Most Important Amendment for Tax Laws and Practice
Most Important Amendment for Tax Laws and Practice in Finance Act 2024 brings key updates for CS Executive, including higher standard deduction, STCG changes, GST exemptions, TDS/TCS alignment, and removal of angel tax. Revising these amendments, preparing updated notes, and practicing case studies help students stay exam-ready, score better, and apply tax knowledge effectively.
Muskan Verma21 Nov, 2025
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Tax Laws and Practice change every year with the Union Budget and the Finance Act. Due to these frequent changes, students preparing for CS Executive exams in 2025 need to study the amendments closely. Therefore, those preparing for the 2025 session must read the amendments made in the Finance Act 2024.
The changes made under the Finance Act 2024 covered both direct and indirect taxes. So, understanding them will help students answer questions correctly and apply the law in case studies. Below, we’ve explained the most important amendments in Tax Laws and Practice simply and clearly.
Amendments in the Finance Act 2024: Overview
Under the Finance Act 2024, significant changes were made in both direct and indirect taxes. These changes were made to simplify the law, increase compliance, and support economic growth. Some changes focus on giving relief to salaried individuals and pensioners. Others target startups, capital gains, and GST compliance.
For CS Executive students, these changes are very important because questions in exams will be based on the latest law. Outdated provisions will not help in securing marks. This makes it necessary to prepare for Tax Laws and Practice CS Executive notes that include amendments.
Direct Tax Laws and Practice Amendment
Direct tax amendments cover income tax, capital gains, buyback of shares, and relief for individuals. These changes make tax rules easier and reduce disputes:
| Direct Tax Laws and Practices Amendments in the Finance Act 2025 | ||
| Amendment | Explanation | Impact |
| Standard Deduction | Raised from ₹50,000 to ₹75,000 under new tax regime | Higher relief for salaried taxpayers |
| Pension Deduction | Family pension deduction raised | More savings for pensioners |
| Capital Gains Holding Period | 36 months removed, only 12 and 24 months apply | Easier classification |
| STCG on Listed Equity | The rate increased from 15% to 20% | Higher tax on short-term trades |
| Buyback of Shares | Treated as deemed dividend, capital loss allowed | Clearer taxation rules |
Indirect Tax Laws and Practice Amendment
Indirect tax changes mostly deal with GST. The Finance Act 2024 introduced new exemptions and clarified rules for services:
| Indirect Tax Laws and Practice Amendment | ||
| Amendment | Key Change | Impact |
| GST Exemption on Railways | Certain inter-zonal services are exempt | Reduces the cost of public transport |
| GST on Helicopter Services | Shared helicopter rides are exempt, chartered not exempt | Encourages affordable air travel |
| Place of Supply Rule | Delivery address considered for unregistered buyers | Prevents misuse and simplifies compliance |
| Temporary GST Registration | For unregistered persons making GST payments | Smooth compli |
TDS and TCS Related Changes
With the Finance Act 2024, several new rules were introduced for TDS and TCS. All these changes improved the compliance and reduced mismatches. Check the table below to know about the changes made in both:
| TDS and TCS Related Changes | ||
| Amendment | Explanation | Impact |
| TDS on Partner Payments | 10% TDS on salary, commission, interest, and bonus by firms/LLPs | Ensures reporting of partner income |
| TDS and TCS in Salary | TCS to be included with TDS for salary deduction | Better accuracy in salary tax |
| TCS on Luxury Goods | Extended to goods above ₹10 lakh (not only vehicles) | Wider tax base |
| Interest Alignment | Same interest rate for late TDS/TCS | Uniformity in compliance |
Tax Laws and Practices for Startups
Startups also received relief under the Finance Act 2024. The biggest change is the removal of the Angel Tax:
- Angel Tax Removal: Earlier, if a company issued shares at a higher price, the excess was taxed. This created a burden for startups. Now, this tax is removed.
- Impact: Easier funding, more investment, and smoother compliance.
- Why it matters: Startups are important for economic growth, and tax relief encourages innovation.
Why These Amendments Matter for CS Students?
For CS Executive students, amendments in Tax Laws and Practice are very important. Questions are often asked directly about new provisions. Outdated knowledge can cause mistakes in exams.
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Relevance in Exams: Most papers include direct questions on recent amendments.
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Conceptual Clarity: Helps students understand how tax rules apply in real situations.
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Scoring Opportunity: Writing updated answers improves marks.
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Professional Use: Knowledge is useful in advisory roles after qualification.
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Practical Case Studies: Many amendments are tested in practical examples.
The Finance Act 2024 introduced many important changes in Tax Laws and Practice. Direct tax changes improved deductions and simplified capital gains. Indirect tax updates clarified GST exemptions and compliance. TDS and TCS changes improved reporting and reduced mismatches. Startups received relief with the removal of the angel tax.
For students of Tax Laws and Practice CS Executive, learning these updates is necessary. Making proper Tax Laws and Practice CS Executive notes and practicing with past papers will help in scoring well. With regular study, understanding, and revision, students can handle amendments with ease and perform better in exams.