Highlights from Budget 2024 for Corporate Sector
The newly formed central government has released its first budget and here are the some highlights for corporate sector - For all listed securities, the holding period is proposed to be 12 months and for all other assets, it shall be 24 months, Equalisation levy at the rate of 2% shall not be applicable to consideration received or receivable for e-commerce supply or services, on or after 01-08-2024, Expenditure incurred for any purpose which is an offence or prohibited by law shall include any expenditure to settle proceedings related to legal contraventions, as notified by the Central Government, For the first Rs. 6,00,000 of book profit or in case of a loss, the limit of remuneration to working partners in a partnership firm is increased to Rs. 3,00,000 or 90% of the book profit, whichever is higher, Any sum referred to in sub-section (1) of section 194J shall not be treated as “work” for the purposes of TDS under section 194, Direct Tax Vivad Se Vishwas Scheme, 2024, to be introduced to offer a settlement mechanism for disputed issues, aiming to reduce litigation at a minimal cost, sunset the provisions of Section 56(2)(viib), also known as angel tax, from the assessment year 2025-26 and rate of tax in case of foreign company shall be reduced from 40% to 35% among other things. Further, Services of Centre for Processing Accelerated Corporate Exit to be extended for voluntary closure of LLPs.
