TaxTMI 
TaxTMI 
Budget Speech 2025 - A quick read on Direct taxes
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....udget Speech 2025 - A quick read on Direct taxes<br>By: - CSSwati Rawat<br>Budget - Tax Proposals<br>Dated:- 1-2-2025<br>Budget Speech 2025 - Tax Reforms and Key Proposals Streamlining taxation as part of its broader vision for 'Vikasith Bharat'. A new Income Tax Bill will reduce the density of current laws, featuring clearer and more abridged provisions, cutting both chapters and words by half.....
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.... Tax Rate Structure Revisions - * No Tax on Income Up to ₹12 Lakh. * Individuals earning up to ₹12 lakh annually (₹1 lakh per month) will pay no income tax under the new tax regime. * For salaried taxpayers, due to the ₹75,000 standard deduction, this threshold is ₹12.75 lakh. Revised Tax Slabs and Rates - • 0 - ₹4 lakh: 0% • ₹4 - &#....
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....8377;8 lakh: 5% • ₹8 - ₹12 lakh: 10% • ₹12 - ₹16 lakh: 15% • ₹16 - ₹20 lakh: 20% • ₹20 - ₹24 lakh: 25% • Above ₹24 lakh: 30% Tax Rebates and Benefits - Taxpayers earning up to ₹12 lakh (excluding special income like capital gains) will receive a rebate, resulting in zero tax payable. Other Major Tax Pr....
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....oposals 1. TDS and TCS Reforms * Lessening in the number of TDS rates and thresholds for simplification. * Increase in tax deduction limits. * Senior citizens' interest deduction limit increased from ₹50,000 to ₹1 lakh. * TDS threshold for rent payments increased from ₹2.4 lakh to ₹6 lakh annually. * TCS threshold for remittances under RBI's Liberalized Remittanc....
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....e Scheme (LRS) increased from ₹7 lakh to ₹10 lakh. * TCS exemption for educational payments funded by loans from specified financial institutions. * Higher TDS provisions to apply only to non-PAN holders. 2. Voluntary Compliance and Updated Returns * Time limit for filing updated returns extended from 2 to 4 years. * The government highlights the success of the updated return ....
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....facility introduced in 2022, with nearly 90 lakh taxpayers voluntarily updating their incomes. 3. Charitable Trusts and Compliance Relief * Registration period for small charitable trusts extended from 5 to 10 years. * Provisions to prevent disproportionate penalties for minor compliance errors. 4. Property and Transfer Pricing Reforms * Taxpayers can now claim the benefit of two self-occu....
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....pied properties without conditions. * Introduction of a 3-year block period scheme for determining arm's length pricing of international transactions. * Expansion of safe harbour rules to reduce litigation and provide tax certainty in international taxation. 5. Senior Citizen Benefits * Exemption for withdrawals from National Savings Scheme (NSS) accounts with no interest accrual after Augu....
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....st 29, 2024. * Extension of similar benefits to NPS (Vatsanya) accounts. 6. Digitalization and Dispute Resolution * Implementation of paperless, digital processes for tax orders and appeals. * The Vivaat Se Vishwaas dispute resolution scheme has seen 33,000 taxpayers settle disputes.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....