BUDGET SPEECH OF FM-2024

SELECTIVE EXTRACTION-PART:3/3

EXTRACTED BY: SARASIJ MAJUMDER

 

CONTINUED AFTER PART-2/3-- CONCLUDED ( IMPORTANT)

INDIRECT TAXES

I start with GST. It has decreased tax incidence on the common man; reduced compliance burden and logistics cost for trade and industry.

My proposals for customs duties intend to support domestic manufacturing, deepen local value addition, promote export competitiveness, and simplify taxation, while keeping the interest of the general public and consumers surmount.

To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties. 120. I also propose changes in the BCD on x-ray tubes & flat panel detectors for use in medical x-ray machines.

I now propose to reduce the BCD on mobile phone, mobile PCBA and mobile charger to 15 per cent.

I propose to fully exempt CD on 25 critical minerals and reduce BCD on two of them.

To support energy transition, I propose to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. I propose not to extend the exemption of customs duties provided to solar glass and tinned copper interconnect.

I propose to reduce BCD on certain broodstock, polychaete worms, shrimp and fish feed to 5 per cent. I also propose to exempt customs duty on various inputs for manufacture of shrimp and fish feed.

I propose to reduce BCD on real down filling material from duck or goose. I am also making additions to the list of exempted goods for manufacture of leather and textile garments, footwear and other leather articles for export.

To rectify inversion in duty, I propose to reduce BCD, subject to conditions, on methylene diphenyl diisocyanate (MDI) for manufacture of spandex yarn from 7.5 to 5 per cent.

I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent.

I propose to remove the BCD on ferro nickel and blister copper. I am also continuing with nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5 per cent on copper scrap.

I propose to remove the BCD, subject to conditions, on oxygen free copper for manufacture of resistors. I also propose to exempt certain parts for manufacture of connectors.

I propose to increase the BCD on ammonium nitrate from 7.5 to 10 per cent.

PVC flex banners are non-biodegradable and hazardous for environment and health. To curb their imports, I propose to raise the BCD on them from 10 to 25 per cent.

To incentivise domestic manufacturing, I propose to increase the BCD from 10 to 15 per cent on PCBA of specified telecom equipment.

To promote domestic aviation and boat & ship MRO, I propose to extend the period for export of goods imported for repairs from six months to one year. In the same vein, I propose to extend the time-limit for re-import of goods for repairs under warranty from three to five years.

DIRECT TAXES

The two tax exemption regimes for charities are proposed to be merged into one. The 5 per cent TDS rate on many payments is being merged into the 2 per cent TDS rate and the 20 per cent TDS rate on repurchase of units by mutual funds or UTI is being withdrawn. TDS rate on e-commerce operators is proposed to be reduced from one to 0.1 per cent. Credit of TCS is proposed to be given in the TDS to be deducted on salary.

An assessment hereinafter can be reopened beyond three years from the end of the assessment year only if the escaped income is ₹ 50 lakh or more, up to a maximum period of five years from the end of the assessment year. Even in search cases, a time limit of six years before the year of search, as against the existing time limit of ten years, is proposed.

Short term gains on certain financial assets shall henceforth attract a tax rate of 20 per cent, while that on all other financial assets and all non-financial assets shall continue to attract the applicable tax rate.

Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, I propose to increase the limit of exemption of capital gains on certain financial assets to ₹ 1.25 lakh per year.

Listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term.

Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates.

For resolution of certain income tax disputes pending in appeal, I am also proposing Vivad Se Vishwas Scheme, 2024.

I propose to abolish the so called angel tax for all classes of investors. I am proposing a simpler tax regime for foreign shipping companies operating domestic cruises in the country.

To further promote the development of Diamond Cutting  sector, we would provide for safe harbour rates for foreign mining companies selling raw diamonds in the country.

To attract foreign capital for our development needs, I propose to reduce the corporate tax rate on foreign companies from 40 to 35 per cent.

Security Transactions Tax on futures and options of securities is proposed to be increased to 0.02 per cent and 0.1 per cent respectively. For reasons of equity, I propose to tax income received on buy back of shares in the hands of the recipient.

To improve social security benefits, deduction of expenditure by employers towards NPS is proposed to be increased from 10 to 14 per cent of the employee’s salary. Similarly, deduction of this expenditure up to 14 per cent of salary from the income of employees in private sector, public sector banks and undertakings, opting for the new tax regime, is proposed to be provided.

Non-reporting of movable assets up to ₹ 20 lakh abroad is proposed to be de-penalised.

Other major proposals in the Finance Bill relate to: • Withdrawal of equalization levy of 2 per cent; • Expansion of tax benefits to certain funds and entities in IFSCs; and • immunity from penalty and prosecution to benamidar on full and true disclosure so as to improve conviction under the Benami Transactions (Prohibition) Act, 1988.

Personal Income Tax:-- See the Table Below:

 

As a result of these proposals, revenue of about ₹ 37,000 crore : – ₹ 29,000 crore in direct taxes and ₹ 8,000 crore in indirect taxes – will be forgone while revenue of about ₹ 30,000 crore rupees will be additionally mobilized. Thus, the total revenue forgone is about ₹ 7,000 crore annually.

Mr. Speaker Sir, with this, I commend the budget to this august House.

Jai Hind.

(EXTRACT FROM  SPEECH BY FM ON BUDGET PRESENTATION IN PARLIAMENT)

URL Of previous post for reference, and study:- https://sarasij1majumder.blogspot.com/2024/07/budget-speech-of-fm-2024-selective.html