The Finance Act 2024 brings significant changes to income tax laws effective from 1st April 2025. Key amendments include the extension of tax benefits under Section 80-IAC for startups incorporated till 31st March 2030, encouraging entrepreneurship. TDS thresholds have been rationalized, including increases for rent (₹50,000/month), senior citizens' interest income (₹1 lakh/year), and insurance commission (₹20,000). A new 10% TDS on payments exceeding ₹20,000 to partners has been introduced under Section 194T. Additionally, TCS on goods is eliminated if buyers deduct TDS under Section 194Q, streamlining compliance. Individual taxpayers benefit from a higher rebate limit under Section 87A (up to ₹12 lakh) and an increased standard deduction (₹75,000), making incomes up to ₹12.75 lakh tax-free under the new regime. Filing updated returns (ITR-U) is now allowed up to 4 years from the relevant assessment year, encouraging voluntary compliance. Procedural reforms include extended timelines for block assessments (12 months) and a 10-year validity for charitable trust registrations under Section 12AB. For trusts, Section 13(3) narrows the scope of "specified persons" to donors contributing over ₹1 lakh. The new NPS Vatsalya Scheme permits parents/guardians to claim deductions under Section 80CCD for contributions to a minor child's NPS account.
Read more at: https://taxguru.in/income-tax/key-income-tax-effective-01-04-2025.html
No comments:
Post a Comment