Finance Act 2025 receives assent of the President on the 29th March, 2025
The Union Finance Minister MS Sitharaman had presented Union Budget 2025-26 on 1st February 2025. The Finance Act 2025 has received the assent of the President on the 29th March, 2025 and has been notified.
Major Highlights of Income Tax and other Proposals in Union Budget 2025-26 were as under:
1. Investment and turnover limit for classification of MSME increased.
2. Startups – New Funds of Funds to be setup
3. New Income Tax Bill to come next week
4. Trust first, Scrutinize later – commitment of ITD
5. Special focus on Middle class, TDS/TCS reforms
6. TDS rationalising. Rates and threshold reduced
7. Limit for TDS on interest for senior citizens increased
8. TDS limit on rent increased to 6 lakhs
9. TCS threshold on LRS increased to 10 lakhs. No TCS for LRS for education
10. Higher TDS to apply only to Non PAN cases
11. Decriminilisation of late filing of TCS
12. Extension of time limit for updated return to 4 years
13. Small charitable trust etc. – Period of registration extended to seven years
14. Nil Annual Value of self occupied property – Benefit extended to two self occupied house property
15. Safe Harbour Rules extended
16. NSS withdrawal exempted for seniors citizens
17. Presumptive tax / Safe Harbour Rules for Non resident
18. Tonnage Tax scheme extended to inland vessels
19. Extension for incorporation period of startups to 5 years
20. Section 87A rebate for AY 2025-26 – No income tax payable up to income of Rs 12 lakhs with rebate.
New Personal Income Tax Slab for AY 2026-27 under New Tax Regime are as under
0 to 4 lakhs : Nil
4 to 8 lakh : 5%
8-12 lakhs : 10%
12-16 lakhs : 15%
16-20 Lakhs: 20%
20-24 Lakhs : 25%
above 24 Lakhs : 30%
CBDT condones delay in filing Form No. 10AB furnished electronically between 01.10.2025 to 31.03.2026. CBDT has condoned the delay in…
Supreme Court expresses serious concerns over AI generated judgments/paragraphs relied upon by the NCLT/NCLAT In a recent judgment, the Hon'ble…
ICAI to take disciplinary action for quoting very low and incommensurate fee by Chartered Accountants As per the announcement made…
NSDL latest e-TDS TCS RPU Version 6.0 from FY 2007-08 NSDL has revised the e-TDS TCS RPU utility for preparing…
Requirement for filing Form 67 for claiming Foreign Tax Credit (FTC) is only directory and not mandatory - ITAT In…
Limitation for invoking revisional jurisdiction u/s 263 with respect to issues not covered in re-assessment would start from the original…