FINANCE BILL, 2025 – KEY AMENDMENTS IN TAXATION
1. Personal Income Tax Amendments 🏠💰
- Section 87A: Tax rebate limit increased to ₹12,00,000 with a maximum rebate of ₹60,000.
- Section 115BAC (New Tax Regime): Revised tax slabs from April 1, 2026, reducing tax burden on middle-income groups.
2. Corporate & Business Taxation 🏢📊
- Section 80-IAC & 80LA: Tax benefits for startups and IFSC units extended till 2030.
- Section 92CA: Restrictions on reference to Transfer Pricing Officer to simplify compliance.
- Section 140B: Higher penalties for delayed filings beyond 24 months.
- Section 194Q & 194S: Modifications in TDS applicability on purchases and virtual digital assets.
3. Amendments in TDS & TCS Provisions 💳📑
- Section 194J: Increased threshold for professional fees from ₹30,000 to ₹50,000.
- Section 194K: Higher exemption limit for mutual fund TDS.
- Section 206AB: Omission of special TDS provisions for non-filers.
4. Taxation of Crypto and Digital Assets 🪙🔗
- Section 285BAA: New reporting obligations for crypto transactions.
- Section 115AD: Capital gains tax for Foreign Portfolio Investors increased.
- Section 47A: Explicit taxation of digital assets.
5. Procedural & Compliance Changes ⚖️📝
- Section 132: Increased retention period for seized documents.
- Section 270AA: Extended time for penalty immunity applications.
- Section 275: Defined timeline for imposing penalties within 6 months post-assessment.
6. Indirect Tax Amendments (Customs, Excise & GST) 🚢📦
- Customs Act Section 28: Clarity on refund claims in provisional assessments.
- GST Amendments: Revised definitions and compliance norms, impacting e-commerce businesses and filing processes.
For further guidance on how these amendments impact your tax planning and compliance strategy, reach out to Valuable Advisors Private Limited for professional consultation.
Disclaimer: This document is a general compilation of amendments introduced in the Finance Bill, 2025, based on Budget 2025. It is intended for informational purposes only and should not be treated as financial, tax, or legal advice. Please consult with a professional before making any tax-related decisions.
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