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Taxation Central Ministry of Finance Income Tax Act, 1961

Issuance of Finance (No 2) Act, 2024

16-Aug-2024 | 15 of 2024

Ministry of Finance has issued the Finance (No. 2) Act, 2024, effective from 1st April 2024, to implement the Central Government's financial proposals for the financial year 2024-25.

Key highlights include:

a) In the case of every firm or local authority, a surcharge of 12% on income tax where the total income exceeds one crore rupees.
b) For domestic companies, except those taxed under sections 115BAA or 115BAB of the Income-tax Act:
(i) 7% surcharge on income tax where the total income exceeds one crore rupees but does not exceed ten crore rupees.
(ii) 12% surcharge on income tax where the total income exceeds ten crore rupees.
c) For companies other than domestic companies:
(i) 2% surcharge on income tax where the total income exceeds one crore rupees but does not exceed ten crore rupees.
(ii) 5% surcharge on income tax where the total income exceeds ten crore rupees.
d) For buy-backs of shares occurring on or after 1st October 2024, the consideration received by shareholders as referred to in sub-clause (f) of clause (22) of section 2 will be deemed nil for the purposes of section 46A.

Note: Sections 114 to 157 of the Act will come into force on a date to be notified by the Central Government in the Official Gazette.

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