As the Centre attempts to secure parliamentary approval of the Union Budget 2025, the government recently introduced a key amendment to the Finance Bill 2025.
Reetu | Mar 25, 2025 |
![Union Finance Minister introduced Key Amendments to Finance Bill 2025 [Download Notice of Amendments]](/cdn-cgi/image/fit=contain,format=webp,gravity=auto,metadata=none,quality=80,width=1200,height=730/wp-content/uploads/2025/03/Key-Amendments-to-Finance-Bill-2025.jpg)
Union Finance Minister introduced Key Amendments to Finance Bill 2025 [Download Notice of Amendments]
As the Centre attempts to secure parliamentary approval of the Union Budget 2025, the government recently introduced a new amendment to the Finance Bill 2025.
The key amendment includes removing the 6% equalisation levy on online services under direct taxes, changes in the safe harbour regime applicable to foreign investment managers handling funds in the Indian market, removal of a 5% monitoring limit applicable to investment fund managers, implementing presumptive taxation for electronic manufacturing units and many more.
Removal of Google Tax
The 6% tax, also known as the “Google Tax,” was mostly imposed on online advertising services. The removal of the levy is expected to help companies that sell online advertising space, particularly large US-based tech giants such as Google and Meta. Once removed, this action is projected to reduce the tax burden on Indian digital advertising customers.
According to sources, changes affecting foreign investment managers may encourage offshore funds to invest and establish offices in India.
Introducing Section 44BBD for electronics manufacturing (25% presumptive income), a provision has been included that Section 44DA and Section 115A are not applicable. As a result, there will be no more controversy than there is now in Section 44BB cases, where the Revenue continues to argue that the provision of Section 44DA would overrule Section 44BB.
A proposal of adding to be added to the list of permissible adjustments by CPC under Section 143(1)- any inconsistency on the basis of previous year ITR can also be a subject matter of adjustment by CPC while processing ITR. Which basically means, amendment to Section 143(1) allows CPC to adjust ITRs based on previous year inconsistencies.
Once passed by Parliament, the amended Finance Bill 2025 becomes law, allowing the government to carry out its budget proposals.
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