Providing tax certainty / widening tax base

Facilitating TDS Credit

• In cases where income is offered by a taxpayer on the basis of accrual in a year but tax on such income is deducted by the payer in the following year(s) at the time of payment, it is proposed to allow the taxpayer to make a claim of such TDS within two years from the end of the year in which such tax is withheld.

• The interest on income-tax refund arising from such a claim is to be allowed only for the period starting from the date of the claim.

Presumptive tax under section 44BB and section 44BBB of the Act

• Section 44BB and 44BBB of the Act provide for presumptive taxation schemes in the case of non-resident taxpayers carrying out eligible businesses such as mineral oils exploration, civil construction relating to turnkey power projects etc. Such taxpayers opt in and opt out of presumptive schemes to avail benefit of both presumptive scheme income and non-presumptive income.

• To avoid such misuse, the said section has been proposed to be amended w.e.f. AY 2024-25 to deny set off of unabsorbed depreciation and brought forward loss in the previous year in which assessee has offered income as per presumptive taxation scheme