India: Revisions to direct tax amendments proposed by Union Budget 2025

Amendments proposed under Union Budget 2025 have been revised.

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March 26, 2025

Revisions to the amendments proposed to the Income-tax Act, 1961 by the Finance Bill, 2025 (read TaxNewsFlash) include:

  • Presumptive taxation scheme for nonresidents providing electronics manufacturing services: Expanded to include income in the nature of royalties or fees for technical services otherwise taxable on gross basis
  • Equalisation levy on online advertisement services provided by nonresidents: Repeal the levy effective April 1, 2025
  • Treatment of securities held by investment fund and invested in accordance with SEBI regulations as capital assets: Extended to securities invested in accordance with IFSCA Act, 2019
  • Funds in International Financial Services Centre (IFSC) qualification for tax exemption: Repeal of separate conditions imposed for qualification for tax exemption

Read a March 2025 report prepared by the KPMG member firm in India

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