Finance Bill 2025 repeals Government Securities Act, 1944

It amends various tax laws, including income-tax, customs, central excise, and goods and services tax, to update rates, rules, and procedures.

Who it concerns: The Bill affects individuals, Hindu undivided families, companies, associations of persons, bodies of individuals, artificial juridical persons, cooperative societies, and other entities subject to income-tax, customs duties, central excise duties, and goods and services tax in India.

What the bill does

• Sets income-tax rates for the assessment year commencing on 1st April 2025, including specific surcharge rates based on total income levels.
• Amends provisions related to the computation of tax on net agricultural income for individuals with total income exceeding specified thresholds.
• Introduces new sections and amends existing sections in the Income-tax Act, 1961, covering definitions, exemptions, deductions, and penalties.
• Amends the Customs Act, 1962, and the Customs Tariff Act, 1985, including the insertion of new sections and amendments to schedules.
• Amends the Central Excise Act, 1944, and the Central Goods and Services Tax Act, 2017, including the insertion of new sections and amendments to schedules.
• Provides for a retrospective exemption from service tax for reinsurance services provided under specific agricultural insurance schemes.
• Amends the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, and the Government Securities Act, 2006.
• Repeals the Government Securities Act, 1944, with savings provisions.

Also in the document

• The Bill was introduced in the Lok Sabha on 1st February 2025.
• Sections 2 to 86, 99 to 115, 120, and 131 come into force on 1st April 2025.
• Sections 116 to 119 and 121 to 129 come into force on a date to be notified by the Central Government.
• The Bill includes the repeal of the Government Securities Act, 1944.