This article is an overview of the Finance (No. 2) Act 2024 that outlines the major highlights and the potential impacts that it can have on your businesses and taxpayers at large.
The Finance (No. 2) Act, 2024, introduced by Finance Minister Nirmala Sitharaman, was passed on August 16, 2024. This Act brings significant changes to India’s tax and financial landscape, aiming to boost economic growth, simplify compliance, and provide relief to taxpayers. Here’s a brief look at its key aspects and impacts:
The Finance (No. 2) Act, 2024: Key Highlights and Implications
Income Tax Reforms:
- Revised tax slabs and increased exemptions to provide relief to individual taxpayers.
- Simplified filing processes and reduced penalties for minor errors.
Corporate Tax and Business Incentives:
- Adjusted corporate tax rates, particularly benefiting new manufacturing companies.
- Sector-specific incentives and enhanced deductions for R&D activities.
GST and Indirect Taxes:
- Adjusted GST rates and streamlined compliance requirements.
- Enhanced measures to combat GST evasion.
Support for Startups and MSMEs:
- Tax holidays, reduced compliance burdens, and new credit schemes for MSMEs.
- Incentives for adopting digital and innovative technologies.
Green Initiatives and Sustainable Finance:
- Tax incentives for renewable energy investments and sustainable projects.
- Introduction of green bonds and support for electric vehicles.
Compliance and Enforcement:
- Stricter penalties for tax evasion and enhanced reporting for high-value transactions.
Digital Economy and Cryptocurrencies:
- Regulatory framework for cryptocurrencies and tax guidelines for digital assets.
- Incentives for the fintech sector and digital transactions.
Finance (No. 2) Act – Conclusion
The Finance (No. 2) Act, 2024, aims to modernize India’s tax framework, support sustainable growth, and promote digital innovation. By understanding these changes, individuals and businesses can better navigate the evolving financial landscape and seize new opportunities for growth.
Get in touch with Pitchers Global as we help empower businesses to thrive in India’s tax landscape with our expert guidance and strategic insights.