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Taxation Central Ministry of Finance Income Tax Act, 1961

Amendment Income Tax Act vide the Finance (No. 2) Act, 2024

16-Aug-2024 | 15 of 2024

Ministry of Finance has issued the Finance (No. 2) Act, 2024 with the following key amendments:

a. Revision in Income tax Rates for Companies: In the case of a company other than a domestic company, the rate of tax has been reduced from 40% to 35%, on income, other than income chargeable at special rates specified in sections 110 to 115 of the Act. (Effective from AY 2025-26).

b. Tax incentives to International Financial Services Centre (IFSC)

c. Taxability of consideration received from a resident for issue of shares exceeding face value

d. Revision of rates of securities transaction tax: the rate of STT has been increased on sale of an option in securities from 0.0625 per cent to 0.1 per cent of the option premium, and on sale of a futures in securities from 0.0125 per cent to 0.02 per cent of the price at which such futures are traded.

e. Amendment of Section 55 regarding cost of acquisition for sale of unlisted equity shares under offer for sale in IPO

(Note: Please refer to the official notification for specific effective dates for different sections.)

For detailed information, please refer to the attached document.

Upgrade to paid version to access the Notification, Circular & Rules along with the checklist

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