Page 17 - ICAI UAE TAX UPDATE_JULY 2024

• Futures up from 0.0125% to 0.02%
• Options up from 0.0625% to 0.1%

Taxpayer Services and Compliance:

1. Digitalization of Services:
o All remaining services of Customs and Income Tax, including rectification and appellate orders, will be
digitalized over the next two years.
2. Simplification of Reassessment:
o Assessment can be reopened beyond three years up to five years from the end of the Assessment Year
only if the escaped income is ₹50 lakh or more.
3. Vivad Se Vishwas Scheme, 2024:
o A new scheme for the resolution of income tax disputes pending in appeal has been introduced.

Miscellaneous:

1. Social Security Benefits:
o Deduction for employer expenditure towards the National Pension System (NPS) increased from 10% to
14% of the employee’s salary.
2. E-commerce and Mutual Funds:
o TDS rate on e-commerce operators reduced from 1% to 0.1%.
o The 20% TDS rate on the repurchase of units by mutual funds or UTI has been withdrawn.

These measures aim to simplify the tax system, provide financial relief, and encourage economic growth by creating
a more favorable environment for individuals and businesses alike.

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UA E TAX UPD ATE NEWSLET TER ISSUE 04 - July 2024 ISSUE 04 - July 2024 UA E TAX UPD ATE NEWSLET TER