THE FINANCE ACT, 2024

No. 8 OF 2024

15th February, 2024

An Act 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.

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S.1 Short title and commencement

(1) This Act may be called the Finance Act, 2024.

(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.

S.2 Income-tax

The provisions of section 2 of, and the First Schedule to, the Finance Act, 2023, shall 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, 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 sub-section (1A) of section 115BAC of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act), and where the assessee has, in the previous year, any net agricultural income exceeding five thou

S.3 Amendment of section 10

In section 10 of the Income-tax Act,

• (a) in clause (4D), in the Explanation,
• (i) in clause (aa), for the figures “2024”, the figures “2025” shall be substituted;
• (ii) in clause (c), in sub-clause (ii), in item (l), for the figures “2024”, the figures “2025” shall be substituted;
• (b) in clause (4F), for the figures “2024”, the figures “2025” shall be substituted;
• (c) in clause (23FE), in sub-clause (i), for the figures “2024”, the figures “2025” shall be substituted.

S.4 Amendment of section 80-IAC

In section 80-IAC of the Income-tax Act, in the Explanation, in clause (ii), in sub-clause (a), for the figures “2024”, the figures “2025” shall be substituted.

S.5 Amendment of section 80LA

In section 80LA of the Income-tax Act, in sub-section (2), in clause (d), for the figures “2024”, the figures “2025” shall be substituted.

S.6 Amendment of section 92CA

In section 92CA of the Income-tax Act, in sub-section (9), in the proviso, for the figures “2024”, the figures “2025” shall be substituted.

S.7 Amendment of section 144C

In section 144C of the Income-tax Act, in sub-section (14C), in the proviso, for the figures “2024”, the figures “2025” shall be substituted.

S.8 Amendment of section 206C

In section 206C of the Income-tax Act, in sub-section (1G),—

• (a) in the long line, for the word “twenty”, the word “five” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2023;
• (b) in the first proviso, the words “and is for the purposes of education or medical treatment” shall be omitted and shall be deemed to have been omitted with effect from the 1st day of July, 2023;
• (c) in the second proviso, with effect from the 1st day of October, 2023,—
• (i) for the word “five”, the word “twenty” shall be substituted and shall be deemed to have been substituted;
• (ii) for the words “is for the purposes of”, the words “is for purposes other than” shall be substituted and shall be deemed to have been substituted;
• (d) after the third proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, 2023, name
  

S.9 Amendment of section 253

In section 253 of the Income-tax Act, in sub-section (9), in the proviso, for the figures “2024”, the figures “2025” shall be substituted.

S.10 Amendment of section 255

In section 255 of the Income-tax Act, in sub-section (8), in the proviso, for the figures “2024”, the figures “2025” shall be substituted.

S.11 Amendment of section 2

In the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the Central Goods and Services Tax Act), in section 2, for clause (61), the following clause shall be substituted, namely:—

‘(61) “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20;’.

S.12 Substitution of new section for section 20

For section 20 of the Central Goods and Services Tax Act, the following section shall be substituted, namely:

20. (1) Any office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, shall be required to be registered as Input Service Distributor under clause (viii) of section 24 and shall distribute the input tax credit in respect of such invoices.

(2) The Input Service Distributor shall distribute the credit of central tax or integrated tax charged on invoices received by him, including the credit of central or integrated tax in respect of services subject to levy of tax under sub-section (3) or sub-section (4) of section 9 paid by a distinct person registered in the same State as the said Input Service Distributor, in such manner, within

S.13 Insertion of new section 122A

After section 122 of the Central Goods and Services Tax Act, the following section shall be inserted, namely:

122A. (1) Notwithstanding anything contained in this Act, where any person, who is engaged in the manufacture of goods in respect of which any special procedure relating to registration of machines has been notified under section 148, acts in contravention of the said special procedure, he shall, in addition to any penalty that is paid or is payable by him under Chapter XV or any other provisions of this Chapter, be liable to pay a penalty equal to an amount of one lakh rupees for every machine not so registered.

(2) In addition to the penalty under sub-section (1), every machine not so registered shall be liable for seizure and confiscation:

Provided that such machine shall not be confiscated where—

• (a) the penalty so imposed is paid; and
• (b) the registration of such machine is made in accordance with the special procedure within t