Finance Acts

Substitution of new section for section 151  For section 151 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of September, 2024, namely:— “151. Sanction for issue of notice. – Specified authority for the purposes of sections 148 and 148A shall be the Additional Commissioner or the Additional Director or the Joint Commissioner or the Joint Director, as the case may be.”.

Substitution of new section for section 149 For section 149 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of September, 2024, namely:— “149. Time limit for notices under sections 148 and 148A. – (1) No notice under section 148 shall be issued for the relevant assessment year,— (a)   if three years and three months have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b)   if three years and three months, but not more than five years and three months, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence related to any asset or expenditure or transaction or entries which show that the income chargeable to tax, which has escaped assessment, amounts to or is likely to amount to fifty lakh rupees or more. (2) No notice to show cause under section 148A shall be issued for the relevant assessment year,— (a)   if three years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b)   if three years, but not more than five years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment, as per the information with the Assessing Officer, amounts to or is likely to amount to fifty lakh rupees or more.

Substitution of new sections for sections 148 and 148A For sections 148 and 148A of the Income-tax Act, the following sections shall be substituted with effect from the 1st day of September, 2024, namely:— ‘148. Issue of notice where income has escaped assessment.— (1) Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall, subject to the provisions of section 148A, issue a notice to the assessee, along with a copy of the order passed under sub-section (3) of section 148A, requiring him to furnish, within such period as may be specified in the notice, not exceeding three months from the end of the month in which such notice is issued, a return of his income or income of any other person in respect of whom he is assessable under this Act during the previous year corresponding to the relevant assessment year: Provided that no notice under this section shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year: Provided further that where the Assessing Officer has received information under the scheme notified under section 135A, no notice under this section shall be issued without prior approval of the specified authority. (2) The return of income required under sub-section (1) shall be furnished in such form and verified in such manner and setting forth such other particulars, as may be prescribed, and the provisions of this Act shall, apply accordingly as if such return were a return required to be furnished under section 139: Provided that any return of income required under sub-section (1), furnished after the expiry of the period specified in the notice under the said sub-section, shall not be deemed to be a return under section 139. (3) For the purposes of this section and section 148A, the information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment means,— (i)   any information in the case of the assessee for the relevant assessment year in accordance with the risk management strategy formulated by the Board from time to time; or (ii)   any audit objection to the effect that the assessment in the case of the assessee for the relevant assessment year has not been made in accordance with the provisions of this Act; or (iii)   any information received under an agreement referred to in section 90 or section 90A of the Act; or (iv)   any information made available to the Assessing Officer under the scheme notified under section 135A; or (v)   any information which requires action in consequence of the order of a Tribunal or a Court; or (vi)   any information in the case of the assessee emanating from survey conducted under section 133A, other than under sub-section (2A) of the said section, on or after the 1st day of September, 2024. 148A. Procedure before issuance of notice under section 148 – (1) Where the Assessing Officer has information which suggests that income chargeable to tax has escaped assessment in the case of an assessee for the relevant assessment year, he shall, before issuing any notice under section 148 provide an opportunity of being heard to such assessee by serving upon him a notice to show cause as to why a notice under section 148 should not be issued in his case and such notice to show cause shall be accompanied by the information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year. (2) On receipt of the notice under sub-section (1), the assessee may furnish his reply within such period, as may be specified in the notice. (3) The Assessing Officer shall, on the basis of material available on record and taking into account the reply of the assessee furnished under sub-section (2), if any, pass an order with the prior approval of the specified authority determining whether or not it is a fit case to issue notice under section 148. (4) The provisions of this section shall not apply to income chargeable to tax escaping assessment for any assessment year in the case of an assessee where the Assessing Officer has received information under the scheme notified under section 135A. Explanation.— For the purposes of this section and section 148, “specified authority” means the specified authority referred to in section 151.’.

Amendment of section 144C In section 144C of the Income-tax Act with effect from the 1st day of September, 2024,— (i)   in sub-section (15), in clause (b), the following proviso shall be inserted, namely:—     “Provided that such eligible assessee shall not include person referred to in sub-section (1) of section 158BA or other person referred to in section 158BD.”; (ii)   after sub-section (15), the following sub-section shall be inserted, namely:—     “(16) The provisions of this section shall not apply to any proceedings under Chapter XIV-B.”.

Amendment of section 139AA In section 139AA of the Income-tax Act, with effect from the 1st day of October, 2024,— (a) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:— “Provided further that nothing in the first proviso shall apply in respect of any application form for allotment of permanent account number or return of income furnished on or after the 1st day of October, 2024.”; (b) after sub-section (2), the following sub-section shall be inserted, namely:— “(2A) Every person who has been allotted permanent account number on the basis of Enrolment ID of Aadhaar application form filed prior to the 1st day of October, 2024, shall intimate his Aadhaar number to such authority in such form and manner, as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette.”.

Amendment of section 132B In section 132B of the Income-tax Act, in sub-section (1), in clause (i), for the words and figures “and the Interest-tax Act, 1974”, the words, brackets and figures “the Interest-tax Act, 1974 (45 of 1974) and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015)” shall be substituted with effect from the 1st day of October, 2024.

Amendment of section 115QA In section 115QA of the Income-tax Act, in sub-section (1), after the proviso and before the Explanation, the following proviso shall be inserted with effect from the 1st day of October, 2024, namely:— “Provided further that the provisions of this sub-section shall not apply in respect of any buy-back of shares, that takes place on or after the 1st day of October, 2024.”.

Amendment of section 115E In section 115E of the Income-tax Act, in the long line, for clause (ii), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 23rd day of July, 2024, namely:— “(ii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause (b), if any, included in the total income,— (A)   at the rate of ten per cent for any transfer which takes place before the 23rd day of July, 2024; and (B)   at the rate of twelve and one-half per cent for any transfer which takes place on or after the 23rd day of July, 2024; and”

Amendment of section 115BAC  In section 115BAC of the Income-tax Act, for sub-section (1A), the following sub-section shall be substituted with effect from the 1st day of April, 2025, namely:— “(1A) Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, the income-tax payable in respect of the total income of a person, being an individual or Hindu undivided family or association of persons (other than a co-operative society), 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, other than a person who has exercised an option under sub-section (6),— (i)   for any previous year relevant to the assessment year beginning on the 1st day of April, 2024, shall be computed at the rate of tax given in the following Table, namely:— TABLE Sl. No. Total income Rate of tax (1) (2) (3) 1. Upto Rs. 3,00,000 Nil 2. From Rs. 3,00,001 to Rs. 6,00,000 5 per cent 3. From Rs. 6,00,001 to Rs. 9,00,000 10 per cent 4. From Rs. 9,00,001 to Rs. 12,00,000 15 per cent 5. From Rs. 12,00,001 to Rs. 15,00,000 20 per cent 6. Above Rs. 15,00,000 30 per cent; (ii)   for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2025, shall be computed at the rate of tax given in the following Table, namely:— TABLE Sl. No. Total income Rate of tax (1) (2) (3) 1. Upto Rs. 3,00,000 Nil 2. From Rs. 3,00,001 to Rs. 7,00,000 5 per cent 3. From Rs. 7,00,001 to Rs. 10,00,000 10 per cent 4. From Rs. 10,00,001 to Rs. 12,00,000 15 per cent 5. From Rs. 12,00,001 to Rs. 15,00,000 20 per cent 6. Above Rs. 15,00,000 30 per cent”.

Amendment of section 115AD In section 115AD of the Income-tax Act, in sub-section (1), with effect from the 23rd day of July, 2024,— (a)   in the longline, in clause (ii), for the proviso, the following proviso shall be substituted and shall be deemed to have been substituted, namely:—     “Provided that the amount of income-tax calculated on the income by way of short-term capital gains referred to in section 111A shall be at the rate of— (A)   fifteen per cent for any transfer which takes place before the 23rd day of July, 2024; and (B)   twenty per cent for any transfer which takes place on or after the 23rd day of July, 2024;”; (b)   in clause (iii), for the proviso, the following provisos shall be substituted and shall be deemed to have been substituted, namely:—     “Provided that in case of income arising from the transfer of a long-term capital asset referred to in section 112A which exceeds one lakh and twenty-five thousand rupees, income-tax shall be calculated at the rate of— (A)   ten per cent where transfer of such asset takes place before the 23rd day of July, 2024; and (B)   twelve and one-half per cent where transfer of such asset takes place on or after the 23rd day of July, 2024:     Provided further that the limit of one lakh twenty-five thousand rupees mentioned in the first proviso shall apply on aggregate of the long-term capital gains referred to in clauses (A) and (B); and”.