H. RATIONALISATION OF OTHER DIRECT TAX PROVISIONS Rationalisation of TCS rates Section 394(1) of the Act provides multiple rates for collection of tax at source (TCS). It is proposed to rationalize the rates of TCS by providing uniform rates to the extent possible. It is also proposed to reduce some of the rates so as… Read More »
G. RATIONALISATION OF CORPORATE TAX REGIME Rationalization of Minimum Alternate Tax provisions The existing provisions under section 206 of the Income-tax Act, 2025 (the Act) provide for Minimum Alternate Tax (MAT) which is applicable for companies. This tax is charged on the Book profit of the assessee at the rate of 15% for corporates (other… Read More »
Rationalisation of certain terms for treasury centres in IFSC Exiting Clause (40) of the section 2 inter alia provides the definition of dividend. Sub clause (v) to long line of clause (40) provides that dividend does not include any advance or loan between two group entities, where, __ (A) one of the group entities is… Read More »
Extension of period of deduction for units in IFSC and rationalization of tax rate The provisions of section 147 provide for deduction of 100% on certain incomes to the units of IFSC and OBUs. This is available for 10 consecutive years out of 15 years for units in IFSC and 10 consecutive years for OBUs.… Read More »
Exemption to non-residents for rendering services under a notified Scheme in India. The existing provisions of section 11 read with Schedule IV of the Act specifies the eligible income, which shall not be included in the total income of the eligible non-residents, foreign companies and other such persons. 2. In order to provide tax certainty… Read More »
Exclusion of specified business of Non-residents which are under presumptive taxation from the applicability of Minimum Alternate Tax Certain foreign companies are excluded from the application of Minimum Alternate Tax (MAT) under the present provisions. The income of non-residents derived from certain business who opt for presumptive rate of taxation under section 61 of the… Read More »
Exemption to a foreign company on income arising on account of providing capital equipment etc. to an electronic goods manufacturer located in a custom bonded area The existing provisions of section 11 read with Schedule IV of the Income-tax Act specifies the eligible income, which shall not be included in the total income of the… Read More »
Allowing expenditure on prospecting of critical minerals as deduction Section 51 of the Act provides for tax deductibility of expenses incurred by an Indian company or resident taxpayers (other than companies) engaged in any operations relating to prospecting or extraction or production of the minerals mentioned in Part A and Part B of the Schedule… Read More »
F. ATTRACTING GLOBAL BUSINESS AND INVESTMENT Exemption to a foreign company on any income arising in India by way of procuring data centre services from a specified data centre. The existing provisions of section 11 read with Schedule IV of the Act specifies the eligible income, which shall not be included in the total income… Read More »
E. SUPPORTING IT SECTOR AS INDIA’S GROWTH ENGINE Amendment of section 169 of the Income-tax Act, 2025 relating to providing effect to advance pricing agreements The existing provisions of section 168(1) allow filing of a modified return of income only by the person who has entered into advance pricing agreement (APA) with the Board. The… Read More »