Finance Acts

Amendment of section 48 In section 48 of the Income-tax Act, in the second proviso, after the words “where long-term capital gain arises from the transfer”, the brackets, words, figures and letters “(which takes place before the 23rd day of July, 2024)” shall be inserted and shall be deemed to have been inserted with effect from the 23rd day of July, 2024.

Amendment of section 47 In section 47 of the Income-tax Act, for clause (iii), the following clause shall be substituted with effect from the 1st day of April, 2025, namely:— “(iii) any transfer of a capital asset by an individual or a Hindu undivided family, under a gift or will or an irrevocable trust;”.

Amendment of section 46A  In section 46A of the Income-tax Act, the following proviso shall be inserted before the Explanation, with effect from the 1st day of October, 2024, namely:— “Provided that where the shareholder receives any consideration of the nature referred to in sub-clause (f) of clause (22) of section 2 from any company, in respect of any buy-back of shares, that takes place on or after the 1st day of October, 2024, then for the purposes of this section, the value of consideration received by the shareholder shall be deemed to be nil.”.

Insertion of new section 44BBC After section 44BBB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2025, namely:— ’44BBC. Special provision for computing profits and gains of business of operation of cruise ships in case of non-residents – (1) Notwithstanding anything to the contrary contained in sections 28 to 43A, in the case of an assessee, being a non-resident, engaged in the business of operation of cruise ships subject to such conditions as may be prescribed, a sum equal to twenty per cent of the aggregate of the amounts specified in sub-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head “Profits and gains of business or profession”. (2) The amounts referred to in sub-section (1) shall be the following, namely:— (a)   the amount paid or payable to the assessee or to any person on his behalf on account of the carriage of passengers; and (b)   the amount received or deemed to be received by or on behalf of the assessee on account of the carriage of passengers.’.

Amendment of section 44B In section 44B of the Income-tax Act, with effect from the 1st day of April, 2025,— (a)   for the marginal heading, the following marginal heading shall be substituted, namely:—     “Special provision for computing profits and gains of shipping business other than cruise shipping in case of non-residents.”; (b)   in sub-section (1), after the words “business of operation of ships,”, the words, figures and letters “other than cruise ships referred to in section 44BBC,” shall be inserted.

Amendment of section 43D In section 43D of the Income-tax Act, with effect from the 1st day of April, 2025,— (i)   in the marginal heading, the words “public companies,” shall be omitted; (ii)   clause (b) shall be omitted; (iii)   in the long line, the words “or the public company” shall be omitted; (iv)   in the Explanation, clauses (a) and (b) shall be omitted.

Amendment of section 40 In section 40 of the Income-tax Act, in clause (b), in sub-clause (v), in item (a), with effect from the 1st day of April, 2025,— (a)   for the letters and figures “Rs. 3,00,000”, the letters and figures “Rs. 6,00,000” shall be substituted; (b)   for the letters and figures “Rs. 1,50,000”, the letters and figures “Rs. 3,00,000” shall be substituted.

Amendment of section 37 In section 37 of the Income-tax Act, in sub-section (1), in Explanation 3, in clause (iii), for the words “outside India.”, the following shall be substituted with effect from the 1st day of April, 2025, namely:— “outside India; or (iv) to settle proceedings initiated in relation to contravention under such law as may be notified by the Central Government in the Official Gazette in this behalf.”.

Amendment of section 36 In section 36 of the Income-tax Act, in sub-section (1), in clause (iva), for the words “ten per cent”, the words “fourteen per cent” shall be substituted with effect from the 1st day of April, 2025.

Amendment of section 28 In section 28 of the Income-tax Act, after Explanation 2, the following Explanation shall be inserted with effect from the 1st day of April, 2025, namely:— ‘Explanation 3.— It is hereby clarified that any income from letting out of a residential house or a part of the house by the owner shall not be chargeable under the head “Profits and gains of business or profession” and shall be chargeable under the head “Income from house property”.’.