Tax Tips : Implications of Finance Act amendments
Q. What are the key amendments in the Finance (No.2) Bill, 2024 (now Finance Act, 2024) made in the Budget this year? ms ahluwalia, kharar
A. The Finance (No. 2) Bill, 2024 was presented by the Finance Minister on July 23, 2024, and on August 7, 2024, the Lok Sabha passed the Bill with certain amendments. The Finance (No. 2) Bill, 2024 received the President’s assent on August 16, 2024. The notable amendments (in direct tax) to the Finance (No. 2) Bill, 2024 as finally assented by the President allows the taxpayer a flexibility to choose an option where the tax liability is lower.
It is pertinent to note that the law allows for the taxpayer to choose and only reduce the tax liability under either of the options and does not allow for an option to reduce the income (avail loss) under the head capital gains on sale of immovable property purchased prior to July 23, 2024, and sold post the said date.
While the benefit of the amendment in respect to taxation of long-term capital gains in case of immovable property has not been made available to non-residents, partnership firms/ LLPs or companies, it is a welcome move and provides relief to the individuals/HUFs.
