25 Jul 2024
1 |
Angel tax abolished |
 |
2 |
Capital gains tax regime overhauled |
 |
3 |
Clarification to the definition of specified mutual funds |
|
4 |
Revamping buyback taxation: new rules ahead |
 |
5 |
Corporate gifts no longer tax-free |
|
6 |
Beneficial tax rate for non-resident investors |
|
7 |
Relaxation in thin capitalisation norms |
|
8 |
Incentive for venture capital funds and venture capital companies in IFSC |
|
9 |
Introduction of amnesty scheme |
|
10 |
Higher trading taxes on futures and options |
|
11 |
Certain income of Core Settlement Guarantee Funds set up by recognised clearing corporations in IFSC exempted from tax net |
|
12 |
Equalisation levy on e-commerce transactions abolished |
|
Partners: Komal Dani, Samsuddha Majumder, Counsel: Rohit Kumar S, Senior Associates: Aishwarya Palan, Deepanshu Jhanwar, Yash Varmani, Associates: Anjani Kumar, DR Shashank, Harshita Nahata and Utkarsh Mittal
On 23 July 2024, the Finance Bill 2024 (Bill) was introduced proposing sweeping changes to the Income Tax Act, 1961 (Act), with an aim to transform the tax landscape in India by simplifying tax regulations, enhancing taxpayer services, and fostering economic growth.
From a mergers and acquisitions perspective, the Bill proposes to streamline the capital gains tax regime through rationalisation of the holding periods for assets and adjustment in capital gains tax rates. These changes are intended to simplify the tax process and make capital gains more predictable and transparent especially for non-residents.
To address a long-standing concern for unregistered startups and investors, the Bill seeks to abolish the angel tax provisions. It also proposes to revise the taxation of corporate gifts and buyback of shares. These amendments reflect a broader strategy to create a more transparent and efficient tax environment.
In order to promote the development of world-class financial infrastructure in India, several tax concessions have been provided under the Act to units located in International Financial Services Centre (IFSC). The Bill has now proposed an exemption to retail funds and exchange traded funds (ETF) set up in IFSC.
Overall, the Bill is a positive step towards encouraging investment, reducing litigation, and supporting economic development in India.
This update highlights key proposals under the Bill impacting non-resident investors investing in India.
International Trade Quarterly Milestones (January-March 2026)
17 Apr 2026
Revisiting minimum public shareholding and minimum public offer requirements: The SCRR Amendments, 2026
15 Apr 2026Competition Quarterly Milestones (January-March 2026)
15 Apr 2026If you would like to receive content directly in your inbox from our knowledge repository, please complete this subscription form. This service is reserved for clients and eligible contacts.
Under the rules of the Bar Council of India, Trilegal is prohibited from soliciting work or advertising in any form or manner. By accessing this website, www.trilegal.com, you acknowledge that:
We prioritize your privacy. Before proceeding, we encourage you to read our privacy policy, which outlines the below, and terms of use to understand how we handle your data:
For more information, please read our terms of use and our privacy policy.
