Page 18 - Policy Economic Report_Feb'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

2. Taxation - Direct Tax
Personal Income Tax: The income tax exemption limit has been raised to ?12 lakh from the
previous ?7 lakh, providing substantial relief to middle-class taxpayers. Revised tax slabs have
been introduced to simplify the tax structure and increase disposable income.
Corporate Tax: Reduction in corporate tax rates to encourage investment and growth.
TDS/TCS rationalization for easing difficulties: Rationalization of Tax Deduction at Source (TDS)
by reducing number of rates and thresholds above which TDS is deducted. Decriminalization for
the cases of delay of payment of TCS up to the due date of filing statement.
Ease of Doing Business: Introduction of a scheme for determining arm's length price of
international transaction for a block period of three years. Expansion of the scope of safe harbour
rules to reduce litigation and provide certainty in international taxation.
Reducing Compliance Burden: Reduction of compliance burden for small charitable
trusts/institutions by increasing their period of registration from 5 years to 10 years.
Extension of investment date for Sovereign and Pension Funds: Extension of the date of making
investments in Sovereign Wealth Funds and Pension Funds by five more years, to 31st March,
2030, to promote funding from them to the infrastructure sector.
Extension for incorporation of Start-Ups: Extension of the period of incorporation by 5 years to
allow the benefit available to start-ups incorporated before 1.4.2030.
Tonnage Tax Scheme for Inland Vessels: The benefits of existing tonnage tax scheme to be
extended to inland vessels registered under the Indian Vessels Act, 2021 to promote inland water
transport in the country.

Indirect Tax
Rationalisation of Customs Tariff Structure for Industrial Goods: Removal of seven tariff rates.
This is over and above the seven tariff rates removed in 2023-24 budget. After this, there will be
only eight remaining tariff rates including ‘zero’ rate.
Relief on import of Drugs/Medicines: 36 lifesaving drugs and medicines fully exempted from
Basic Customs Duty (BCD). 6 lifesaving medicines to attract concessional customs duty of 5%.
Specified drugs and medicines under Patient Assistance Programmes run by pharmaceutical
companies fully exempted from BCD; 37 more medicines added along with 13 new patient
assistance programmes.

Support to Domestic Manufacturing and Value addition

Export Promotion & Trade facilitation

3. Agriculture and Rural Development
Prime Minister Dhan-Dhaanya Krishi Yojana: To be launched in 100 low crop productivity
districts, benefiting 1.7 crore farmers by enhancing agricultural productivity and irrigation
facilities.
Increased Credit: Enhanced credit support for farmers to boost agricultural output.

February 2025 Page | 17