New Delhi: After facing a massive criticism, the Ministry of Information and Broadcasting India has reportedly withdrawn the new draft of the Broadcasting Services (Regulation) Bill, 2024, which sparked controversy due to concerns over increased government control of online content.
As reported by the Indian Express, the draft raised significant issues regarding freedom of speech and the government’s regulatory powers.
Last month, the ministry shared the draft with a select group of stakeholders, inviting their feedback.
Indian Express quoting sources, including a senior government official and industry executives, reported that the ministry has now requested the return of the draft from those stakeholders.
The ministry is expected to revise the proposal and work on a new draft.
Although the ministry did not officially comment on the withdrawal, it posted a statement on X, referencing an earlier draft bill from November last year.
The statement mentioned ongoing consultations with stakeholders and extended the deadline for their feedback to October 15, with a promise of publishing a new draft after thorough discussions.
However, the statement did not address the latest draft, which had been privately shared and later recalled.
The bill, intended to replace the 1995 Cable Television Networks (Regulation) Act, originally focused on television broadcasting but was expanded to include OTT content, digital news, and current affairs in the November draft.
The latest version, shared with a few stakeholders, shifted its focus significantly, extending its reach to social media accounts and online video creators. This broadened scope led to backlash from independent content creators and big tech companies, concerned about potential government overreach.
On August 7, in response to backlash over the Budget proposal to remove indexation benefits on long-term capital gains (LTCG), the government of India announced that taxpayers can choose to pay 20% LTCG tax with indexation benefit on properties acquired before July 23, 2024
Alternatively, taxpayers can opt for the previously introduced lower tax rate of 12.5% without indexation, as detailed in the amended Finance Bill. Taxpayers can choose the option that results in the lower tax payment, Indian Express reported last week.
These amendments represent a significant reversal of the Budget’s initial LTCG-related proposals for the real estate sector. Although the government initially defended the removal of indexation by highlighting the lower 12.5% tax rate, the decision faced considerable opposition from real estate investors and property owners who called for relief.
The amendment clarifies that for properties purchased after July 23, 2024, only the new LTCG tax regime of 12.5% without indexation will apply.
Indexation adjusts the original purchase price of an asset to account for inflation, allowing taxpayers to mitigate the impact of inflation on capital gains taxes. Without indexation, gains on long-held assets can appear inflated and unrealistic.
With the new amendments, properties purchased before the Budget presentation date of July 23 are effectively grandfathered. Previously, the proposal did not offer grandfathering for properties bought after April 1, 2001, with the fair market value on that date taken as the acquisition cost. Grandfathering allows old rules to apply to existing situations up to a certain date, with new rules applying thereafter.
