Personal Income Tax
-No income tax on income up to 12 lakh under the new tax regime.
-Revised tax slabs and rates for those earning above 12 lakh.
-Taxpayers with income up to 12 lakh from normal income (excluding special rate income like capital gains) will receive a tax rebate in addition to the benefit from slab rate reduction, resulting in no tax payable.
TDS/TCS Rationalization:
-Reduced number of rates and increased threshold limits for TDS and TCS
Limit for tax deduction on interest for senior citizens doubled from 250,000 το ₹1 lakh.
-Annual limit for TDS on rent increased from 22.40 lakh to 26 lakh.
Q Book Threshold to collect tax at source (TCS) on remittances under LRS increased from 27 lakh to 10 lakh
TCS on remittances for education purposes removed if the remittance is from a loan taken from a specified financial institution.
TCS on the sale of goods omitted to prevent compliance difficulties. Higher TDS deduction provisions will now apply only in non-PAN cases
Relaxation provided in TCS provisions for delayed payment up to the due date of filing the statement.
Voluntary Compliance:
Time limit for filing updated returns i.e. IIR U extended to four years, promoting voluntary compliance.
1 Reduced Compliance Burden:
Registration period for small charitable trusts increased to ten years, easing the compliance burden.
Benefit of two self-occupied properties allowed without any conditions, addressing difficulties faced by taxpayers.
