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
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