The?Union Budget 2025?introduces significant updates impacting income tax, GST, and MSMEs, aiming to simplify compliance, boost economic activity, and ease the financial burden on taxpayers. Below are the major highlights:
- No tax for income up to INR 12,00,000, provided there are no capital gains.
- Salaried individuals can avail of a standard deduction of INR 75,000, making income up to INR 12,75,000 tax-free.
- Rebate under Section 87A: 100% of tax payable or INR 60,000, whichever is lower.
- Taxpayers can now file updated returns within 48 months instead of 24 months.
- Additional tax levied based on delay:
- 12-24 months: 50%
- 24-36 months: 60%
- 36-48 months: 70%
- Filing after 36 months is restricted if a show cause notice is issued.
- Self-occupied Property: Up to two properties can now claim “Nil Annual Value,” removing deemed rental income.
- National Saving Scheme (NSS): Withdrawals made after August 29, 2024, are?tax-exempt.
- Small Charitable Trusts: Registration period extended from 5 years to 10 years for trusts with total income not exceeding INR 5 crore.
- TDS Rate Reduction:
- Insurance commission: Reduced from 5% to 2%.
- Income from securitization trust: Reduced to 10% from 25-30%.
- Threshold Increases:
- Interest on securities: INR 10,000 (previously Nil)
- Interest (other than securities): INR 1,00,000 for senior citizens, INR 50,000 for others
- Dividend income: INR 10,000 (previously INR 5,000)
- TCS on Sale of Goods: Removed to reduce compliance burden.
- No higher TDS for non-filers (Sections 206AB & 206CCA omitted) unless PAN is unavailable.
- Liberalized Remittance Scheme (LRS) Limit: Increased from INR 7 lakh to INR 10 lakh.
- “Crypto-assets” are officially categorized as Virtual Digital Assets (VDA) under tax laws, ensuring stricter regulation and compliance.
