International tax perspective in the budget:

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1.  Equalisation levy- It is proposed that this equalisation levy at the rate of 2% shall not be applicable to consideration received or receivable for e-commerce supply or services from non resident e-commerce operators, on or after the first day of August, 2024.

2.  Foreign Companies- The corporate tax rate for foreign companies has been reduced to 35 per cent to attract foreign capital.

3.  Vivad se Vishwas Scheme- The 2024 Vivad se Vishwas Scheme will be introduced to resolve pending direct tax disputes.

4.  Safe Harbour Rules- To reduce litigation and ensure certainty in international taxation, the scope of safe harbour rules will be expanded.

5.  Appeals threshold- The monetary thresholds for filing appeals related to direct taxes, excise, and service tax have been increased to ₹60 lakh, ₹2 crore, and ₹5 crore respectively for Income Tax, Tribunals, High Courts, and the Supreme Court.

6.  Assessment- The transfer pricing assessment procedure will be streamlined.

7.  Interest Deduction- IFSCs are exempt from the purview of Section 94B – Limitation on interest

What is left to be addressed? The budget did not address the implementation of the Organisation for Economic Co-operation and Development (OECD’s) Global Minimum Tax in India.