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    NewsBills
    Inclusion of retail schemes and Exchange Traded Funds (ETFs) in the existing relocation regime of fu...
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    Tax-neutral relocation: inclusion of retail schemes and ETFs in IFSC resultant fund definition enables tax-neutral transfers for investors.
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    Inland vessels registered under the Inland Vessels Act, 2021 are made eligible as qualified ships for the tonnage tax regime by aligning the income tax definition of inland vessels with that Act and by introducing corresponding amendments to extend tonnage tax benefits to inland vessels. The amendments are effective from 1 April 2026 and apply to the assessment year 2026 27 and subsequent assessment years.
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    Charitable trust tax exemption requires registration and compliance with application, approval and cancellation procedures under the law.
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    Dividend tax withholding: higher exemption threshold for individual shareholders reduces small-payment TDS obligations from next fiscal year.
    Section 194 requires the principal officer of an Indian company, or a company with prescribed arrangements for dividend payments (including preference shares), to deduct tax at source from dividend payments to resident shareholders at the rate provided in the section. The Finance Bill raises the aggregate exemption threshold for individual shareholders under the first proviso so that no tax is required to be deducted on small aggregate dividend payments, with the amendment effective from the start of the next fiscal year.
    NewsBills
    Section 194A – Interest other than interest on securities
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    TDS on interest thresholds increased, raising exemption limits for banks, cooperatives and post office deposits next fiscal year.
    Amendments raise thresholds under Section 194A for deduction of tax at source on interest other than interest on securities, increasing payer-specific limits for banks, cooperative banks, certain cooperative societies and notified post office deposits from forty thousand to fifty thousand and raising the baseline for other payers from five thousand to ten thousand; senior citizen thresholds for the specified payer categories are increased to one hundred thousand and to ten thousand for other payers. The revised thresholds take effect from the first day of the fiscal year beginning April 1, 2025.

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      Section 194J - Fees for professional or technical services.

      1 February, 2025

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      Union Budget 2025-26 (Full) + Finance Bill, 2025

      Section 194J - Fees for professional or technical services.

      Section 194J of the Act requires for deduction of tax at source on payment by any person, not being an individual or a Hindu undivided family, who pays to a resident any sum of the nature of fees for professional or technical services, any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company, or royalty, or any sum referred to in clause (va) of section 28 of the Act, at the rates specified therein.

      2. Clause (B) of proviso to sub-section (1) of section 194J provides the threshold amount of sum paid during the financial year for tax to be deducted under this section. It is proposed to increase the thresholds specified in Clause (B) of proviso to sub-section (1) of section 194J of the Act as below –

      S. No

      Nature of sum

      Current threshold to deduct TDS

      Proposed threshold

      1.

      Fees for professional services

      Rs. 30,000/-

      Rs. 50,000/-

      2.

      Fees for technical services

      Rs. 30,000/-

      Rs. 50,000/-

      3.

      Royalty

      Rs. 30,000/-

      Rs. 50,000/-

      4.

      Any sum referred to in clause (va) of section 28

      Rs. 30,000/-

      Rs. 50,000/-

      3. This amendment will take effect from the 1st day of April 2025.

      [Clause 60]

       

      Full Text:

      Union Budget 2025-26 (Full) + Finance Bill, 2025

      Topics

      ActsIncome Tax
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