FM to introduce to new Income Tax Bill next week: What is it likely to contain?

Finance Minister Nirmala Sitharaman will introduce a new Income Tax Bill next week, modelled on the Direct Tax Code. The aim is to simplify tax compliance for taxpayers and make the Income Tax Act easier to understand, enhancing readability and removing duplication of laws.

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Will 'Lakshmi' bless taxpayers? High expectations of income tax relief for poor, middle class in Budget 2025 today

Income tax expectations: The Union Budget 2025 will be presented today by finance minsiter in Parliament at 11 AM. There is an expecation among salaried taxpayers and middle class for income tax relief in the form of income tax rate cuts, income tax slabs. Will Maa Lakshmi bless taxpayers today as PM Modi hinted yesterday.

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NRIs selling property in India face a maze of income tax, TDS rules: Simplification urged in Budget 2025

Non-resident property transactions in India face compliance challenges, including obtaining TAN, depositing TDS, and filing e-TDS returns. It is hoped that Budget 2025 simplifies these processes and enables overseas bank payments to ease the compliance burden for buyers and sellers, fostering smoother cross-border property deals.

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5 income tax reliefs that professionals, small businesses expect in Budget 2025

As of January 2025, the number of MSMEs registered on the Udyam portal has reached 5,84,06,752. MSMEs play a pivotal role in economic growth and employment. Therefore, to further boost small and medium businesses in India, the government should consider rationalising certain income-tax provisions for MSMEs and professionals in Budget 2025.

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No GST on penal charges levied by banks, NBFCs and other regulated entities on loans, clarifies CBIC

No GST on penal charges: The government has clarified that no bank, NBFC, regulated entities (REs) can charge Goods and Services Tax (GST) on penal charges on loans. Penal charges are payments in the nature of liquidated damages for breach of contract and hence are not a consideration for tolerating an act or situation.

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Income tax deductions are not inflation linked hitting taxpayers harder: Budget 2025 needs to hike these

Since its introduction, the government has actively promoted the new tax regime, citing its reduced compliance burden for both taxpayers and authorities. Tax slabs and rates under the new regime have been refined to enhance its appeal. However, is the recalibration of the new tax regime and the reduction in tax rates effectively countering annual inflation?

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New 25% tax rate for middle class, no tax on income up to Rs 8 lakh expected in Budget 2025

The Government's endeavour has been to promote the new tax regime, and personal tax changes in the last few Budgets have been made only for the individuals opting for new tax regime. Almost 72% of taxpayers opted for the new tax regime while filing tax returns for fiscal year 2023-24.

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Income tax appeal resolution typical time 15-20 years: Steps to cut appeal pendency urged in Budget 2025

India has an extensive tax appeals system that starts from the Commissioner of Income Tax Appeals to the Supreme Court. However, India's tax litigation numbers, pendency, and resolution time are significantly high.

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Income tax return filing deadline of July 31 needs to be extended: Will Budget 2025 provide this tax relief to salaried, other taxpayers?

Changes were made in the July Budget to reduce the complexity of the capital gains tax calculations and give some income tax relief to salaried individuals. In addition to individual taxpayers' expectations for tax breaks, there has been a long-standing ask for sufficient time after the financial year-end to complete income tax return filings.

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NRIs' expectations from Budget 2025: 9 changes that NRIs want in income tax rules

The simplification of ITR forms has been a welcome change for NRIs. However, e-verification of ITR form to successfully complete the filing process continues to pose certain challenges. Read our story to know more about the expectations among NRIs of changes in government policies.

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Income tax relief on Capital Gains Deposit Scheme: Can Budget 2025 offer clarity to taxpayers to easily claim exemption on LTCG of house sale?

Taxpayers should remember that tax-saving exemptions on capital gains are available on long-term capital gains (LTCG) only. No exemptions are available if the capital gains are short-term in nature.

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Will Budget 2025 give any income tax relief under old tax regime?

In 2020, the finance minister unveiled the new tax regime, which offered taxpayers the option to pay lower tax but forego most deductions and exemptions typically available for salaried taxpayers. The objective of the new regime was to reduce administrative hassles for employers and employees on the collation and verification of claims made related to deductions and exemptions, and to simplify the income tax return filing process.

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Taxpayers can now claim 87A tax rebate on special income as ITR utility software has been fixed; but it's subject to disputes and litigations

Final judgement on 87A tax rebate claim: The 67 page Bombay High Court judgement says yes taxpayers should be given the option to file their ITR with Section 87A rebate claim and the income tax department wrongly prevented this by modifying the tax utility post July 5, 2024. However, whether to honour such Section 87A tax rebate claims or not the Bombay HC said we need to decide this as and when scrutiny cases arise.

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