The Finance Bill 2024, a pivotal piece of legislation, is set to reshape the economic landscape. This comprehensive analysis delves into the intricacies of the bill, exploring its key provisions, potential impacts on various sectors and the broader implications for the nation's financial health.
Official copy of the Finance Bill 2024 is as follows
AS INTRODUCED IN LOK SABHA
ON 1ST FEBRUARY, 2024
Bill No.14 of 2024
THE FINANCE BILL, 2024
A
BILL
to continue the existing rates of income-tax for the financial year 2024-2025 and to provide for certain relief to taxpayers and to make amendments in certain enactments. BE it enacted by Parliament in the Seventy-fifth Year of the Republic of India as follows:-
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Finance Act, 2024. Short title and commencement.
(2) Save as otherwise provided in this Act,- -
(a) sections 2 to 10 shall come into force on the 1st day of April, 2024;
(b) sections 11 to 13 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
CHAPTER II
RATES OF INCOME-TAX
2. The provisions of section 2 of, and the First Schedule to, the Finance Act, 2023, shall apply in relation to incometax for the assessment year or, as the case may be, the financial year commencing on the 1st day of April, 2024, as they apply in relation to income-tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of April, 2023, with the following modifications, namely:-
(a) in section 2,- -
(i) in sub-section (1), for the figures “2023”, the figures “2024” shall be substituted;
(ii) for sub-section (2), the following sub-section shall be substituted, namely:- - .
‘(2) In the cases to which Paragraph A of Part I of the First Schedule applies, or in the cases where income is chargeable to tax under subsection (1A) of section 115BAC of the Income-tax Act, 1961 (hereinafter referred to as the Incometax Act), and where the assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds two lakh fifty thousand rupees, then,—
(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) (that is to say, as if the net agricultural income were comprised in the total income after the first two lakh fifty thousand rupees of the total income but without being liable to tax), only for the purpose of charging income-tax in respect of the total income; and
(b) the income-tax chargeable shall be computed as follows:
(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A or sub-section (1A) of section 115BAC, as if such aggregate income were the total income;
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