal ERM
Project
benefitting a large number of farmers cultivating over 50,000 hectares
of land in the Mithilanchal region of Bihar.
13
Mining Sector Reforms
70.
Mining sector reforms, including those for minor minerals, will be
encouraged through sharing of best practices and institution of a State Mining
Index.
71.
A policy for recovery of critical minerals from tailings will be brought out.
SWAMIH Fund 2
72.
Under the Special Window for Affordable and Mid-Income Housing
(SWAMIH) fifty thousand dwelling units in stressed housing projects have been
completed, and keys handed over to home-buyers.
Another forty thousand
units will be completed in 2025, further helping middle-class families who were
paying EMIs on loans taken for apartments, while also paying rent for their
current dwellings.
73.
Building on this success,
SWAMIH Fund 2 will be established as a
blended finance facility with contribution from the Government, banks and
private investors.
This fund of ` 15,000 crore will aim for expeditious
completion of another 1 lakh units.
PM Gati Shakti Data for Private Sector
74.
For furthering PPPs and assisting the private sector in project planning,
access to relevant data and maps from the PM Gati Shakti portal will be
provided.
Tourism for employment-led growth
75.
Top 50 tourist destination sites in the country will be developed in
partnership with states through a challenge mode. Land for building key
infrastructure will have to be provided by states.
Hotels in those destinations
will be included in the infrastructure HML.
76.
The following measures will be taken for facilitating employment-led
growth:
1) Organizing intensive skill-development programmes for our youth
including in Institutes of Hospitality Management;
2) Providing MUDRA loans for homestays;
3) Improving ease of travel and connectivity to tourist destinations;
14
4) Providing performance-linked incentives to states for effective
destination management including tourist amenities, cleanliness,
and marketing efforts; and
5) Introducing streamlined e-visa facilities along with visa-fee waivers
for certain tourist groups.
77
.
Continuing with the emphasis on places of spiritual and religious
significance in the July Budget, there will be a special focus on destinations
related to the life and times of Lord Buddha.
Medical Tourism and Heal in India
78.
Medical Tourism and Heal in India will be promoted in partnership with
the private sector along with capacity building and easier visa norms.
C.
Investing in Innovation
Research, Development and Innovation
79.
To implement private sector driven Research, Development and
Innovation initiative announced in the July Budget, I am now allocating
` 20,000 crore.
Deep Tech Fund of Funds
80.
A Deep Tech Fund of Funds will also be explored to catalyze the next
generation startups as a part of this initiative.
PM Research Fellowship
81.
In the next five years, under the PM Research Fellowship scheme, we
will provide ten thousand fellowships for technological research in IITs and IISc
with enhanced financial support.
Gene Bank for Crops Germplasm
82.
The 2nd Gene Bank with 10 lakh germplasm lines will be set up for future
food and nutritional security. This will provide conservation support to both
public and private sectors for genetic resources.
National Geospatial Mission
83.
We will start a National Geospatial Mission to develop foundational
geospatial infrastructure and data.
Using PM Gati Shakti, this Mission will
facilitate modernization of land records, urban planning, and design of
infrastructure projects.
15
Gyan Bharatam Mission
Gyan Bharatam Mission for survey, documentation and
conservation
of our manuscript heritage with academic institutions, museums, libraries and
private collectors will be undertaken to cover more than 1 crore manuscripts.
We will set up a National Digital Repository of Indian knowledge systems for
knowledge sharing.
.
Exports as the 4th engine
Export Promotion Mission
86.
We will set up an Export Promotion Mission, with sectoral and
ministerial targets, driven jointly by the Ministries of Commerce, MSME, and
Finance.
It will facilitate easy access to export credit,
cross-border factoring
support, and support to MSMEs to tackle non-tariff measures in overseas
markets.
.
BharatTradeNet
87.
A digital public infrastructure, ‘BharatTradeNet’ (BTN) for international
trade will be set-up as a unified platform for trade documentation and
financing solutions. This will complement the Unified Logistics Interface
Platform.
The BTN will be aligned with international practices.
Support for integration with Global Supply Chains
88.
Support will be provided to develop domestic manufacturing capacities
for our economy’s integration with global supply chains.
Sectors will be
identified based on objective criteria.
89.
Facilitation groups with participation of senior officers and industry
representatives will be formed for select products and supply chains.
90.
Through this, there are huge opportunities related to Industry 4.0,
which needs high skills and talent.
Our youth have both.
Our Government will
support the domestic electronic equipment industry to leverage this
opportunity for the benefit of the youth.
National Framework for GCC
91.
A national framework will be formulated as guidance to states for
promoting Global Capability Centres in emerging tier 2 cities.
This will suggest
16
measures for enhancing availability of talent and infrastructure, building
byelaw reforms, and mechanisms for collaboration with industry.
Warehousing facility for air cargo
92.
Our Government will facilitate upgradation of infrastructure and
warehousing for air cargo including high value perishable horticulture produce.
Cargo screening and customs protocols will be streamlined and made user
friendly.
Reforms as the Fuel
93.
Now I move to ‘Reforms as the Fuel’, and detail specific reforms.
🎂🎂🎂🎂🎂🎂🎂🎂🎉🎉🎉🎉🎉🎉🎉
Tax Reforms
94.
Over the past 10 years, our Government has implemented several
reforms for convenience of tax payers, such as
(1) faceless assessment,
(2) tax
payers charter, (
3) faster returns,
(4) almost 99 per cent returns being on self
assessment, and
(5) Vivad se Vishwas scheme.
Continuing these efforts,
I reaffirm the commitment of the tax department to “trust first, scrutinize later”.
I will detail the
indirect tax reforms and changes in direct taxes in Part B.
Financial Sector Reforms and Development
FDI in Insurance Sector
95.
The FDI limit for the insurance sector will be raised from 74 to 100 per
cent.
This enhanced limit will be available for those companies which invest the
entire premium in India.
The current guardrails and conditionalities associated
with foreign investment will be reviewed and simplified.
Expanding Services of India Post Payment Bank
96.
The services of India Post Payment Bank will be deepened and
expanded in rural areas.
Credit Enhancement Facility by
NaBFID
97.
NaBFID will set up a ‘Partial Credit Enhancement Facility’ for corporate
bonds for infrastructure.
Grameen Credit Score
98.
Public Sector Banks will develop ‘Grameen Credit Score’ framework to
serve the credit needs of SHG members and people in rural areas.
17
Pension Sector
99.
A forum for regulatory coordination and development of pension
products will be set up.
KYC Simplification
100. To implement the earlier announcement on simplifying the KYC
process, the revamped Central KYC Registry will be rolled out in 2025. We will
also implement a streamlined system for periodic updating.
Merger of Companies
101
. Requirements and procedures for speedy approval of company mergers
will be rationalized. The scope for fast-track mergers will also be widened and
the process made simpler.
Bilateral Investment Treaties
102. As proposed in the Interim Budget, we signed Bilateral Investment
Treaties (BIT) with two countries in 2024. To encourage sustained foreign
investment and in the spirit of ‘first develop India’, the current model BIT will
be revamped and made more investor-friendly.
Regulatory Reforms
103. In the last ten years in several aspects, including financial and non
financial, our Government has demonstrated a steadfast commitment to ‘Ease
of Doing Business’. We are determined to ensure that our regulations must
keep up with technological innovations and global policy developments.
A
light-touch regulatory framework based on principles and trust will unleash
productivity and employment. Through this framework,
we will update
regulations that were made under old laws.
To develop this modern, flexible,
people-friendly, and trust-based regulatory framework appropriate for the
twenty-first century, I propose four specific measures:
High Level Committee for Regulatory Reforms
104.
A High-Level Committee for Regulatory Reforms will be set up for a
review of all non-financial sector regulations, certifications, licenses, and
permissions.
The committee will be expected make recommendations within a
18
year.
The objective is to strengthen trust-based economic governance and take
transformational measures to enhance ‘ease of doing business’,
especially in
matters of inspections and compliances.
States will be encouraged to join in
this endeavour.
Investment Friendliness Index of States
105. An Investment Friendliness Index of States will be launched in 2025 to
further the spirit of competitive cooperative federalism.
FSDC Mechanism
106.
Under the Financial Stability and Development Council, a mechanism
will be set up to evaluate impact of the current financial regulations and
subsidiary instructions.
It will also formulate a framework to enhance their
responsiveness and development of the financial sector.
Jan Vishwas Bill
. In the Jan Vishwas Act 2023, more than 180 legal provisions were
decriminalized. Our Government will now bring up the Jan Vishwas Bill 2.0 to
decriminalize more than 100 provisions in various laws.
Fiscal Policy
108. Now I move to fiscal policy matters.
Fiscal Consolidation
109. In the July Budget, I had committed to staying the course for fiscal
consolidation.
Our endeavour will be to keep the fiscal deficit each year such
that the Central Government debt remains on a declining path as a percentage
of the GDP. The roadmap for the next 6 years has been detailed in the FRBM
statement.
Revised Estimates 2024-25
110.
The Revised Estimate of the total receipts other than borrowings is
` 31.47 lakh crore, of which the net tax receipts are ` 25.57 lakh crore.
The
Revised Estimate of the total expenditure is ` 47.16 lakh crore, of which the
capital expenditure is about ` 10.18 lakh crore.
111.
The Revised Estimate of the fiscal deficit is 4.8 per cent of GDP.
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Budget Estimates 2025-26
112.
Coming to 2025-26, the total receipts other than borrowings and the
total expenditure are estimated at ` 34.96 lakh crore and ` 50.65 lakh crore
respectively.
The net tax receipts are estimated at ` 28.37 lakh crore.
113. The fiscal deficit is estimated to be 4.4 per cent of GDP.
114.
To finance the fiscal deficit, the net market borrowings from dated
securities are estimated at ` 11.54 lakh crore. The balance financing is expected
to come from small savings and other sources. The gross market borrowings
are estimated at ` 14.82 lakh crore.
I will now move to Part B.
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PART B
Indirect Taxes
115. My proposals relating to Customs aim to rationalize tariff structure and
address duty inversion. These will also support domestic manufacturing and
value addition, promote exports, facilitate trade and provide relief to common
people.
Rationalisation of Customs Tariff Structure for Industrial Goods
116. As a part of comprehensive review of Customs rate structure
announced in July 2024 Budget, I propose to:
(i)
remove seven tariff rates. This is over and above the seven tariff
rates removed in 2023-24 budget. After this, there will be only eight
remaining tariff rates including ‘zero’ rate.
(ii)
(iii)
apply appropriate cess to broadly maintain effective duty incidence
except on a few items, where such incidence will reduce marginally.
levy not more than one cess or surcharge. Therefore, I propose to
exempt Social Welfare Surcharge on 82 tariff lines that are subject
to a cess.
117. I shall now take up sector specific proposals.
Relief on import of Drugs/Medicines
118.
To provide relief to patients, particularly those suffering from cancer,
rare diseases and other severe chronic diseases, I propose to add 36 lifesaving
drugs and medicines to the list of medicines fully exempted from Basic Customs
Duty (BCD). I also propose to add 6 lifesaving medicines to the list attracting
concessional customs duty of 5%. Full exemption and concessional duty will
also respectively apply on the bulk drugs for manufacture of the above.
119. Specified drugs and medicines under Patient Assistance Programmes
run by pharmaceutical companies are fully exempt from BCD, provided the
medicines are supplied free of cost to patients. I propose to add 37 more
medicines along with 13 new patient assistance programmes.
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Support to Domestic Manufacturing and Value addition
Critical Minerals
120. In the July 2024 Budget, I had fully exempted BCD on 25 critical minerals
that are not domestically available. I had also reduced BCD of 2 other such
minerals to provide a major fillip to their processing especially by MSMEs. Now,
I propose to fully exempt cobalt powder and waste, the scrap of lithium-ion
battery, Lead, Zinc and 12 more critical minerals. This will help secure their
availability for manufacturing in India and promote more jobs for our youth.
Textiles
121.
To promote domestic production of technical textile products such as
agro-textiles, medical textiles and geo textiles at competitive prices, I propose
to add two more types of shuttle-less looms to the list of fully exempted textile
machinery. I also propose to revise the BCD rate on knitted fabrics covered by
nine tariff lines from “10% or 20%” to “20% or ` 115 per kg, whichever is
higher”.
Electronic Goods
122. In line with our ‘Make in India’ policy, and to rectify inverted duty
structure, I propose to increase the BCD on Interactive Flat Panel Display (IFPD)
from 10% to 20% and reduce the BCD to 5% on Open Cell and other
components.
123. In 2023 -24 Budget, for the manufacture of Open Cells of LCD/LED TVs,
I had reduced the BCD on parts of Open Cells from 5% to 2.5% . To further boost
the manufacture of such Open Cells, the BCD on these parts will now stand
exempted.
Lithium Ion Battery
124. To the list of exempted capital goods, I propose to add 35 additional
capital goods for EV battery manufacturing, and 28 additional capital goods for
mobile phone battery manufacturing. This will boost domestic manufacture of
lithium-ion battery, both for mobile phones and electric vehicles.
Shipping Sector
125.
Considering that shipbuilding has a long gestation period, I propose to
continue the exemption of BCD on raw materials, components, consumables
or parts for the manufacture of ships for another ten years. I also propose the
same dispensation for ship breaking to make it more competitive.
22
Telecommunication
126. To prevent classification disputes, I propose to reduce the BCD from
20% to 10% on Carrier Grade ethernet switches to make it at par with Non
Carrier Grade ethernet switches.
Export Promotion
Handicraft Goods
127. To facilitate exports of handicrafts, I propose to extend the time period
for export from six months to one year, further extendable by another three
months, if required. I also propose to add nine items to the list of duty-free
inputs.
Leather sector
128.
I propose to fully exempt BCD on Wet Blue leather to facilitate imports
for domestic value addition and employment. I also propose to exempt crust
leather from 20% export duty to facilitate exports by small tanners.
Marine products
129.
To enhance India's competitiveness in the global seafood market, I
propose to reduce BCD from 30% to 5% on Frozen Fish Paste (Surimi) for
manufacture and export of its analogue products. I also propose to reduce BCD
from 15% to 5% on fish hydrolysate for manufacture of fish and shrimp feeds.
Domestic MROs for Railway Goods
130.
In July 2024 Budget, to promote development of domestic MROs for
aircraft and ships, I had extended the time limit for export of foreign origin
goods that were imported for repairs, from 6 months to one year and further
extendable by one year. I now propose to extend the same dispensation for
railway goods.
Trade facilitation
Time limit for Provisional Assessment
131.
Presently, the Customs Act, 1962 does not provide any time limit to
finalize Provisional Assessments leading to uncertainty and cost to trade. As a
measure of promoting ease of doing business, I propose to fix a time-limit of
two years, extendable by a year, for finalising the provisional assessment.
23
Voluntary Compliance
132.
I propose to introduce a new provision that will enable importers or
exporters, after clearance of goods, to voluntarily declare material facts and
pay duty with interest but without penalty. This will incentivise voluntary
compliance. However, this will not apply in cases where department has
already initiated audit or investigation proceedings.
Extended Time for End Use
133. For industry to better plan their imports, I propose to extend the time
limit for the end-use of imported inputs in the relevant rules, from six months
to one year. This will provide operational flexibility in view of cost and
uncertainty of supply. Further, such importers will now have to file only
quarterly statements instead of a monthly statement.
Direct Taxes
I now come to my Direct tax proposals.
134.
In Part A, I have briefly underlined Taxation Reforms as one of key
reforms to realize our vision of Viksit Bharat. In respect of criminal law, Our
Government had earlier ushered in Bharatiya Nyaya Sanhita replacing
Bharatiya Danda Sanhita. I am happy to inform this August House and the
country that the new income-tax bill will carry forward the same spirit of
“Nyaya”. The new bill will be clear and direct in text with close to half of the
present law, in terms of both chapters and words. It will be simple to
understand for taxpayers and tax administration, leading to tax certainty and
reduced litigation.
135. Reforms, however, are not a destination. They are a means to achieve
good governance for our people and economy. Providing good governance
primarily involves being responsive. The Thirukkural captures this in Verse 542,
which reads:
வான ாக்கி வாழும் உலககல்லாம் ம ் வ ்
னகால்ன ாக்கி வாழுங் குடி.
vaanokki vaalum ulakellaam mannavan
koalnokki vaalung kuti
Meaning:
Just as living beings live expecting rains,
Citizens live expecting good governance.
24
Our Government is committed to keeping an ear to the ground and a finger on
the pulse, and responding while balancing our nation-building efforts. The
following measures will detail just how our Government under the guidance of
PM Modi has taken steps to understand and address the needs voiced by our
citizens. My tax proposals are guided by this spirit.
136. The objectives of my proposals are as follows:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Personal Income Tax reforms with special focus on middle class
Rationalization of TDS/TCS for easing difficulties
Encouraging voluntary compliance
Reducing compliance burden
Ease of doing business
Employment and investment
I will come to my proposal on personal income tax towards the end.
TDS/TCS rationalization for easing difficulties
137. I propose to rationalize Tax Deduction at Source (TDS) by reducing the
number of rates and thresholds above which TDS is deducted. Further,
threshold amounts for tax deduction will be increased for better clarity and
uniformity. The limit for tax deduction on interest for senior citizens is being
doubled from the present ` 50,000 to ` 1 lakh. Similarly, the annual limit of `
2.40 lakh for TDS on rent is being increased to ` 6 lakh. This will reduce the
number of transactions liable to TDS, thus benefitting small tax payers
receiving small payments.
138. The threshold to collect tax at source (TCS) on remittances under RBI’s
Liberalized Remittance Scheme (LRS) is proposed to be increased from ` 7 lakh
to ` 10 lakh. I also propose to remove TCS on remittances for education
purposes, where such remittance is out of a loan taken from a specified
financial institution.
139. Both TDS and TCS are being applied on any transaction relating to sale
of goods. To prevent such compliance difficulties, I propose to omit the TCS. I
also propose that the provisions of the higher TDS deduction will now apply
only in non-PAN cases.
25
140.
In July 2024, the delay for payment of TDS up to the due date of filing
statement was decriminalized. I propose to provide the same relaxation to TCS
provisions as well.
Encouraging Voluntary Compliance
141. The Government under the leadership of Prime Minister Modi believes
in “Sabka Saath, Sabka Vikas, Sabka Vishwas and Sabka Prayas”. In line with
this, we brought in updated return facility in 2022 for voluntary compliance by
taxpayers who had omitted to report their correct income. Our trust in
taxpayers was proved right. Nearly 90 lakh taxpayers voluntarily updated their
incomes by paying additional tax. Taking this trust further, I now propose to
extend the time-limit to file updated returns for any assessment year, from the
current limit of two years, to four years.
Reducing Compliance Burden
142. I propose to reduce the compliance burden for small charitable
trusts/institutions by increasing their period of registration from 5 years to 10
years. It is also proposed that disproportionate consequences do not arise for
minor defaults, such as incomplete applications filed by charitable entities.
143. Presently tax-payers can claim the annual value of self-occupied
properties as nil only on the fulfilment of certain conditions. Considering the
difficulties faced by taxpayers, it is proposed to allow the benefit of two such
self-occupied properties without any condition.
Ease of Doing Business
144. To streamline the process of transfer pricing and to provide an
alternative to yearly examination, I propose to introduce a scheme for
determining arm's length price of international transaction for a block period
of three years. This will be in line with global best practices.
145. With a view to reduce litigation and provide certainty in international
taxation, the scope of safe harbour rules is being expanded.
146. A number of senior and very senior citizens have very old National
Savings Scheme accounts. As interest is no longer payable on such accounts, I
propose to exempt withdrawals made from NSS by individuals on or after the
29th of August, 2024. I am also proposing to allow similar treatment to NPS
Vatsalya accounts as is available to normal NPS accounts, subject to overall
limits.
26
147. In my speech in July 2024, I had promised that all processes including
giving effect to appellate orders shall be digitalized and made paper-less over
the next two years. I am happy to announce that digitalization is being made
operational.
148. In July 2024, we brought in the Vivad Se Vishwas Scheme to resolve
income tax disputes pending in appeal. The scheme has received a great
response, with nearly 33,000 tax payers having availed of this scheme to settle
their disputes.
Employment and Investment
149. I have a few proposals to promote investment and employment.
Tax certainty for electronics manufacturing Schemes
150. It is proposed to provide a presumptive taxation regime for non
residents who provide services to a resident company that is establishing or
operating an electronics manufacturing facility. I further propose to introduce
a safe harbour for tax certainty for non-residents who store components for
supply to specified electronics manufacturing units.
Tonnage Tax Scheme for Inland Vessels
151. Presently the tonnage tax scheme is available to only sea going ships.
The benefits of existing tonnage tax scheme are proposed to be extended to
inland vessels registered under the Indian Vessels Act, 2021 to promote inland
water transport in the country.
Extension for incorporation of Start-Ups
152. We continue to support the Indian start-up eco-system. I propose to
extend the period of incorporation by 5 years to allow the benefit available to
start-ups which are incorporated before 1.4.2030.
International Financial Services Centre (IFSC)
153. In order to attract and promote additional activities in the IFSC, I am
inter alia proposing specific benefits to ship-leasing units, insurance offices and
treasury centres of global companies which are set up in IFSC. Further, to claim
benefits, the cut-off date for commencement in IFSC has also been extended
by five years to 31.3.2030.
27
Alternate Investment Funds (AIFs)
154. Category I and category II AIFs are undertaking investments in
infrastructure and other such sectors. I propose to provide certainty of
taxation to these entities on the gains from securities.
Extension of investment date for Sovereign and Pension Funds
155. To promote funding from Sovereign Wealth Funds and Pension Funds
to the infrastructure sector, I propose to extend the date of making an
investment by five more years, to 31st March, 2030.
Personal Income- tax Reforms with special focus on middle class
156. Democracy, Demography and Demand are the key support pillars in our
journey towards Viksit Bharat. The middle class provides strength for India’s
growth. This Government under the leadership of Prime Minister Modi has
always believed in the admirable energy and ability of the middle class in
nation building. In recognition of their contribution, we have periodically
reduced their tax burden. Right after 2014, the ‘Nil tax’ slab was raised to
` 2.5 lakh, which was further raised to ` 5 lakh in 2019 and to ` 7 lakh in 2023.
This is reflective of our Government’s trust on the middle-class tax payers. I am
now happy to announce that there will be no income tax payable upto income
of ` 12 lakh (i.e. average income of ` 1 lakh per month other than special rate
income such as capital gains) under the new regime. This limit will be ` 12.75
lakh for salaried tax payers, due to standard deduction of ` 75,000.
157. Slabs and rates are being changed across the board to benefit all tax
payers. The new structure will substantially reduce the taxes of the middle
class and leave more money in their hands, boosting household consumption,
savings and investment.
158.
In the new tax regime, I propose to revise tax rate structure as follows:
. To tax payers upto ` 12 lakh of normal income (other than special rate
income such as capital gains) tax rebate is being provided in addition to the
benefit due to slab rate reduction in such a manner that there is no tax payable
by them.
The total tax benefit of slab rate changes and rebate at different
income levels can be illustrated with examples. A tax payer in the new regime
with an income of ` 12 lakh will get a benefit of ` 80,000 in tax (which is 100%
of tax payable as per existing rates). A person having income of ` 18 lakh will
get a benefit of ` 70,000 in tax (30% of tax payable as per existing rates).
A person with an income of ` 25 lakh gets a benefit of ` 1,10,000 (25% of his
tax payable as per existing rates).
160. Details of my tax proposals are given in the Annexure.
161.
As a result of these proposals, revenue of about ₹ 1 lakh crore in direct
taxes and ₹ 2600 crore in indirect taxes will be forgone.
Mr. Speaker Sir, with this, I commend the budget to this august House.
Jai Hind.
29
Annexures to Part A
Annexure A
Building Rural Prosperity and Resilience
The programme will focus at:
1) catalyzing enterprise development, employment and financial independence
for rural women;
2) accelerating creation of new employment and businesses for young farmers
and rural youth;
3) nurturing and modernizing agriculture for productivity improvement and
warehousing, especially for marginal and small farmers; and
4) diversifying opportunities for landless families.
Annexure B
Mission
for Aatmanirbharta in Pulses
The Mission will place emphasis on:
1) development and commercial availability of climate resilient seeds,
2) enhancing protein content,
3) increasing productivity,
4) improving post-harvest storage and management, and
5) assuring remunerative prices to the farmers.
30
Annexure C
India Post as a Catalyst for the Rural Economy
The expanded range of services will include:
1) rural community hub colocation;
2) institutional account services;
3) DBT, cash out and EMI pick-up;
4) credit services to micro enterprises;
are eligible for customized credit cards with a ₹5 lakh limit.
5) insurance; and
6) assisted digital services.
Annexure D
Annexure E
Manufacturing Mission
- Furthering “Make in India
The Mission’s mandate will include 5 focus areas:
1) ease and cost of doing business;
2) future ready workforce for in-demand jobs;
3) a vibrant and dynamic MSME sector;
4) availability of technology; and
5) quality products.
31
Annexure to Part B
Amendments relating to Indirect Taxes
A. LEGISLATIVE CHANGES IN CUSTOMS LAWS
A.1 Amendments in the Customs Act, 1962
(i) A new sub-section (1B) is being inserted in Section 18 to
provide time limit of two years for finalization of provisional
assessment. It also provides that this time limit may be
extended by the Commissioner of Customs for a further
period of one year if sufficient cause is shown. It further
provides that, for the pending cases, the time-limit shall be
computed from the date of assent of the Finance Bill, 2025.
(ii) A new sub-section (1C) is being inserted to provide for certain
grounds on which the time-limit of two years for finalizing
provisional assessment shall remain suspended.
(iii) A new section 18A is being inserted for voluntary revision of
entry after clearance of goods to allow importers and
exporters to revise any entry made in relation to the goods
within a prescribed time and subject to conditions as may be
prescribed. It also provides for treating such revised entry as
self-assessment and allow payment of duty or treat the
revised entry as a refund claim under section 27. It further
provides for certain cases where this section will not apply.
(iv) A new Explanation is being inserted in sub-section 1 of section
27 to clarify that the period of limitation for claim of refund
consequent to the revised entry under section 18A or
amendment under Section 149 of the Customs Act, 1962, shall
be one year from the date of payment of duty or interest.
(v) A new clause is being inserted in Explanation 1 to Section 28
to provide that the relevant date in the case of payment of
duty as per the revised entry under section 18A is the date of
payment of duty or interest.
(vi) A new clause is being inserted after clause (d) and (e) of
section 127A to define Interim Board, Member of the Interim
Board and pending applications.
(vii) A new sub-section (6) is being inserted after sub-section (5) in
section 127B to provide end date for receipt of applications
under this section.
32
(viii) A new sub-section (12) is being inserted after sub-section (11)
in section 127C to make applicable the sub-sections of Section
127C of the Customs Act, 1962 to the Interim Board.
(ix) A new sub-section (3) is being inserted after sub-section (2) in
section 127D clarifying that the powers of Settlement
Commission shall be exercised by the Interim Board and the
provisions of this section shall, mutatis mutandis, apply to the
Interim Board as they apply to the Settlement Commission.
(x) A new sub-section (5) is being inserted after sub-section (4) of
section 127F providing that the powers and functions of
Settlement Commission shall be exercised or performed by
the Interim Board.
(xi) A Proviso to section 127G of the Customs Act, 1962 is being
inserted to provide that the powers and functions of
Settlement Commission under this section shall be exercised
or performed by the Interim Board.
(xii) A new sub-section (4) is being inserted after sub-section (3) in
section 127H of the Customs Act, 1962 to provide that the
powers and functions of Settlement Commission under this
section shall be exercised or performed by the Interim Board.
These changes shall come into effect from date of assent to the
Finance Bill, 2025
A.2 Amendments in the Customs Tariff Act, 1975
a) The First Schedule to the Customs Tariff Act, 1975 is being
amended to, -
(i) revise tariff rates on certain industrial tariff items
(ii) add 178 new tariff entries in chapter 10, 20, 27, 28, 29, 38
and 71 and substitute/delete 63 tariff entries; insert
supplementary notes in chapter 10, 20, 29 and 38 and
amend 2 supplementary notes. This is to align the tariff
lines with WCO classification and better identification of
goods.
These changes shall come into effect from 1.5.2025.
33
B. LEGISLATIVE CHANGES IN GST LAWS
[Save as otherwise provided, these changes will be brought into effect from
a date to be notified in coordination with States, as per recommendations of
the GST council]
AMENDMENT FOR TRADE FACILITATION
B.1 Amendments in section 2 of the CGST Act, 2017:
a) Clause (61) is being amended to explicitly provide for distribution of
input tax credit by the Input Service Distributor in respect of inter
state supplies on which tax has to be paid on reverse charge basis, by
inserting reference to sub-section (3) and sub-section (4) of section 5
of Integrated Goods and Services Tax Act. This amendment will be
effective from 1st April, 2025.
b) Clause (69) (c) is being amended to insert an Explanation to provide
for definitions of the terms 'Local Fund' and 'Municipal Fund' used in
the definition of "local authority" under the said clause so as to clarify
the scope of the said terms.
c) A new clause (112A) is being inserted to provide definition of Unique
Identification Marking for implementation of Track and Trace
Mechanism
B.2 Amendments in Section 12 and 13 of the CGST Act, 2017
Sub-section (4) of Section 12 and Sub-section (4) of Section 13 relating
to time of supply in respect of vouchers are being omitted.
B.3 Amendments in Section 17 of the CGST Act, 2017
Clause (d) of sub-section (5) is being amended to substitute the words
"plant or machinery" with the words "plant and machinery" with effect
from 1st July, 2017.
B.4 Amendments in Section 20 of the CGST Act, 2017
Section 20(1) and Section 20(2) are being amended to explicitly provide
for distribution of input tax credit by the Input Service Distributor in
respect of inter-state supplies, on which tax has to be paid on reverse
charge basis, by inserting reference to sub-section (3) and sub-section
(4) of section 5 of Integrated Goods and Services Tax Act in sub-section
(1) of section 20. The amendment will be effective from 1st April, 2025.
34
B.5 Amendments in Section 34 of the CGST Act, 2017
The Proviso to sub-section (2) is being amended to explicitly provide
for requirement of reversal of corresponding input tax credit in respect
of a credit-note, if availed, by the registered recipient, for the purpose
of reduction of tax liability of the supplier in respect of the said credit
note.
B.6 Amendments in Section 38 of the CGST Act, 2017
a) Section 38(1) is being amended to omit the expression "auto
generated".
b) Section 38(2) is being amended to omit the expression "auto
generated" and to insert the expression "including" after the words
"by the recipient" in clause (b) to make the said clause more inclusive.
c) Section 38(2) is also being amended to insert a new clause (c) to
provide an enabling clause to prescribe other details to be made
available in statement of input tax credit.
B.7 Amendments in Section 39 of the CGST Act, 2017
Section 39(1) is being amended to provide an enabling clause to
prescribe certain conditions and restriction for filing of return.
B.8. Amendments in Section 107 and 112 of the CGST Act, 2017
a) Section 107(6) is being amended to provide for 10% mandatory pre
deposit of penalty amount for appeals before Appellate Authority in
cases involving only demand of penalty without any demand for tax.
b) Section 112(8) is amended to provide for 10% mandatory pre-deposit
of penalty amount for appeals before Appellate Tribunal in cases
involving only demand of penalty without any demand for tax.
B.9 Insertion of a new section 122B of the CGST Act, 2017
A new Section 122B is being inserted to provide penalties for
contraventions of provisions related to the Track and Trace
Mechanism provided under section 148A.
B.10 Insertion of a new section 148A of the CGST Act, 2017
Section 148A is being inserted to provide for enabling mechanism for a
Track and Trace Mechanism for specified commodities.
35
B.11 Amendments in Schedule III of the CGST Act,2017
Schedule III is being amended, w.e.f. 01.7.2017 to,₋
a) insert a new Entry (aa) in paragraph 8 to provide that the supply of
goods warehoused in a Special Economic Zone or in a Free Trade
Warehousing Zone to any person before clearance for exports or to
the Domestic Tariff Area shall be treated neither as supply of goods
nor as supply of services.
b) Amend Explanation 2, w.e.f. 01.07.2017 to clarify that the said
explanation would be applicable in respect of entry (a) of paragraph 8.
c) Insert Explanation 3 to define the terms 'Special Economic Zone',
'Free Trade Warehousing Zone' and 'Domestic Tariff Area', for the
purpose of the proposed entry (aa) in paragraph 8.
d) To provide that no refund of tax already paid will be available for the
transactions referred above.
C. OTHER PROVISIONS IN THE FINANCE BILL
C.1 Special Provision for Exemption from Service Tax in Certain Cases:
Services provided or agreed to be provided by insurance companies by
way of reinsurance services under the Weather Based Crop Insurance
Scheme (WBCIS) and the Modified National Agricultural Insurance
Scheme (MNAIS), are being exempted from service tax for the period
commencing from 1st April, 2011 and ending with 30th June, 2017.
D. CUSTOMS DUTY RATE CHANGES
D.1. Reduction in customs duty to reduce input costs, deepen value
addition, promote export competitiveness, correct inverted duty
structure, boost domestic manufacturing etc [with effect from
2.2.2025]
S.
No. Commodity From
(per cent)
To
(per cent)
I. Aquafarming & Marine exports
1. Frozen fish paste (surimi) for
manufacture of surimi analogue
products for export
30 5
36
S.
No. Commodity
From
(per cent)
To
(per cent)
2. Fish hydrolysate for manufacture of
aquatic feed 15 5
II. Chemicals
1. Other compounds containing a
pyrimidine ring (whether or not
hydrogenated) or piperazine ring in
the structure classified under tariff
sub heading 2933 59
10 7.5
2. Synthetic flavouring essences and
mixtures of odoriferous substances
of a kind used in food or drink
industries classified under tariff sub
heading 3302 10
100 20
3. Sorbitol classified under tariff
subheading 3824 60 30 20
III. Waste and Scrap of Critical Minerals and others
1. Waste and scrap of Antimony,
Beryllium, Bismuth, Cobalt,
Cadmium, Molybdenum, Rhenium,
Tantalum, Tin, Tungsten, Zirconium,
Copper scrap covered under tariff
items 74040012, 74040019 and
74040022
10/5/2.5 Nil
2. Waste and scrap of Lithium-Ion
Battery
5 Nil
3. Cobalt powder 5 Nil
4. Waste and scrap of Lead 5 Nil
5. Waste and scrap Zinc 5 Nil
IV. Drugs and Medicines
1. Addition of 6 more medicines in List
3 and bulk drugs for their
manufacture
As
applicable
5
37
S.
No. Commodity
From
(per cent)
To
(per cent)
2. Addition of 36 more medicines in List
4 and bulk drugs for their
manufacture
As
applicable
Nil
3. Addition of 37 more medicines and
13 Patient Assistance Programmes in
the list of duty free imports by
pharmaceutical companies for
supply free of cost to patients
As
applicable
Nil
V. Precious Metals
1. Platinum findings 25 6.4
(5 BCD + 1.4
AIDC)
VI. Textile, Handicraft and Leather Sector
1. Wet blue leather 10 Nil
2. Shuttle less loom Rapier Looms
(below 650 meters per minute) and
Shuttle less loom Air jet Looms
(below 1000 meters per minute) for
use in textile industry
7.5 Nil
3. Certain additional items for duty free
import by bonafide exporters for
manufacture of handicrafts
As
applicable
Nil
VII. Capital Goods
1. Addition of 35 capital
goods/machinery for use in the
manufacture of lithium-ion battery
of EVs and 28 capital
goods/machinery for use in the
manufacture of lithium-ion battery
of mobile phones
As
applicable
Nil
VIII. IT and Electronics
1. Inputs/ parts and sub-parts of PCBA,
camera module, connectors and
inputs or raw materials for use in
2.5 Nil
38
S.
No. Commodity
From
(per cent)
To
(per cent)
manufacture of wired headset,
microphone and receiver, USB cable,
fingerprint reader/ sensor of cellular
mobile phone
2. Specified inputs/parts (chip on film,
PCBA, glass board / substrate cell) for
use in manufacture of open cells of
TV panels of LED/LCD TV
2.5 Nil
3. Ethernet Switches Carrier-Grade 20 10
4. Open cell (with or without touch) for
interactive Flat Panel Display
module, Touch Glass sheet and
Touch Sensor PCB for use in
manufacture of Interactive Flat Panel
Display module
15/10 5
IX. Space Sector
1. Ground installation for satellites
including its spares and consumables
As
applicable
Nil
2. Goods used in the building of launch
vehicles and launching of satellites
5 Nil
X. Motorcycles
1. (i) Engine capacity not
exceeding 1600 CC (CBU)
(ii) Semi-knocked down (SKD)
(iii) Completely knocked down
(CKD)
50
25
15
40
20
10
2 (i) Engine capacity 1600 CC &
above (CBU)
(ii) Semi-knocked down (SKD)
(iii) Completely knocked down
(CKD)
50
25
15
30
20
10
39
D.2.
S.
No.
Increase in Customs duty [with effect from 02.02.2025]
Commodity
Rate of duties
From
(per cent)
I.
Textiles
To
(per cent)
1.
Knitted Fabrics covered under tariff
items 6004 10 00, 6004 90 00, 6006 22
00, 6006 31 00, 6006 32 00, 6006 33 00,
6006 34 00, 6006 42 00 and 6006 90 00
10/20
20 or Rs
115 per
kg,
whichever
is higher
II
Electronics
1
Interactive Flat Panel Display classified
under tariff item 8528 59 00 (CBU)
10
20
D.3.
Decrease in Tariff rate with no change in Effective rate [With effect
from 02.02.2025]
S.
No.
Commodity
Rate of duties
From
(per cent)
To
(per cent)
1.
Glycerol
crude,
glycerol
waters,
glycerol lye covered by tariff item 1520
00 00
30
20
2.
Phosphoric Acid
20
3.
7.5
Other – Prepared Binders, chemical
products and preparations of chemical
or allied industries covered under tariff
item 3824 99 00
17.5
7.5
4.
Marble and travertine, granite, crude
or roughly trimmed, merely cut into
blocks, slabs and other (tariff sub
heading 2515 12 and tariff items, 2525
11 00, 2516 11 00, 2516 12 00)
40
20
(+20 AIDC)
40
5.
Candles, tapers and the like covered by
tariff heading 3406
20
(+7.5 AIDC)
6.
Other reference materials
25
(+2.5 SWS)
30
10
7.
PVC flex films including PVC flex banner
and PVC flex sheets (tariff headings
3920, 3921)
20
(+7.5 AIDC)
8.
25
(+2.5 SWS)
Footwear
covered
headings 6401 to 6405
under
tariff
35
(+3.5 SWS)
20
(+18.5
AIDC)
9.
Worked monumental or building stone
and articles thereof under heading
6802 except 6802 99 00
40
10 Marble slabs classified under tariff
items 6802 10 00 , 6802 21 10 , 6802 21
20 , 6802 21 90 , 6802 91 00 and 6802
92 00
40
20
20
(+20 AIDC)
11.
12.
OTS/MR type-flat rolled products of
thickness less than 0.5 mm
Other plates, sheets, strips of thickness
less than 0.5mm
27.5
27.5
15
15
13.
Flat -rolled products in coils of
thickness greater than or equal to 4.75
mm but not exceeding 10mm
22.5
15
14.
Flat-rolled products in coils of thickness
greater than or equal to 3 mm but less
than 4.75 mm
22.5
15
15.
Flat-rolled products of stainless steel of
width 600mm or more- Other nickel
chrome austenitic type
22.5
15
16.
Flat-rolled products of stainless steel of
width 600mm or more- Other sheets
and plates
22.5
15
17.
Flat-rolled products of other alloy steel
grain oriented
20
15
41
18. Other tubes or pipe fittings of stainless
steel
25 15
19. Other fittings of iron or steel, non
galvanised
25 15
20. Other structure and parts of structures
of iron and steel
25 15
21. Others-tanks and drums etc. 25 15
22. Other screws and bolts w/n with nuts 25 15
23. Threaded nuts 25 15
24. Other non-threaded articles 25 15
25. Others springs and leaves of iron/steel 25 15
26. Other cast articles of iron or steel 25 15
27. Articles of forged or stamped but not
further worked
25 15
28. All other articles of iron/steel 25 15
29. Solar cells covered by tariff heading
8541
25
(+2.5 SWS)
20
(+7.5 AIDC)
30. Motor cars and other motor vehicles
principally designed for the transport
of persons, including station wagons
and racing cars, under tariff heading
8703 >USD 40000
125 (tariff
rate)
100 BCD +
10 SWS
(effective
rate)
70 (tariff
rate)
70+ 40
AIDC
(effective
rate)
31. Used Motor cars and other motor
vehicles principally designed for the
transport of persons, including station
wagons and racing cars, under tariff
heading 8703
125 (tariff)
125 BCD +
12.5 SWS
(effective
rate)
70 (tariff)
70+ 67.5
AIDC
(effective
rate)
32. Motorcycles (including mopeds) and
cycles fitted with an auxiliary motor,
100 (tariff) 70(tariff)
42
with or without side-cars under tariff
heading 8711
(No change
in effective
rate)
33.
Used Motorcycles (including mopeds)
and cycles fitted with an auxiliary
motor, with or without side-cars under
tariff heading 8711
(No change
in effective
rate)
100 (tariff)
70 (tariff)
100 BCD
+10 SWS
(effective
rate)
34.
Bicycles under tariff item 8712 00 10
35
70+ 40
AIDC
(effective
rate)
20
(+15 AIDC)
35.
Yachts and other vessels for pleasure
or sports; rowing boats and canoes
covered under tariff heading 8903
25
(+2.5 SWS)
20
(+7.5 AIDC)
36 Electricity meters for alternating
current (Smart Meters) under tariff
item 9028 30 10
25
(+2.5 SWS)
20
(+7.5 AIDC)
37 Parts of electronic toys, under tariff
item 9503 00 91 for manufacture of
electronic toys
25 BCD +
2.5 SWS
D.4.
20 BCD+
7.5 AIDC
Decrease in Tariff rate with reduction in effective rate [With effect
from 02.02.2025]
Rate of duties
Commodity
From
(per cent)
To
(per cent)
1.
Synthetic flavouring essences
and mixtures of odoriferous
substances for use in food and
drink industry
100
20
(+2 SWS)
2.
Sorbitol under tariff sub
heading 3824 60
20
(+2 SWS)
30
(+3 SWS)
43
Commodity
Rate of duties
From
(per cent)
To
(per cent)
3.
Articles of jewellery and parts
thereof under tariff heading
7113; articles of goldsmiths’ or
silversmiths’ wares and parts
25
20
4.
thereof under tariff heading
7114
Solar module under tariff
heading 8541
40
(+4 SWS)
20
(+20 AIDC)
5.
Motor vehicles (for passenger)
covered under tariff heading
8702
40
(+4 SWS)
20
(+20 AIDC)
6.
Motor vehicles (for goods)
covered under tariff heading
8704
40
(+4 SWS)
20
(+20 AIDC)
7.
Seats (other than those of
heading 9402), whether or not
convertible into beds, and
parts thereof, covered under
tariff heading 9401
25
(+2.5 SWS)
20
(+5 AIDC)
8.
Other furniture and parts
thereof covered under tariff
heading 9403
25
(+2.5 SWS)
20
(+5 AIDC)
9.
Mattress supports, articles of
bedding and similar furnishing
etc
20
(+5 AIDC)
10.
covered under tariff
heading 9405
Luminaries and light fittings
including searchlights and
spotlights and parts thereof
etc
25
(+2.5 SWS)
25
(+2.5 SWS)
20
(+5 AIDC)
11.
Parts of electronic toys, under
tariff item 9503 00 91
70
20
(+20 AIDC)
44
Commodity
Rate of duties
From
(per cent)
To
(per cent)
12.
Laboratory chemicals under
tariff item 9802 00 00 (other
than those attracting 10% BCD
on specified end use)
150
(+ 15 SWS)
70
(+ 70 AIDC)
13.
All dutiable articles, imported
by a passenger or a member of
a crew in his baggage, under
tariff heading 9803
100 (tariff rate)
70 (tariff rate)
35+ 3.5 SWS
(effective rate)
14.
Dutiable goods imported for
personal use classified under
heading 9804 other than those
at 10% BCD
35
(+ 3.5 SWS)
35
(effective rate)
20
E.
Export duty on Leather [with effect from 2.2.2025]
Rate of duties
S.
No.
Commodity
From
(per cent)
1
To
(per cent)
Crust Leather (hides and skins)
F. Trade Facilitation Measures
F.1. Increase in duration for export of handicrafts
20
0
The duration for export of handicrafts manufactured from duty free
inputs by bonafide exporters is being increased from 6 months to 1
year, further extendable by 3 months.
F.2. Removal of Customs (Import of Goods at Concessional rate of duty or
For Specific End Use) Rules 2022 (IGCR) condition for import of seeds for
use in manufacture of Lab Grown Diamonds
The IGCR condition for custom duty exemption on import of seeds for
use in manufacture of rough Lab Grown Diamond is being removed.
F.3. Extension of time limit for export
45
The time limit for export of foreign origin goods imported for repairs is
being extended from 6 months to one year further extendable by one
year for railway goods.
F.4. Amendment of Customs (Import of Goods at Concessional Rate of
Duty or For Specified End Use ) Rules, 2022
Rules 6 and 7 are being amended to increase the time limit for fulfilling
end use from current six months to one year and to file only a quarterly
statement instead of monthly statement.
Note: AIDC – Agriculture Infrastructure and Development Cess; SWS – Social
Welfare Surcharge
G.
OTHERS
There are few other changes of minor nature. For details of the budget
proposals, the Explanatory Memorandum and other relevant budget
documents may be referred to.
46
Annexure to Part B
Amendments relating to Direct Taxes
(i) Personal Income-tax reforms with special focus on middle class
1. Substantial relief is proposed under the new tax regime with new slabs
and tax rates as under: -
Total income Rate of tax
Upto ` 4,00,000 Nil
From ` 4,00,001 to ` 8,00,000 5 per cent
From ` 8,00,001 to ` 12,00,000 10 per cent
From ` 12,00,001 to ` 16,00,000 15 per cent
From ` 16,00,001 to ` 20,00,000 20 per cent
From ` 20,00,001 to ` 24,00,000 25 per cent
Above ` 24,00,000 30 per cent
2. Rebate on income-tax
• Resident individual with total income up to ` 7,00,000 do not pay any
tax due to rebate under the new tax regime. It is proposed to
increase the rebate for the resident individual under the new regime
so that they do not pay tax if their total income is up to ` 12,00,000.
Marginal relief as provided earlier under the new tax regime is also
applicable for income marginally higher than ` 12,00,000.
• A few examples for calculation of tax benefit are given in the table
below:
47
Income Tax on
Slabs and rates
Benefit
of Rebate benefit Total
Benefit
Tax after
rebate
Benefit
Present Proposed Rate
/Slab
Full upto Rs 12
lacs
8 lac 30,000 20,000 10,000 20,000 30,000 0
9 lac 40,000 30,000 10,000 30,000 40,000 0
10 lac 50,000 40,000 10,000 40,000 50,000 0
11 lac 65,000 50,000 15,000 50,000 65,000 0
12 lac 80,000 60,000 20,000 60,000 80,000 0
16 lac 1,70,000 1,20,000 50,000 0 50,000 1,20,000
20 lac 2,90,000 2,00,000 90,000 0 90,000 2,00,000
24 lac 4,10,000 3,00,000 1,10,000 0 1,10,000 3,00,000
50 lac 11,90,000 10,80,000 1,10,000 0 1,10,000 10,80,000
(ii) Rationalization of TDS/TCS for easing difficulties
1. Rationalization tax deducted at source (TDS) and tax collected at source
(TCS) rates:
• To reduce multiplicity of rates and compliance burden, it is proposed
to bring down certain TDS and TCS rates in certain sections as below:
S. No Section of the Act Present TDS/TCS
Rate
Proposed TDS/TCS Rate
1. Section 194LBC - Income in
respect of investment in
securitization trust
25% if payee is
Individual or HUF and
30% otherwise
10%
2. Sub-section (1) of section 206C
(i) TCS on timber or any other
forest produce (not being
tendu leaves) obtained under
a forest lease and
(ii) TCS on timber obtained by
any mode other than under a
forest lease
2.5% 2%
3. Sub-section (1G) of section
206C – TCS on remittance
under LRS for purpose of
education, financed by loan
from financial institution
0.5% after ` 7 lakhs Nil
48
• It is further proposed to increase certain thresholds for requirement
to deduct tax at source or collect tax at source under certain sections,
as below:
S.No Section of the Act Present TDS /TCS
Threshold (Rs)
Proposed TDS /TCS
Threshold (Rs)
1. 193 - Interest on
securities
Nil 10,000/-
2.
194A - Interest
other than
Interest on
securities
(i) 50,000/- for senior
citizen;
(ii) 40,000/- in case of
others
when payer is bank,
cooperative society and
post office
(iii) 5,000/- in other
cases
(i) 1,00,000/- for senior
citizen
(ii) 50,000/- in case of
others
when payer is bank, co
operative society and post
office
(iii) 10,000/- in other cases
3. 194 – Dividend,
for an individual
shareholder
5,000/- 10,000/-
4. 194K - Income in
respect of units of
a mutual fund or
specified company
or undertaking
5,000/- 10,000/-
5. 194B - Winnings
from lottery,
crossword puzzle
etc.
Aggregate of amounts
exceeding 10,000/-
during the financial year
10,000/- in respect of a
single transaction
6. 194BB - Winnings
from horse race
7. 194D - Insurance
commission
15,000/- 20,000/-
8. 194G - Income by
way of
commission, prize
etc. on lottery
tickets
15,000/- 20,000/-
9. 194H -
Commission or
brokerage
15,000/- 20,000/-
10.
194-I Rent
2,40,000/- during the
financial year
50,000/- per month or part
of a month
49
11. 194J - Fee for
professional or
technical services
30,000/- 50,000/-
12. 194LA - Income by
way of enhanced
compensation
2,50,000/- 5,00,000/-
13. 206C(1G) –
Remittance under
LRS and overseas
tour program
package
7,00,000/- 10,00,000/-
(iii) Encouraging voluntary compliance
1. Extending the time-limit to file the updated return:
• It is proposed to extend the time-limit to file the updated return from
the existing 24 months to 48 months from the end of the relevant
assessment year. The additional tax payable shall be 60% of the
aggregate of tax and interest payable on additional income for filing
updated return during the period of 24 months to 36 months from
the end of relevant assessment year. Additional tax payable shall be
70% of the aggregate of tax and interest payable for filing updated
return during the period of 36 months to 48 months from the end of
relevant assessment year subject to certain conditions.
2. Obligation to furnish information in respect of crypto-asset:
• It is proposed to bring amendment in the Act to provide for that a
prescribed reporting entity in respect of a crypto-asset shall furnish
information in respect of a transaction in such crypto asset, in a
statement as prescribed. It is also proposed to align the definition of
virtual digital asset accordingly.
3. Annual value of the self-occupied property simplified:
• It is proposed to provide that the annual value of the property
consisting of a house or any part thereof shall be taken as nil, if the
owner occupies it for his own residence or cannot actually occupy it
due to any reason.
(iv) Reducing compliance burden
50
1. Reduction in compliance burden by omission of TCS on sale of specified
goods:
• To reduce compliance burden of the taxpayers, it is proposed to no
tax will be collected at source on sale of specified goods of value of
more than fifty lakhs.
2. Removal of higher TDS/TCS for non-filers of return of income:
• It is also proposed that TCS be collected only on “any other forest
produce which is obtained under a forest lease.”
(v) Ease of doing business
1. Extension of time limit u/s 80-IAC for startups:
• To reduce compliance burden on the deductor/collector, it is
proposed to omit section 206AB and section 206CCA of the Act.
3. Definition of “forest produce” rationalized:
• It is proposed to clarify the meaning of “forest produce” u/s 206C(1)
of the Act to remove any ambiguity regarding definition of the same.
• It is proposed to extend the benefit provided under Section 80-IAC
to startups for another period of five years, i.e. the benefit will be
available to eligible start-ups incorporated before 01.04.2030.
2. Parity in rates of long term capital gain on transfer of securities by non
resident:
• It is proposed to bring parity between the taxation of capital gains on
transfer of capital assets between residents and non-residents being
Foreign Institutional investors, on their income by way of long-term
capital gains on transfer of securities.
3. Simplification of tax provisions for charitable trusts/institutions:
• It is proposed to increase the period of validity of registration of trust
or institution from 5 years to 10 years for smaller trusts or
institutions.
51
• It is proposed to rationalize the definition of specified violation for
cancellation of registration of trust or institution so as to not apply
the same for minor default such as in-complete applications.
• It is also proposed to rationalize the definition of persons making
substantial contribution to a trust or institution for denial of
exemption.
4. Rationalization in taxation of business trusts:
• It is proposed to provide that the total income of a business trust
which is charged to tax at the maximum marginal rate, shall be
subject to the provisions of section 112A of the Act as well, as it is
subject to provisions of section 111A and section 112 of the Act.
5. Harmonization of Significant Economic Presence applicability with
business connection:
• It is proposed to provide that significant economic presence of a non
resident in India shall not include the transactions or activities which
are confined to the purchase of goods in India for the purpose of
export.
6. Bringing clarity in income on redemption of Unit Linked Insurance Policy:
• It is proposed to clarify that the profit and gains from the redemption
of unit linked insurance policies to which exemption under section
10(10D) does not apply, shall be charged to tax as capital gains.
7. Amendment of definition of ‘capital asset’:
• In order to bring clarity on the chargeability of income arising out of
transfer of capital asset being securities held by an investment fund
as referred to in section 115UB of the Act, the definition of capital
asset is proposed to be amended.
8. Rationalization of transfer pricing provisions for carrying out multi-year
arm’s length price determination
• It is proposed to provide that the transfer pricing provisions for arm’s
length price determination in relation to similar transactions shall
now be applicable for a period of 3 years.
52
9. Exemption from prosecution for delayed payment of TCS:
• It is proposed to provide for exemption from prosecution to a person
who has failed to pay tax collected at source (TCS) to the credit of
the Central Government, if such payment is made at any time on or
before the time prescribed for filing the quarterly TCS statement.
10. Amendment of definition of ‘capital asset’:
• In order to bring clarity on the chargeability of income arising out of
transfer of capital asset being securities held by an investment fund
as referred to in section 115UB of the Act, the definition of capital
asset is proposed to be amended.
(vi) Employment and Investment
1. Incentives to IFSC
• It is proposed that the sunset dates related to IFSC units for
exemptions, deductions and relocation in various sections shall be
extended to 31st March, 2030.
• It is proposed to exempt the proceeds received on life insurance
policy issued by IFSC insurance intermediary office without the
condition on maximum premium amount.
• It is proposed to extend the exemption in section 10(4H) to capital
gains for non-resident or a unit of IFSC on transfer of equity shares
of a ship leasing domestic company.
• It is proposed to extend the exemption in section 10(34B) to dividend
paid by a ship leasing company in IFSC to a unit of IFSC engaged in
ship leasing.
• It is proposed that any advance or loan between two group entities,
where one of the group entities is set up in IFSC for undertaking
treasury activities or treasury services, shall be excluded from
dividend.
• It is proposed to provide a simplified safe harbor regime for
investment funds managed by fund manager based in IFSC. It is
further proposed to extend the relaxation of conditions for IFSC units
till 31st March, 2030.
• It is proposed to provide exemption to any income accruing or arising
to or received by a non-resident as a result of transfer of non
53
deliverable forward contracts entered into with any Foreign Portfolio
Investor, being a unit in an International Financial Services Centre,
which fulfills prescribed conditions.
• It is proposed that transfer of a share or unit or interest held by a
shareholder in an original fund (being a retail scheme or exchange
traded fund regulated under IFSCA Regulations 2022) in
consideration for the share or unit or interest in a resultant fund in a
relocation, shall not be regarded as transfer for the purpose of
calculating capital gains.
2. Extension of date of making investment by Sovereign Wealth Funds,
Pension Funds and others:
• It is proposed that in the case of person specified under section
10(23FE) the date of making investment shall be extended from 31st
day of March, 2025 to 31st day of March, 2030.
• It is further proposed that in the case of such specified person
exemption shall be available to long-term capital gains under said
section, even if such capital gains are deemed as short-term capital
gains under section 50AA.
3. Scheme of presumptive taxation extended for non-resident providing
services for electronics manufacturing facility:
• It is proposed to provide a presumptive taxation regime for non
residents, engaged in the business of establishing or operating
electronics manufacturing facility or a connected facility for
manufacturing or production of electronic goods, article or thing in
India.
4. Extension of Tonnage Tax Scheme to Inland vessels:
• It is proposed that the benefits of existing tonnage tax scheme to be
extended to inland vessels registered under the Indian Vessels Act,
2021 to promote Inland Water Transportation in the country.
5. Deduction u/s 80CCD for contributions made to the NPS Vatsalya:
• It is proposed to extend the tax benefits available to the National
Pension Scheme (NPS) under sub-section (1B) of section 80CCD of
the Income-tax Act, 1961 to the contributions made to the NPS
Vatsalya accounts, as applicable.
54
(vii) Other miscellaneous amendments
1. Exemption from withdrawals from National Savings Scheme (NSS):
• It is proposed to provide exemption to the withdrawals made from
National Savings Scheme (NSS) on or after the 29th day of August,
2024, for any amount deposited under the scheme and the interest
accrued thereon in respect of which a deduction has been allowed.
2. Increase in the limits on the income of the employees for the purpose of
calculating perquisites:
• The provisions of Section 17 are proposed to be amended so that the
power to prescribe rules may be obtained to increase these limits.
3. Extension of exemption to Specified Undertaking of Unit Trust of India
(SUUTI)
• It is proposed to extend the exemption of SUUTI created by the Unit
Trust of India (Transfer of Undertaking and Repeal) Act, 2002, to 31st
March, 2027.
4. Non applicability of Section 271AAB of the Act:
• It is proposed that provisions of the aforesaid section shall not be
applicable to a case where search has been initiated under section
132 on or after the 1st day of September, 2024.
5. Certain penalties to be imposed by the Assessing Officer:
• It is proposed to amend various sections related to penalty to
provide that penalties under these sections shall be levied by the
Assessing Officer, subject to the provisions of the Act relating to prior
approval of Joint Commissioner of Income-tax.
6. Removing date restrictions on framing the schemes in certain cases:
• It is proposed that the end date prescribed for notifying faceless
schemes under certain sections may be omitted so as to provide that
55
Central Government may issue directions beyond the cut-off date of
31st day of March, 2025.
7. Extending the processing period of Application seeking immunity from
penalty and prosecution:
• It is proposed that Assessing Officer shall pass an order accepting or
rejecting the application requesting immunity from penalty and
prosecution, within a period of three months from the end of the
month in which such application is received.
8. Increasing time limit available to pass order under section 115VP:
• It is proposed to amend section 115VP to provide that the order,
accepting or rejecting, assessee’s option to opt for tonnage tax
scheme shall be passed before the expiry of three months from the
end of the quarter in which such application was received.
9. Excluding the period such as court stay etc. for calculating time limit to
pass an order:
• It is proposed to exclude certain time period such as period of stay
on proceedings by any court order, etc. from the time limit to pass
an order deeming a person to be an assessee in default with respect
of failure to collect TCS.
10. Time limit to impose penalties rationalized:
• It is proposed that any order imposing a penalty shall not be passed
after the expiry of six months from the end of the quarter in which
the connected proceedings are completed, or the order of appeal is
received.
56
11. Clarification regarding commencement date and the end date of the
period stayed by the Court:
• It is proposed to amend the relevant sections of the Act to clarify the
commencement date and the end date of the period stayed by an
order or injunction of any court.
12. Time limit for retention of seized books of account or other documents
rationalized:
• It is proposed make amendments to provide that retention of seized
books of account or other documents shall be one month from the
end of the quarter in which the assessment or reassessment or
recomputation order has been made.
13. Rationalisation of provisions related to carry forward of losses in case
of amalgamation
• It is proposed to amend section 72A and section 72AA of the Act to
provide that any loss forming part of the accumulated loss of the
predecessor entity, shall be carried forward for not more than eight
assessment years immediately succeeding the assessment year for
which such loss was first computed for original predecessor entity.
14. Amendments proposed in provisions of Block assessment for search
and requisition cases under Chapter XIV-B
• It is proposed to add the term “virtual digital asset” to the said
definition of undisclosed income of the block period. The time-limit
for completion of block assessment is proposed to be made as
twelve months from end of the quarter in which the last of the
authorisations for search or requisition has been executed.
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