Full Text
REGISTERED NO. DL-(N)04/0007/2003-24
The Gazette of India
CG-DL-E-02022024-251711
EXTRAORDINARY
PART II - Section 2
PUBLISHED BY AUTHORITY
No. 1] NEW DELHI, THURSDAY, FEBRUARY 01, 2024/MAGHA 12, 1945 (SAKA)
Separate paging is given to this Part in order that it may be filed as a separate compilation.
LOK SABHA
The following Bill was introduced in Lok Sabha on 1st February, 2024:-
BILL NO. 14 OF 2024
A Bill to continue the existing rates of income-tax for the financial year 2024-2025 and to
provide for certain relief to taxpayers and to make amendments in certain enactments.
BE it enacted by Parliament in the Seventy-fifth Year of the Republic of India as
follows:-
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Finance Act, 2024. Short title and
commencement.
(2) Save as otherwise provided in this Act,—
(a) sections 2 to 10 shall come into force on the 1st day of April, 2024;
(b) sections 11 to 13 shall come into force on such date as the Central Government
may, by notification in the Official Gazette, appoint.
CHAPTER II
RATES OF INCOME-TAX
2. The provisions of section 2 of, and the First Schedule to, the Finance Act, 2023 (8 of 2023.), Income-tax.
shall apply in relation to income-tax for the assessment year or, as the case may be, the
financial year commencing on the 1st day of April, 2024, as they apply in relation to
income-tax for the assessment year or, as the case may be, the financial year commencing on
the 1st day of April, 2023, with the following modifications, namely:-
(a) in section 2,—
(i) in sub-section (1), for the figures "2023", the figures "2024" shall be
substituted;
(ii) for sub-section (2), the following sub-section shall be substituted,
namely:-
'(2) In the cases to which Paragraph A of Part I of the First Schedule
applies, or in the cases where income is chargeable to tax under
sub-section (1A) of section 115BAC of the Income-tax Act, 1961 (43 of 1961.) (hereinafter
referred to as the Income- tax Act), and where the assessee has, in the
previous year, any net agricultural income exceeding five thousand rupees,
in addition to total income, and the total income exceeds two lakh fifty
thousand rupees, then, —
(a) the net agricultural income shall be taken into account, in
the manner provided in clause (b) (that is to say, as if the net
agricultural income were comprised in the total income after the
first two lakh fifty thousand rupees of the total income but without
being liable to tax), only for the purpose of charging income-tax in
respect of the total income; and
(b) the income-tax chargeable shall be computed as follows:-
(i) the total income and the net agricultural income shall
be aggregated and the amount of income-tax shall be
determined in respect of the aggregate income at the rates
specified in the said Paragraph A or sub-section (1A) of
section 115BAC, as if such aggregate income were the total
income;
(ii) the net agricultural income shall be increased by a
sum of two lakh fifty thousand rupees, and the amount of
income-tax shall be determined in respect of the net agricultural
income as so increased at the rates specified in the said
Paragraph A or sub-section (1A) of section 115BAC, as if the
net agricultural income as so increased were the total income;
(iii) the amount of income-tax determined in accordance
with sub-clause (i) shall be reduced by the amount of
income-tax determined in accordance with sub-clause (ii) and
the sum so arrived at shall be the income-tax in respect of the
total income:
Provided that in the case of every individual, being a
resident in India, who is of the age of sixty years or more but
less than eighty years at any time during the previous year,
referred to in item (II) of Paragraph A of Part I of the First
Schedule, the provisions of this sub-section shall have effect
as if for the words “two lakh fifty thousand rupees", the
words "three lakh rupees" had been substituted:
Provided further that in the case of every individual,
being a resident in India, who is of the age of eighty years or
more at any time during the previous year, referred to in item
(III) of Paragraph A of Part I of the First Schedule, the
provisions of this sub-section shall have effect as if for the
words "two lakh fifty thousand rupees", the words "five lakh
rupees" had been substituted:
Provided also that in the cases where income is
chargeable to tax under sub- section (1A) of section 115BAC
of the Income-tax Act, the provisions of this sub- section
shall have effect as if for the words "two lakh fifty thousand
rupees", the words “three lakh rupees” had been substituted.';
(iii) for sub-section (3), the following sub-section shall be substituted,
namely:-
"(3) In cases to which the provisions of Chapter XII or Chapter XII-
A or section 115JB or section 115JC or Chapter XII-FA or Chapter XII- FB
or sub-section (1A) of section 161 or section 164 or section 164A or
section 167B of the Income-tax Act apply, the tax chargeable shall be
determined as provided in that Chapter or that section, and with reference
to the rates imposed by sub-section (1) or the rates as specified in that
Chapter or section, as the case may be:
Provided that the amount of income-tax computed in accordance
with the provisions of section 111A or section 112 or section 112A of the
Income-tax Act shall be increased by a surcharge, for the purposes of the
Union, as provided in Paragraph A, B, C, D or E, as the case may be, of
Part I of the First Schedule, except in case of a domestic company whose
income is chargeable to tax under section 115BAA or section 115BAB of
the Income-tax Act or in case of an individual or Hindu undivided family
or association of persons, or body of individuals, whether incorporated
or not, or an artificial juridical person referred to in sub-clause (vii) of
clause (31) of section 2 of the Income-tax Act whose income is chargeable
to tax under sub-section (1A) of section 115BAC of the Income-tax Act,
or in case of co-operative society resident in India, whose income is
chargeable to tax under section 115BAD or under section 115BAE of the
Income-tax Act:
Provided further that in respect of any income chargeable to tax
under section 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BA,
115BB, 115BBA, 115BBC, 115BBF, 115BBG, 115BBH, 115BBI, 115BBJ, 115E,
115JB or 115JC of the Income-tax Act, the amount of income-tax computed
under this sub-section shall be increased by a surcharge, for the purposes
of the Union, calculated, -
(a) in the case of every individual or Hindu undivided family
or association of persons except in a case of an association of
persons consisting of only companies as its members, or body of
individuals, whether incorporated or not, or every artificial juridical
person referred to in sub-clause (vii) of clause (31) of section 2 of
the Income-tax Act, not having any income under section 115AD of
the Income-tax Act, and not having any income chargeable to tax
under sub-section (1A) of section 115BAC of the Income-tax Act, —
(i) having a total income exceeding fifty lakh rupees
but not exceeding one crore rupees, at the rate of ten
per cent. of such income-tax;
(ii) having a total income exceeding one crore rupees,
but not exceeding two crore rupees, at the rate of fifteen
per cent. of such income-tax;
(iii) having a total income exceeding two crore rupees,
but not exceeding five crore rupees, at the rate of twenty-five
per cent. of such income-tax; and
(iv) having a total income exceeding five crore rupees,
at the rate of thirty-seven per cent. of such income-tax;
(b) in the case of every individual or association of persons,
except in a case of an association of persons consisting of only
companies as its members or body of individuals, whether
incorporated or not, or every artificial juridical person referred to in
sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,
having income under section 115AD of the Income-tax Act, and not
having any income chargeable to tax under sub-section (1A) of
section 115BAC of the Income-tax Act,—
(i) having a total income exceeding fifty lakh rupees
but not exceeding one crore rupees, at the rate of ten
per cent. of such income-tax;
(ii) having a total income exceeding one crore rupees,
but not exceeding two crore rupees, at the rate of fifteen
per cent. of such income-tax;
(iii) having a total income [excluding the income by
way of dividend or income of the nature referred to in clause
(b) of sub-section (1) of section 115AD of the Income-tax
Act] exceeding two crore rupees but not exceeding five crore
rupees, at the rate of twenty-five per cent. of such
income-tax;
(iv) having a total income [excluding the income by
way of dividend or income of the nature referred to in clause
(b) of sub-section (1) of section 115AD of the Income-tax
Act] exceeding five crore rupees, at the rate of thirty-seven
per cent. of such income-tax; and
(v) having a total income [including the income by way
of dividend or income of the nature referred to in clause (b) of
sub-section (1) of section 115AD of the Income-tax Act]
exceeding two crore rupees, but is not covered in sub-clauses
(iii) and (iv), at the rate of fifteen per cent. of such
income-tax:
Provided that in case where the total income includes
any income by way of dividend or income chargeable under
clause (b) of sub-section (1) of section 115AD of the
Income-tax Act, the rate of surcharge on the income-tax
calculated on that part of income shall not exceed fifteen per cent.:
Provided further that where the total income of a person,
being a specified fund referred to in clause (c) of the
Explanation to clause (4D) of section 10 of the Income-tax
Act, includes any income under clause (a) of sub-section (1)
of section 115AD of the Income-tax Act, the income-tax
calculated on that part of income shall not be increased by
any surcharge;
(c) in the case of an association of persons consisting of
only companies as its members,—
(i) at the rate of ten per cent. of such income-tax, where
the total income exceeds fifty lakh rupees but does not exceed
one crore rupees;
(ii) at the rate of fifteen per cent. of such income-tax,
where the total income exceeds one crore rupees;
(d) in the case of every co-operative society except a
co-operative society whose income is chargeable to tax under
section 115BAD or section 115BAE of the Income- tax Act, -
(i) at the rate of seven per cent. of such income-tax,
where the total income exceeds one crore rupees but does
not exceed ten crore rupees;
(ii) at the rate of twelve per cent. of such income-tax,
where the total income exceeds ten crore rupees;
(e) in the case of every firm or local authority, at the rate of
twelve per cent. of such income-tax, where the total income exceeds
one crore rupees;
(f) in the case of every domestic company except such
domestic company whose income is chargeable to tax under
section 115BAA or section 115BAB of the Income-tax Act, -
(i) at the rate of seven per cent. of such income-tax,
where the total income exceeds one crore rupees but does
not exceed ten crore rupees;
(ii) at the rate of twelve per cent. of such income-tax,
where the total income exceeds ten crore rupees;
(g) in the case of every company, other than a domestic
company,-
(i) at the rate of two per cent. of such income-tax, where
the total income exceeds one crore rupees but does not exceed
ten crore rupees;
(ii) at the rate of five per cent. of such income-tax, where
the total income exceeds ten crore rupees:
Provided also that in the case of persons mentioned in
(a) and (b) above, having total income chargeable to tax under
section 115JC of the Income-tax Act, and such income
exceeds,-
(i) fifty lakh rupees but does not exceed one crore
rupees, the total amount payable as income-tax and
surcharge thereon shall not exceed the total amount
payable as income-tax on a total income of fifty lakh
rupees by more than the amount of income that exceeds
fifty lakh rupees;
(ii) one crore rupees but does not exceed
two crore rupees, the total amount payable as
income-tax and surcharge thereon shall not exceed the
total amount payable as income-tax and surcharge on a
total income of one crore rupees by more than the
amount of income that exceeds one crore rupees;
(iii) two crore rupees but does not exceed
five crore rupees, the total amount payable as
income-tax and surcharge thereon shall not exceed the
total amount payable as income-tax and surcharge on a
total income of two crore rupees by more than the
amount of income that exceeds two crore rupees;
(iv) five crore rupees, the total amount payable
as income-tax and surcharge shall not exceed
the total amount payable as income-tax and surcharge
on a total income of five crore rupees by more than the
amount of income that exceeds five crore rupees:
Provided also that in the case of association of
persons mentioned in (c) above, having total income
chargeable to tax under section 115JC of the
Income-tax Act exceeds, -
(i) fifty lakh rupees but does not exceed
one crore rupees, the total amount payable as
income-tax and surcharge thereon shall not
exceed the total amount payable as income-tax
on a total income of fifty lakh rupees by more
than the amount of income that exceeds fifty lakh
rupees;
(ii) one crore rupees, the total amount
payable as income-tax and surcharge thereon
shall not exceed the total amount payable as
income-tax and surcharge on a total income of
one crore rupees by more than the amount of
income that exceeds one crore rupees:
Provided also that in the case of a
co-operative society mentioned in (d) above,
having total income chargeable to tax under
section 115JC of the Income-tax Act, and such
income exceeds,-
(i) one crore rupees but does not
exceed ten crore rupees, the total amount
payable as income-tax and surcharge
thereon shall not exceed the total amount
payable as income-tax on a total income of
one crore rupees by more than the amount
of income that exceeds one crore rupees;
(ii) ten crore rupees, the total amount
payable as income-tax and surcharge
thereon shall not exceed the total amount
payable as income-tax and surcharge on a
total income of ten crore rupees by more
than the amount of income that exceeds
ten crore rupees:
Provided also that in the case of
persons mentioned in (e) above, having
total income chargeable to tax under
section 115JC of the Income-tax Act, and
such income exceeds one crore rupees, the
total amount payable as income-tax on such
income and surcharge thereon shall not
exceed the total amount payable as
income-tax on a total income of one crore
rupees by more than the amount of income
that exceeds one crore rupees:
Provided also that in the case of every
company having total income chargeable
to tax under section 115JB of the
Income-tax Act, and such income exceeds
one crore rupees but does not exceed ten
crore rupees, the total amount payable as
income-tax on such income and surcharge
thereon, shall not exceed the total amount
payable as income-tax on a total income of
one crore rupees by more than the amount
of income that exceeds one crore rupees:
Provided also that in the case of every
company having total income chargeable
to tax under section 115JB of the
Income-tax Act, and such income exceeds
ten crore rupees, the total amount payable
as income-tax on such income and
surcharge thereon, shall not exceed the
total amount payable as income-tax and
surcharge on a total income of ten crore
rupees by more than the amount of income
that exceeds ten crore rupees:
Provided also that in respect of any
income chargeable to tax under clause (i)
of sub-section (1) of section 115BBE of the
Income-tax Act, the amount of income-tax
computed under this sub- section shall be
increased by a surcharge, for the purposes
of the Union, calculated at the rate of
twenty-five per cent. of such income-tax:
Provided also that in case of every
domestic company whose income is
chargeable to tax under section 115BAA
or section 115BAB of the Income-tax Act,
the income-tax computed under this
sub-section shall be increased by a
surcharge, for the purposes of the Union,
calculated at the rate of ten per cent. of
such income-tax:
Provided also that in respect
of income chargeable to tax under
sub-section (1A) of section 115BAC of the
Income-tax Act, the income- tax computed
under this sub- section shall be increased
by a surcharge, for the purposes of the
Union, calculated, in the case of an
individual or Hindu undivided family or
association of persons or body of
individuals, whether incorporated or not,
or every artificial juridical person referred
to in sub-clause (vii) of clause (31) of
section 2 of the Income tax Act,—
(i) having a total income
(including the income by way
of dividend or income under
the provisions of section 111A,
section 112 and section 112A of the
Income-tax Act) exceeding fifty lakh
rupees but not exceeding one crore
rupees, at the rate of ten per cent. of
such income-tax;
(ii) having a total income
(including the income by way
of dividend or income under
the provisions of section 111A,
section 112 and section 112A of the
Income-tax Act) exceeding one crore
rupees but not exceeding two crore
rupees, at the rate of fifteen per cent.
of such income-tax;
(iii) having a total income
(excluding the income by way
of dividend or income under
the provisions of section 111A,
section 112 and section 112A of the
Income-tax Act) exceeding two crore
rupees, at the rate of twenty-five per
cent. of such income-tax; and
(iv) having a total income
(including the income by way of
dividend or income under the
provisions of section 111A, section
112 and section 112A of the
Income-tax Act) exceeding two crore
rupees, but is not covered under
clause (iii) above, at the rate of
fifteen per cent. of such income-tax:
Provided also that in case
where the provisions of sub-section
(1A) of section 115BAC are
applicable and the total income
includes any income by way of
dividend or income chargeable under
section 111A, section 112 and
section 112A of the Income-tax Act,
the rate of surcharge on the income-
tax in respect of that part of income
shall not exceed fifteen per cent.:
Provided also that in the case
of a specified fund, referred to in
clause (c) of the Explanation to
clause (4D) of section 10 of the
Income-tax Act, whose income is
chargeable to tax under sub-section
(1A) of section 115BAC and where
such income includes any income
under clause (a) of sub-section (1)
of section 115AD of the Income-tax
Act, the income-tax computed on that
part of income shall not be increased
by any surcharge:
Provided also that in case of
an association of persons consisting
of only companies as its members,
and having its income chargeable
to tax under sub-section (1A) of
section 115BAC, the rate of surcharge
on the income- tax shall not exceed
fifteen per cent.:
Provided also that in case of
every individual or Hindu undivided
family or association of persons, or
body of individuals, whether
incorporated or not, or every artificial
juridical person referred to in
sub-clause (vii) of clause (31) of
section 2 of the Income-tax Act,
having total income chargeable
to tax under sub-section (1A) of
section 115BAC of the Income-tax
Act, and such income exceeds, -
(i) fifty lakh rupees but
does not exceed one crore
rupees, the total amount
payable as income-tax on such
income and surcharge thereon
shall not exceed the total
amount payable as income-tax
on a total income of fifty lakh
rupees by more than the
amount of income that exceeds
fifty lakh rupees;
(ii) one crore rupees but
does not exceed two crore
rupees, the total amount
payable as income-tax on such
income and surcharge thereon
shall not exceed the total
amount payable as income-tax
and surcharge on a total
income of one crore rupees by
more than the amount of
income that exceeds one crore
rupees;
(iii) two crore rupees,
the total amount payable as
income-tax on such income and
surcharge thereon shall not
exceed the total amount
payable as income-tax and
surcharge on a total income of
two crore rupees by more than
the amount of income that
exceeds two crore rupees:
Provided also that in
case of every co-operative
society resident in India,
whose income is chargeable to
tax under section 115BAD
or section 115BAE of the
Income-tax Act, the income-tax
computed under this
sub-section shall be increased
by a surcharge, for the
purposes of the Union,
calculated at the rate of ten per
cent. of such income-tax.";
(iv) in sub-section (9), —
(A) in the second proviso, for the words "resident co-operative
society", the words “co- operative society resident in India" shall be
substituted;
(B) in the fourth proviso, clauses (a) to (d) shall be renumbered as
clauses (i) to (iv) thereof;
(C) in the fifth proviso, —
(I) in the opening portion, after the words “in the case of”,
the words "association of shall be inserted;
(II) clauses (a) and (b) shall be renumbered as clauses (i) and
(ii) thereof;
(D) in the sixth proviso, -
(I) in the opening portion, for the word "persons", the words
"a co-operative society” shall be substituted;
(II) clauses (a) and (b) shall be renumbered as clauses (i) and
(ii) thereof;
(E) in the sixteenth proviso,
(I) in the opening portion, after the words “chargeable to tax
under", the words, brackets, figure and letter "sub-section (1A) of"
shall be inserted;
(II) clauses (a) to (c) shall be renumbered as clauses (i) to (iii)
thereof;
(F) in the seventeenth proviso, for the words "resident co-operative
society", the words “co-operative society resident in India” shall be
substituted;
(v) in sub-section (10), —
(A) in the opening portion, for the portion beginning with the words
"or in case" and ending with the word “whose", the words "or in cases
where" shall be substituted;
(B) in the third proviso, for the portion beginning with the words
"in the case" and ending with the word “whose”, the words “in the cases
where" shall be substituted;
(vi) in sub-section (13), in clause (a), for the figures "2023", the figures
"2024" shall be substituted;
(b) in the First Schedule,—
(i) for Part I and Part II, the following Parts shall be substituted,
namely:-
'PART I
INCOME-TAX
Paragraph A
(I) In the case of every individual other than the individual referred to in items (II) and
(III) of this Paragraph or Hindu undivided family or association of persons or body of
individuals, whether incorporated or not, or every artificial juridical person referred to in
sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which
any other Paragraph of this Part applies,-
Rates of income-tax
+---------------------------------+-------------------------------------------------+
| (1) where the total income does not | Nil; |
| exceed Rs. 2,50,000 | |
+---------------------------------+-------------------------------------------------+
| (2) where the total income exceeds | 5 per cent. of the amount by which the total |
| Rs. 2,50,000 but does not exceed| income exceeds Rs. 2,50,000; |
| Rs. 5,00,000 | |
+---------------------------------+-------------------------------------------------+
| (3) where the total income exceeds | Rs.12,500 plus 20 per cent. of the amount |
| Rs. 5,00,000 but does not exceed| by which the total income exceeds |
| Rs. 10,00,000 | Rs. 5,00,000; |
+---------------------------------+-------------------------------------------------+
| (4) where the total income exceeds | Rs. 1,12,500 plus 30 per cent. of the amount |
| Rs. 10,00,000 | by which the total income exceeds |
| | Rs.10,00,000. |
+---------------------------------+-------------------------------------------------+
(II) In the case of every individual, being a resident in India, who is of the age of sixty
years or more but less than eighty years at any time during the previous year,—
Rates of income-tax
+---------------------------------+-------------------------------------------------+
| (1) where the total income does not | Nil; |
| exceed Rs. 3,00,000 | |
+---------------------------------+-------------------------------------------------+
| (2) where the total income exceeds | 5 per cent. of the amount by which the total |
| Rs. 3,00,000 but does not exceed| income exceeds Rs. 3,00,000; |
| Rs. 5,00,000 | |
+---------------------------------+-------------------------------------------------+
| (3) where the total income exceeds | Rs.10,000 plus 20 per cent. of the amount |
| Rs. 5,00,000 but does not exceed| by which the total income exceeds |
| Rs. 10,00,000 | Rs. 5,00,000; |
+---------------------------------+-------------------------------------------------+
| (4) where the total income exceeds | Rs. 1,10,000 plus 30 per cent. of the amount |
| Rs. 10,00,000 | by which the total income exceeds |
| | Rs. 10,00,000. |
+---------------------------------+-------------------------------------------------+
(III) In the case of every individual, being a resident in India, who is of the age of
eighty years or more at any time during the previous year,—
Rates of income-tax
+---------------------------------+-------------------------------------------------+
| (1) where the total income does not | Nil; |
| exceed Rs. 5,00,000 | |
+---------------------------------+-------------------------------------------------+
| (2) where the total income exceeds | 20 per cent. of the amount by which the total |
| Rs. 5,00,000 but does not exceed| income exceeds Rs. 5,00,000; |
| Rs. 10,00,000 | |
+---------------------------------+-------------------------------------------------+
| (3) where the total income exceeds | Rs. 1,00,000 plus 30 per cent. of the amount |
| Rs. 10,00,000 | by which the total income exceeds |
| | Rs. 10,00,000. |
+---------------------------------+-------------------------------------------------+
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of
this Paragraph, or the provisions of section 111A or section 112 or section 112A of the
Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated,
in the case of every individual or Hindu undivided family or association of persons or body
of individuals, whether incorporated or not, or every artificial juridical person referred to in
sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—
(a) having a total income (including the income by way of dividend or income
under the provisions of section 111A, section 112 and section 112A of the
Income-tax Act) exceeding fifty lakh rupees but not exceeding one crore rupees, at
the rate of ten per cent. of such income-tax;
(b) having a total income (including the income by way of dividend or income
under the provisions of section 111A, section 112 and section 112A of the Income-tax
Act) exceeding one crore rupees, but not exceeding two crore rupees, at the rate of
fifteen per cent. of such income-tax;
(c) having a total income (excluding the income by way of dividend or income
under the provisions of section 111A, section 112 and section 112A of the Income-tax
Act) exceeding two crore rupees but not exceeding five crore rupees, at the rate of
twenty-five per cent. of such income-tax;
(d) having a total income (excluding the income by way of dividend or income
under the provisions of section 111A, section 112 and section 112A of the Income-tax
Act) exceeding five crore rupees, at the rate of thirty-seven per cent. of such
income-tax; and
(e) having a total income (including the income by way of dividend or income
under the provisions of section 111A, section 112 and section 112A of the Income-tax
Act) exceeding two crore rupees but is not covered under clauses (c) and (d), at the
rate of fifteen per cent. of such income-tax:
Provided that in case where the total income includes any income by way of
dividend or income under the provisions of section 111A, section 112 and
section 112A of the Income-tax Act, the rate of surcharge on the amount of income-tax
computed in respect of that part of income shall not exceed fifteen per cent.:
Provided further that in case of an association of persons consisting of only
companies as its members, the rate of surcharge on the amount of income-tax shall not
exceed fifteen per cent.:
Provided also that in the case of persons mentioned above having total income
exceeding,-
(a) fifty lakh rupees but not exceeding one crore rupees, the total amount
payable as income-tax and surcharge on such income shall not exceed the total
amount payable as income-tax on a total income of fifty lakh rupees by more
than the amount of income that exceeds fifty lakh rupees;
(b) one crore rupees but does not exceed two crore rupees, the total
amount payable as income-tax and surcharge on such income shall not exceed
the total amount payable as income-tax and surcharge on a total income of one
crore rupees by more than the amount of income that exceeds one crore rupees;
(c) two crore rupees but does not exceed five crore rupees, the total
amount payable as income-tax and surcharge on such income shall not exceed
the total amount payable as income-tax and surcharge on a total income of
two crore rupees by more than the amount of income that exceeds two crore
rupees;
(d) five crore rupees, the total amount payable as income-tax and surcharge
on such income shall not exceed the total amount payable as income-tax and
surcharge on a total income of five crore rupees by more than the amount of
income that exceeds five crore rupees.
Paragraph B
In the case of every co-operative society, -
Rates of income-tax
+---------------------------------+-------------------------------------------------+
| (1) where the total income does not | 10 per cent. of the total income; |
| exceed Rs. 10,000 | |
+---------------------------------+-------------------------------------------------+
| (2) where the total income exceeds | Rs. 1,000 plus 20 per cent. of the amount |
| Rs. 10,000 but does not exceed| by which the total income exceeds |
| Rs. 20,000 | Rs.10,000; |
+---------------------------------+-------------------------------------------------+
| (3) where the total income exceeds | Rs. 3,000 plus 30 per cent. of the amount |
| Rs. 20,000 | by which the total income exceeds |
| | Rs. 20,000. |
+---------------------------------+-------------------------------------------------+
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of
this Paragraph, or the provisions of section 111A or section 112 or section 112A of the
Income-tax Act, shall, be increased by a surcharge for the purposes of the Union, calculated
in the case of every co-operative society,--
(a) having a total income exceeding one crore rupees but not exceeding
ten crore rupees, at the rate of seven per cent. of such income-tax;
(b) having a total income exceeding ten crore rupees, at the rate of twelve per
cent. of such income-tax:
Provided that in the case of every co-operative society having total income
exceeding one crore rupees but not exceeding ten crore rupees, the total amount
payable as income-tax and surcharge on such income shall not exceed the total amount
payable as income-tax on a total income of one crore rupees by more than the amount
of income that exceeds one crore rupees:
Provided further that in the case of every co-operative society having a total
income exceeding ten crore rupees, the total amount payable as income-tax and
surcharge on such income shall not exceed the total amount payable as income-tax
and surcharge on a total income of ten crore rupees by more than the amount of
income that exceeds ten crore rupees.
Paragraph C
In the case of every firm,-
Rate of income-tax
On the whole of the total income 30 per cent.
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions
of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the
Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore
rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of
twelve per cent. of such income-tax:
Provided that in the case of every firm mentioned above having total income
exceeding one crore rupees, the total amount payable as income-tax and surcharge on such
income shall not exceed the total amount payable as income-tax on a total income of
one crore rupees by more than the amount of income that exceeds one crore rupees.
Paragraph D
In the case of every local authority,—
Rate of income-tax
On the whole of the total income 30 per cent.
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of
this Paragraph, or the provisions of section 111A or section 112 or section 112A of the
Income-tax Act, shall, in the case of every local authority, having a total income exceeding
one crore rupees, be increased by a surcharge for the purposes of the Union calculated at
the rate of twelve per cent. of such income-tax:
Provided that in the case of every local authority mentioned above having total
income exceeding one crore rupees, the total amount payable as income-tax and surcharge
on such income shall not exceed the total amount payable as income-tax on a total income
of one crore rupees by more than the amount of income that exceeds one crore rupees.
Paragraph E
In the case of a company, -
Rates of income-tax
I. In the case of a domestic company,—
+-----------------------------------+---------------------------------+
| (i) where its total turnover or the | 25 per cent. of the total income; |
| gross receipt in the previous | |
| year 2021-22 does not exceed | |
| four hundred crore rupees | |
+-----------------------------------+---------------------------------+
| (ii) other than that referred to | 30 per cent. of the total income.|
| in item (i) | |
+-----------------------------------+---------------------------------+
II. In the case of a company other than a domestic company,—
(i) on so much of the total income
as consists of,- 50 per cent.;
(a) royalties received
from Government or an Indian
concern in pursuance of an
agreement made by it with the
Government or the Indian
concern after the 31st day of
March, 1961 but before the
1st day of April, 1976; or
(b) fees for rendering
technical services received
from Government or an Indian
concern in pursuance of an
agreement made by it with the
Government or the Indian
concern after the 29th day of
February, 1964 but before the
1st day of April, 1976,
and where such agreement has, in
either case, been approved by the
Central Government
(ii) on the balance, if any, of the
total income 40 per cent.
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of
this Paragraph, or the provisions of section 111A or section 112 or section 112A of the
Income-tax Act, shall, be increased by a surcharge for the purposes of the Union calculated, —
(i) in the case of every domestic company,-
(a) having a total income exceeding one crore rupees but not exceeding
ten crore rupees, at the rate of seven per cent. of such income-tax; and
(b) having a total income exceeding ten crore rupees, at the rate of twelve
per cent. of such income-tax;
(ii) in the case of every company other than a domestic company,-—
(a) having a total income exceeding one crore rupees but not exceeding
ten crore rupees, at the rate of two per cent. of such income-tax; and
(b) having a total income exceeding ten crore rupees, at the rate of five
per cent. of such income-tax:
Provided that in the case of every company having a total income
exceeding one crore rupees but not exceeding ten crore rupees, the total amount
payable as income-tax and surcharge on such income shall not exceed the total
amount payable as income-tax on a total income of one crore rupees by more
than the amount of income that exceeds one crore rupees:
Provided further that in the case of every company having a total income
exceeding ten crore rupees, the total amount payable as income-tax and surcharge
on such income shall not exceed the total amount payable as income-tax and
surcharge on a total income of ten crore rupees by more than the amount of
income that exceeds ten crore rupees.
PART II
RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES
In every case in which under the provisions of sections 193, 194A, 194B, 194BA,
194BB, 194D, 194LBA, 194LBB, 194LBC and 195 of the Income-tax Act, tax is to be deducted
at the rates in force, deduction shall be made from the income subject to the deduction at the
following rates:-
+-------------------------------------------------------------+-----------------+
| | Rate of |
| | income-tax |
+=============================================================+=================+
| 1. In the case of a person other than | |
| a company— | |
| (a) where the person is resident in India— | |
| (i) on income by way of interest | 10 per cent.; |
| other than "Interest on securities" | |
+-------------------------------------------------------------+-----------------+
| (ii) on income by way of winnings | 30 per cent.; |
| from lotteries, puzzles, card games and | |
| other games of any sort (other than | |
| winnings from online games) | |
+-------------------------------------------------------------+-----------------+
| (iii) on income by way of winnings | 30 per cent.; |
| from horse races | |
+-------------------------------------------------------------+-----------------+
| (iv) on income by way of net winnings | 30 per cent.; |
| from online games | |
+-------------------------------------------------------------+-----------------+
| (v) on income by way of insurance | 5 per cent.; |
| commission | |
+-------------------------------------------------------------+-----------------+
| (vi) on income by way of interest | 10 per cent.; |
| payable on— | |
| (A) any debentures or securities for | |
| money issued by or on behalf of any local | |
| authority or a corporation established by a | |
| Central, State or Provincial Act; | |
| | |
| (B) any debentures issued by a | |
| company where such debentures are listed | |
| on a recognised stock exchange in India in | |
| accordance with the Securities Contracts | |
| (Regulation) Act, 1956 (42 of 1956) and the | |
| rules made thereunder; | |
| | |
| (C) any security of the Central or State | |
| Government; | |
+-------------------------------------------------------------+-----------------+
| (vii) on any other income | 10 per cent.; |
+-------------------------------------------------------------+-----------------+
| (b) where the person is not resident in India— | |
| (i) in the case of a non-resident Indian— | |
+-------------------------------------------------------------+-----------------+
| (A) on any investment income | 20 per cent.; |
+-------------------------------------------------------------+-----------------+
| (B) on income by way of long-term | 10 per cent.; |
| capital gains referred to in section 115E | |
| or sub-clause (iii) of clause (c) of | |
| sub-section (1) of section 112 | |
+-------------------------------------------------------------+-----------------+
| (C) on income by way of | 10 per cent.; |
| long-term capital gains referred to in | |
| section 112A exceeding one lakh rupees | |
+-------------------------------------------------------------+-----------------+
| (D) on income by way of other | 20 per cent.; |
| long-term capital gains [not being | |
| long-term capital gains referred to in | |
| clauses (33) and (36) of section 10] | |
+-------------------------------------------------------------+-----------------+
| (E) on income by way of | 15 per cent.; |
| short-term capital gains referred to in | |
| section 111A | |
+-------------------------------------------------------------+-----------------+
| (F) on income by way of interest | 20 per cent.; |
| payable by Government or an Indian | |
| concern on moneys borrowed or debt | |
| incurred by Government or the Indian | |
| concern in foreign currency (not being | |
| income by way of interest referred to in | |
| section 194LB or section 194LC) | |
+-------------------------------------------------------------+-----------------+
| (G) on income by way of royalty | 20 per cent.; |
| payable by Government or an Indian | |
| concern in pursuance of an agreement | |
| made by it with the Government or the | |
| Indian concern where such royalty is in | |
| consideration for the transfer of all or | |
| any rights (including the granting of a | |
| licence) in respect of copyright in any | |
| book on a subject referred to in the | |
| first proviso to sub-section (1A) of | |
| section 115A of the Income-tax Act, to | |
| the Indian concern, or in respect of any | |
| computer software referred to in the | |
| second proviso to sub-section (1A) of | |
| section 115A of the Income-tax Act, to a | |
| person resident in India | |
+-------------------------------------------------------------+-----------------+
| (H) on income by way of royalty | 20 per cent.; |
| [not being royalty of the nature referred | |
| to in sub-item (b)(i)(G)] payable by | |
| Government or an Indian concern in | |
| pursuance of an agreement made by it | |
| with the Government or the Indian | |
| concern and where such agreement is | |
| with an Indian concern, the agreement | |
| is approved by the Central Government | |
| or where it relates to a matter included | |
| in the industrial policy, for the time being | |
| in force, of the Government of India, the | |
| agreement is in accordance with that | |
| policy | |
+-------------------------------------------------------------+-----------------+
| (I) on income by way of fees for | 20 per cent.; |
| technical services payable by | |
| Government or an Indian concern in | |
| pursuance of an agreement made by it | |
| with the Government or the Indian | |
| concern and where such agreement is | |
| with an Indian concern, the agreement | |
| is approved by the Central Government | |
| or where it relates to a matter included | |
| in the industrial policy, for the time being | |
| in force, of the Government of India, the | |
| agreement is in accordance with that | |
| policy | |
+-------------------------------------------------------------+-----------------+
| (J) on income by way of winnings | 30 per cent.; |
| from lotteries, crossword puzzles, card | |
| games and other games of any sort | |
| (other than winnings from online games) | |
+-------------------------------------------------------------+-----------------+
| (K) on income by way of winnings | 30 per cent.; |
| from horse races | |
+-------------------------------------------------------------+-----------------+
| (L) on income by way of net | 30 per cent.; |
| winnings from online games | |
+-------------------------------------------------------------+-----------------+
| (M) on the income by way of | 10 per cent.; |
| dividend, referred to in the proviso to | |
| sub-clause (A) of clause (a) of sub- | |
| section (1) of section 115A | |
+-------------------------------------------------------------+-----------------+
| (N) on income by way of dividend | 20 per cent.; |
| other than the income referred to in sub- | |
| item (b)(i)(M) | |
+-------------------------------------------------------------+-----------------+
| (O) on the whole of the other | 30 per cent.; |
| income | |
+-------------------------------------------------------------+-----------------+
| (ii) in the case of any other person— | |
+-------------------------------------------------------------+-----------------+
| (A) on income by way of interest | 20 per cent.; |
| payable by Government or an Indian | |
| concern on moneys borrowed or debt | |
| incurred by Government or the Indian | |
| concern in foreign currency (not being | |
| income by way of interest referred to in | |
| section 194LB or section 194LC) | |
+-------------------------------------------------------------+-----------------+
| (B) on income by way of royalty | 20 per cent.; |
| payable by Government or an Indian | |
| concern in pursuance of an agreement | |
| made by it with the Government or the | |
| Indian concern where such royalty is in | |
| consideration for the transfer of all or | |
| any rights (including the granting of a | |
| licence) in respect of copyright in | |
| any book on a subject referred to in the | |
| first proviso to sub-section (1A) of | |
| section 115A of the Income-tax Act, to | |
| the Indian concern, or in respect of any | |
| computer software referred to in the | |
| second proviso to sub-section (1A) of | |
| section 115A of the Income-tax Act, to a | |
| person resident in India | |
+-------------------------------------------------------------+-----------------+
| (C) on income by way of royalty | 20 per cent.; |
| [not being royalty of the nature referred | |
| to in sub-item (b)(ii)(B)] payable by | |
| Government or an Indian concern in | |
| pursuance of an agreement made by it | |
| with the Government or the Indian | |
| concern and where such agreement is | |
| with an Indian concern, the agreement | |
| is approved by the Central Government | |
| or where it relates to a matter included | |
| in the industrial policy, for the time being | |
| in force, of the Government of India, the | |
| agreement is in accordance with that | |
| policy | |
+-------------------------------------------------------------+-----------------+
| (D) on income by way of fees for | 20 per cent.; |
| technical services payable by | |
| Government or an Indian concern in | |
| pursuance of an agreement made by it | |
| with the Government or the Indian | |
| concern and where such agreement is | |
| with an Indian concern, the agreement | |
| is approved by the Central Government | |
| or where it relates to a matter included | |
| in the industrial policy, for the time being | |
| in force, of the Government of India, the | |
| agreement is in accordance with that | |
| policy | |
+-------------------------------------------------------------+-----------------+
| (E) on income by way of winnings | 30 per cent.; |
| from lotteries, crossword puzzles, card | |
| games and other games of any sort | |
| (other than winnings from online games) | |
+-------------------------------------------------------------+-----------------+
| (F) on income by way of winnings | 30 per cent.; |
| from horse races | |
+-------------------------------------------------------------+-----------------+
| (G) on income by way of net | 30 per cent.; |
| winnings from online games | |
+-------------------------------------------------------------+-----------------+
| (H) on income by way of | 15 per cent.; |
| short-term capital gains referred to in | |
| section 111A | |
+-------------------------------------------------------------+-----------------+
| (I) on income by way of long-term | 10 per cent.; |
| capital gains referred to in sub-clause | |
| (iii) of clause (c) of sub-section (1) of | |
| section 112 | |
+-------------------------------------------------------------+-----------------+
| (J) on income by way of long-term capital | 10 per cent.; |
| gains referred to in section 112A exceeding | |
| one lakh rupees | |
+-------------------------------------------------------------+-----------------+
| (K) on income by way of other | 20 per cent.; |
| long-term capital gains [not being | |
| long-term capital gains referred to in | |
| clauses (33) and (36) of section 10] | |
+-------------------------------------------------------------+-----------------+
| (L) on income by way of dividend, | 10 per cent.; |
| referred to in the proviso to sub-clause | |
| (A) of clause (a) of sub-section (1) of | |
| section 115A | |
+-------------------------------------------------------------+-----------------+
| (M) on income by way of dividend | 20 per cent.; |
| other than the income referred to in sub- | |
| item (b)(ii)(L) | |
+-------------------------------------------------------------+-----------------+
| (N) on the whole of the other | 30 per cent.; |
| income | |
+-------------------------------------------------------------+-----------------+
2. In the case of a company-
(a) where the company is a domestic
company-
(i) on income by way of interest other 10 per cent.;
than "Interest on securities"
(ii) on income by way of winnings from 30 per cent.;
lotteries, puzzles, card games and other games
of any sort (other than winnings from online
games)
(iii) on income by way of winnings from 30 per cent.;
horse races
(iv) on income by way of net winnings 30 per cent.;
from online games
(v) on any other income 10 per cent.;
(b) where the company is not a domestic
company-
(i) on income by way of winnings from 30 per cent.;
lotteries, crossword puzzles, card games and
other games of any sort (other than winnings
from online games)
(ii) on income by way of winnings from 30 per cent.;
horse races
(iii) on income by way of net winnings 30 per cent.;
from online games
(iv) on income by way of interest payable 20 per cent.;
by Government or an Indian concern on
moneys borrowed or debt incurred by
Government or the Indian concern in foreign
currency (not being income by way of interest
referred to in section 194LB or section 194LC)
(v) on income by way of royalty payable 20 per cent.;
by Government or an Indian concern in
pursuance of an agreement made by it with
the Government or the Indian concern after
the 31st day of March, 1976 where such
royalty is in consideration for the transfer of
all or any rights (including the granting of a
licence) in respect of copyright in any book
on a subject referred to in the first proviso to
sub-section (1A) of section 115A of the
Income-tax Act, to the Indian concern, or in
respect of any computer software referred to
in the second proviso to sub-section (1A) of
section 115A of the Income-tax Act, to a person
resident in India
(vi) on income by way of royalty [not
being royalty of the nature referred to in item
(b)(v)] payable by Government or an Indian
concern in pursuance of an agreement made
by it with the Government or the Indian
concern and where such agreement is with an
Indian concern, the agreement is approved
by the Central Government or where it relates
to a matter included in the industrial policy,
for the time being in force, of the Government
of India, the agreement is in accordance with
that policy—
(A) where the agreement is made 50 per cent.;
after the 31st day of March, 1961 but
before the 1st day of April, 1976
(B) where the agreement is made 20 per cent.;
after the 31st day of March, 1976
(vii) on income by way of fees for
technical services payable by Government or
an Indian concern in pursuance of an
agreement made by it with the Government or
the Indian concern and where such agreement
is with an Indian concern, the agreement is
approved by the Central Government or where
it relates to a matter included in the industrial
policy, for the time being in force, of the
Government of India, the agreement is in
accordance with that policy—
(A) where the agreement is made 50 per cent.;
after the 29th day of February, 1964 but
before the 1st day of April, 1976
(B) where the agreement is made 20 per cent.;
after the 31st day of March, 1976
(viii) on income by way of short-term 15 per cent.;
capital gains referred to in section 111A
(ix) on income by way of long-term 10 per cent.;
capital gains referred to in sub-clause (iii) of
clause (c) of sub-section (1) of section 112
(x) on income by way of long-term capital 10 per cent.;
gains referred to in section 112A exceeding
one lakh rupees
(xi) on income by way of other long- 20 per cent.;
term capital gains [not being long-term capital
gains referred to in clauses (33) and (36) of
section 10]
(xii) on income by way of dividend, 10 per cent.;
referred to in the proviso to sub-clause (A) of
clause (a) of sub-section (1) of section 115A
(xiii) on income by way of dividend other 20 per cent.;
than the income referred to in item (b)(xii)
(xiv) on any other income 40 per cent.;
Explanation. For the purposes of item 1(b)(i) of this Part, "investment
income" and "non-resident Indian" shall have the meanings respectively
assigned to them in Chapter XII-A of the Income-tax Act.
Surcharge on income-tax
The amount of income-tax deducted in accordance with the provisions of--
(i) item 1 of this Part, shall be increased by a surcharge, for the purposes of the
Union,--
(a) in the case of every individual or Hindu undivided family or association
of persons, except in case of an association of persons consisting of only
companies as its members, or body of individuals, whether incorporated or not,
or every artificial juridical person referred to in sub-clause (vii) of clause (31) of
section 2 of the Income-tax Act, being a non-resident, calculated,--
I. at the rate of ten per cent. of such tax, where the income or the
aggregate of such incomes (including the income by way of dividend or
income under the provisions of sections 111A, 112 and 112A of the
Income-tax Act) paid or likely to be paid and subject to the deduction
exceeds fifty lakh rupees but does not exceed one crore rupees;
II. at the rate of fifteen per cent. of such tax, where the income or the
aggregate of such incomes (including the income by way of dividend or
income under the provisions of sections 111A, 112 and 112A of the
Income-tax Act) paid or likely to be paid and subject to the deduction
exceeds one crore rupees but does not exceed two crore rupees;
III. at the rate of twenty-five per cent. of such tax, where the income
or the aggregate of such incomes (excluding the income by way of dividend
or income under the provisions of sections 111A, 112 and 112A of the
Income-tax Act) paid or likely to be paid and subject to the deduction
exceeds two crore rupees but does not exceed five crore rupees;
IV. at the rate of thirty-seven per cent. of such tax, where the income
or the aggregate of such incomes (excluding the income by way of dividend
or income under the provisions of sections 111A, 112 and 112A of the
Income-tax Act) paid or likely to be paid and subject to the deduction
exceeds five crore rupees; and
V. at the rate of fifteen per cent. of such tax, where the income or the
aggregate of such incomes (including the income by way of dividend or
income under the provisions of sections 111A, 112 and 112A of the
Income-tax Act) paid or likely to be paid and subject to the deduction
exceeds two crore rupees, but is not covered under sub-clauses III and
IV:
Provided that in case where the total income includes any income
by way of dividend or income under the provisions of sections 111A, 112
and 112A of the Income-tax Act, the rate of surcharge on the amount of
Income-tax deducted in respect of that part of income shall not exceed
fifteen per cent.:
Provided further that where the income of such person is chargeable
to tax under sub-section (1A) of section 115BAC of the Income-tax Act,
the rate of surcharge shall not exceed twenty-five per cent.;
(b) in the case of every co-operative society, being a non-resident,
calculated,--
I. at the rate of seven per cent. of such tax, where the income or the
aggregate of such incomes paid or likely to be paid and subject to the
deduction exceeds one crore rupees but does not exceed ten crore rupees;
II. at the rate of twelve per cent. where the income or the aggregate
of such incomes paid or likely to be paid and subject to the deduction
exceeds ten crore rupees;
(c) in the case of an association of persons being a non-resident, and
consisting of only companies as its members, calculated,--
I. at the rate of ten per cent. of such tax, where the income or the
aggregate of such incomes paid or likely to be paid and subject to the
deduction exceeds fifty lakh rupees but does not exceed one crore rupees;
II. at the rate of fifteen per cent. of such tax, where the income or the
aggregate of such incomes paid or likely to be paid and subject to the
deduction exceeds one crore rupees;
(d) in the case of every firm, being a non-resident, calculated at the rate of
twelve per cent., where the income or the aggregate of such incomes paid or
likely to be paid and subject to the deduction exceeds one crore rupees;
(ii) item 2 of this Part shall be increased by a surcharge, for the purposes of the
Union, in the case of every company other than a domestic company, calculated,--
(a) at the rate of two per cent. of such tax where the income or the aggregate
of such incomes paid or likely to be paid and subject to the deduction exceeds
one crore rupees but does not exceed ten crore rupees; and
(b) at the rate of five per cent. of such tax where the income or the aggregate
of such incomes paid or likely to be paid and subject to the deduction exceeds
ten crore rupees.';
(ii) in Part III, in Paragraph E, under the heading "Rates of income-tax", in
clause (1), in sub-clause (i), for the figures "2021-2022", the figures "2022-2023" shall
be substituted;
(iii) in Part IV, for Rule 8, the following Rule shall be substituted, namely:-
"Rule 8.-(1) Where the assessee has, in the previous year relevant
to the assessment year commencing on the 1st day of April, 2024, any
agricultural income and the net result of the computation of the agricultural
income of the assessee for any one or more of the previous years relevant
to the assessment years commencing on the 1st day of April, 2016 or the
1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April,
2019 or the 1st day of April, 2020 or the 1st day of April, 2021, or the
1st day of April, 2022, or the 1st day of April, 2023, is a loss, then, for the
purposes of sub-section (2) of section 2 of this Act,--
(i) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2016, to the
extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year
commencing on the 1st day of April, 2017 or the 1st day of April,
2018 or the 1st day of April, 2019 or the 1st day of April, 2020 or the
1st day of April, 2021 or the 1st day of April, 2022, or the 1st day of
April, 2023,
(ii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2017, to the
extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year
commencing on the 1st day of April, 2018 or the 1st day of April,
2019 or the 1st day of April, 2020 or the 1st day of April, 2021 or the
1st day of April, 2022, or the 1st day of April, 2023,
(iii) the loss so computed for the previous year relevant to
the assessment year commencing on the 1st day of April, 2018, to
the extent, if any, such loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2019 or the 1st day of
April, 2020 or the 1st day of April, 2021 or the 1st day of April, 2022,
or the 1st day of April, 2023,
(iv) the loss so computed for the previous year relevant to
the assessment year commencing on the 1st day of April, 2019, to
the extent, if any, such loss has not been set off against the
agricultural income for the previous year relevant to the assessment
year commencing on the 1st day of April, 2020 or the 1st day of
April, 2021 or the 1st day of April, 2022, or the 1st day of April, 2023,
(v) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2020, to the
extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year
commencing on the 1st day of April, 2021 or the 1st day of April,
2022, or the 1st day of April, 2023,
(vi) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2021, to the
extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year
commencing on the 1st day of April, 2022, or the 1st day of
April, 2023,
(vii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2022, to the
extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year
commencing on the 1st day of April, 2023,
(viii) the loss so computed for the previous year relevant to
the assessment year commencing on the 1st day of April, 2023,
shall be set off against the agricultural income of the assessee for the
previous year relevant to the assessment year commencing on the
1st day of April, 2024.
(2) Where the assessee has, in the previous year relevant to the
assessment year commencing on the 1st day of April, 2025, or, if by virtue of
any provision of the Income-tax Act, income-tax is to be charged in respect of
the income of a period other than the previous year, in such other period, any
agricultural income and the net result of the computation of the agricultural
income of the assessee for any one or more of the previous years relevant to the
assessment years commencing on the 1st day of April, 2017 or the 1st day of
April, 2018 or the 1st day of April, 2019 or the 1st day of April, 2020 or the
1st day of April, 2021 or the 1st day of April, 2022 or the 1st day of April, 2023,
or the 1st day of April, 2024, is a loss, then, for the purposes of sub-section (10)
of section 2 of this Act,--
(i) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2017, to the extent,
if any, such loss has not been set off against the agricultural income for
the previous year relevant to the assessment year commencing on the
1st day of April, 2018 or the 1st day of April, 2019 or the 1st day of
April, 2020 or the 1st day of April, 2021 or the 1st day of April, 2022 or the
1st day of April, 2023, or the 1st day of April, 2024,
(ii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2018, to the extent,
if any, such loss has not been set off against the agricultural income for
the previous year relevant to the assessment year commencing on the
1st day of April, 2019 or the 1st day of April, 2020 or the 1st day of April, 2021
or the 1st day of April, 2022 or the 1st day of April, 2023, or the 1st day of
April, 2024,
(iii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2019, to the extent,
if any, such loss has not been set off against the agricultural income for
the previous year relevant to the assessment year commencing on the
1st day of April, 2020 or the 1st day of April, 2021 or the 1st day of
April, 2022 or the 1st day of April, 2023, or the 1st day of April, 2024,
(iv) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2020, to the extent,
if any, such loss has not been set off against the agricultural income for
the previous year relevant to the assessment year commencing on the
1st day of April, 2021 or the 1st day of April, 2022 or the 1st day of
April, 2023, or the 1st day of April, 2024,
(v) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2021, to the extent,
if any, such loss has not been set off against the agricultural income for
the previous year relevant to the assessment year commencing on the
1st day of April, 2022 or the 1st day of April, 2023, or the 1st day of
April, 2024,
(vi) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2022, to the extent,
if any, such loss has not been set off against the agricultural income for
the previous year relevant to the assessment year commencing on the
1st day of April, 2023, or the 1st day of April, 2024,
(vii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2023, to the extent,
if any, such loss has not been set off against the agricultural income for
the previous year relevant to the assessment year commencing on the
1st day of April, 2024,
(viii) the loss so computed for the previous year relevant to the
assessment year commencing on the 1st day of April, 2024,
shall be set off against the agricultural income of the assessee for the previous
year relevant to the assessment year commencing on the 1st day of April, 2025.
(3) Where any person deriving any agricultural income from any source
has been succeeded in such capacity by another person, otherwise than by
inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person,
other than the person incurring the loss, to have it set off under sub-rule (1) or,
as the case may be, sub-rule (2).
(4) Notwithstanding anything contained in this rule, no loss which has
not been determined by the Assessing Officer under the provisions of these
rules or the rules contained in the First Schedule to the Finance Act, 2016 (28 of
2016) or the First Schedule to the Finance Act, 2017 (7 of 2017) or the First
Schedule to the Finance Act, 2018 (13 of 2018) or the First Schedule to the
Finance (No. 2) Act, 2019 (23 of 2019) or the First Schedule to the Finance Act,
2020 (12 of 2020) or the First Schedule to the Finance Act, 2021 (13 of 2021) or
the First Schedule to the Finance Act, 2022 (6 of 2022) or the First Schedule to
the Finance Act, 2023 (8 of 2023) shall be set off under sub-rule (1) or, as the
case may be, sub-rule (2).".
CHAPTER III
DIRECT TAXES
Income-tax
3. In section 10 of the Income-tax Act, - Amendment of
section 10.
(a) in clause (4D), in the Explanation,-
(i) in clause (aa), for the figures "2024", the figures "2025" shall be
substituted;
(ii) in clause (c), in sub-clause (ii), in item (I), for the figures "2024", the
figures "2025" shall be substituted;
(b) in clause (4F), for the figures "2024", the figures "2025" shall be substituted;
(c) in clause (23FE), in sub-clause (i), for the figures "2024", the figures "2025"
shall be substituted.
4. In section 80-IAC of the Income-tax Act, in the Explanation, in clause (ii), in Amendment of
sub-clause (a), for the figures "2024", the figures "2025" shall be substituted. section 80-IAC.
5. In section 80LA of the Income-tax Act, in sub-section (2), in clause (d), for the Amendment of
figures "2024", the figures "2025" shall be substituted. section 80LA.
6. In section 92CA of the Income-tax Act, in sub-section (9), in the proviso, for the Amendment of
figures "2024", the figures "2025" shall be substituted. section 92CA.
7. In section 144C of the Income-tax Act, in sub-section (14C), in the proviso, for the Amendment of
figures "2024", the figures "2025" shall be substituted. section 144C.
8. In section 206C of the Income-tax Act, in sub-section (1G),-— Amendment of
section 206C.
(a) in the long line, for the word "twenty", the word "five" shall be substituted
and shall be deemed to have been substituted with effect from the 1st day of July,
2023;
(b) in the first proviso, the words "and is for the purposes of education or
medical treatment" shall be omitted and shall be deemed to have been omitted with
effect from the 1st day of July, 2023;
(c) in the second proviso, with effect from the 1st day of October, 2023,--
(i) for the word "five", the word "twenty" shall be substituted and shall
be deemed to have been substituted;
(ii) for the words "is for the purposes of", the words "is for purposes
other than" shall be substituted and shall be deemed to have been substituted;
(d) after the third proviso, the following proviso shall be inserted and shall be
deemed to have been inserted with effect from the 1st day of October, 2023, namely:-
"Provided also that the seller of an overseas tour programme package
shall collect a sum of twenty per cent. of the amount or aggregate of amounts in
excess of seven lakh rupees received from the buyer in a financial year:";
(e) after the fifth proviso, the following proviso shall be inserted and shall be
deemed to have been inserted with effect from the 1st day of July, 2023, namely:--
"Provided also that the sum to be collected under this sub-section on or after the
1st day of July, 2023 and before the 1st day of October, 2023, shall be collected in accordance
with the provisions of this sub-section as they stood on the 1st day of April, 2023.".
9. In section 253 of the Income-tax Act, in sub-section (9), in the proviso, for the Amendment of
figures "2024", the figures "2025" shall be substituted. section 253.
10. In section 255 of the Income-tax Act, in sub-section (8), in the proviso, for the Amendment of
figures "2024", the figures "2025" shall be substituted. section 255.
CHAPTER IV
INDIRECT TAXES
Central Goods and Services Tax
11. In the Central Goods and Services Tax Act, 2017 (12 of 2017.) (hereinafter referred to as the Amendment of
Central Goods and Services Tax Act), in section 2, for clause (61), the following clause shall section 2.
be substituted, namely:-
'(61) "Input Service Distributor" means an office of the supplier of goods or
services or both which receives tax invoices towards the receipt of input services,
including invoices in respect of services liable to tax under sub-section (3) or sub-
section (4) of section 9, for or on behalf of distinct persons referred to in section 25,
and liable to distribute the input tax credit in respect of such invoices in the manner
provided in section 20;'.
12. For section 20 of the Central Goods and Services Tax Act, the following section Substitution of
shall be substituted, namely: section 20.
"20. (1) Any office of the supplier of goods or services or both which receives
tax invoices towards the receipt of input services, including invoices in respect of
services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on
behalf of distinct persons referred to in section 25, shall be required to be registered
as Input Service Distributor under clause (viii) of section 24 and shall distribute the
input tax credit in respect of such invoices. Manner of
distribution of
credit by Input
Service
Distributor.
(2) The Input Service Distributor shall distribute the credit of central tax or integrated
tax charged on invoices received by him, including the credit of central or integrated tax in
respect of services subject to levy of tax under sub-section (3) or sub-section (4) of
section 9 paid by a distinct person registered in the same State as the said Input Service
Distributor, in such manner, within such time and subject to such restrictions and conditions
as may be prescribed.
(3) The credit of central tax shall be distributed as central tax or integrated tax and
integrated tax as integrated tax or central tax, by way of issue of a document containing the
amount of input tax credit, in such manner as may be prescribed.".
13. After section 122 of the Central Goods and Services Tax Act, the following section Insertion of new
shall be inserted, namely:- section 122A.
"122A. (1) Notwithstanding anything contained in this Act, where any person,
who is engaged in the manufacture of goods in respect of which any special procedure
relating to registration of machines has been notified under section 148, acts in
contravention of the said special procedure, he shall, in addition to any penalty that
is paid or is payable by him under Chapter XV or any other provisions of this Chapter,
be liable to pay a penalty equal to an amount of one lakh rupees for every machine not
so registered. Penalty for
failure to
register certain
machines used
in manufacture
of goods as per
special
procedure.
(2) In addition to the penalty under sub-section (1), every machine not so
registered shall be liable for seizure and confiscation:
Provided that such machine shall not be confiscated where--
(a) the penalty so imposed is paid, and
(b) the registration of such machine is made in accordance with the special
procedure within three days of the receipt of communication of the order of
penalty.".
STATEMENT OF OBJECTS AND REASONS
The object of the Bill is to continue the existing rates of income-tax for the financial
year 2024-2025 and to give effect to certain financial proposals of the Central Government
for the financial year 2024-2025.
NIRMALA SITHARAMAN.
NEW DELHI;
The 31st January, 2024.
PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117 AND 274
OF THE CONSTITUTION OF INDIA
[Copy of letter No. 2(6)-B(D)2024, dated the 31st January, 2024 from Smt. Nirmala
Sitharaman, Minister of Finance, to the Secretary-General, Lok Sabha].
The President, having been informed of the subject matter of the proposed Bill,
recommends under clauses (1) and (3) of article 117, read with clause (1) of article 274, of the
Constitution of India, the introduction of the Finance Bill, 2024 to the Lok Sabha and also
recommends to the Lok Sabha the consideration of the Bill.
2. The Bill will be introduced in the Lok Sabha immediately after the presentation of
the Budget on the 1st February, 2024.
UTPAL KUMAR SINGH
Secretary-General
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI-110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI-110054.
MGIPMRND-640GI(S3)-01-02-2024.
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