Lok Sabha Passes Finance Bill 2024 with Amendments, Simplifies Tax Laws

The Lok Sabha approved the Finance Bill 2024 with several amendments focused on simplifying tax laws and boosting economic growth. Finance Minister Nirmala Sitharaman clarified provisions on capital gains, health insurance GST, and the new Income Tax Regime, emphasizing a transparent and efficient tax system.

The Lok Sabha passed the Finance Bill 2024 on Wednesday evening after incorporating several amendments suggested by the government. Finance Minister Nirmala Sitharaman highlighted the government's focus on simplifying tax laws and procedures to foster growth and employment.

Responding to queries from members, Sitharaman stated that rollover provisions for capital gains in real estate transactions remain intact. She clarified that investments in new properties worth up to Rs 10 crore or bonds under Section 54 can still avail tax exemptions. An amendment has been introduced to offer taxpayers a choice between a lower tax rate of 12.5% without indexation or a 20% rate with indexation for properties acquired before July 23, 2024. This date marks the new cut-off for capital gains computations, replacing the previous year 2001.

Sitharaman also addressed criticisms regarding the GST on health insurance, explaining that the tax existed in the form of Service Tax before GST. She emphasized that the new Income Tax Regime offers simpler and lower tax rates while maintaining the old regime's benefits. As of the 2024-25 assessment year, 72.8% of taxpayers have adopted the new regime. The Finance Bill 2024 will now be taken up by the Rajya Sabha for further discussion.

(With inputs from agencies.)