CA Narendra Ramdasee

CA Narendra Ramdasee

2/25/2025, 5:24:31 PM

Income Tax Challan Codes in India 2/2

CA Narendra Ramdasee

2/1/2025, 11:42:35 AM

*87A Rebate Rs 60000 of income-tax is not available on tax on incomes chargeable at special rates (for e.g.: capital gains u/s 111A, 112 etc.)*

CA Narendra Ramdasee

2/1/2025, 11:39:02 AM

Here is a breakdown of tax increases and decreases in the Budget 2025-26: 📉 Tax Decreases (Relief Measures) 1️⃣ Personal Income Tax Reduction ✅ New tax slabs for individuals (New Regime) No tax up to ₹12 lakh (₹12.75 lakh for salaried taxpayers after deductions). New Tax Slabs:₹0-4 lakh → 0% ₹4-8 lakh → 5% ₹8-12 lakh → 10% ₹12-16 lakh → 15% ₹16-20 lakh → 20% ₹20-24 lakh → 25% Above ₹24 lakh → 30% 📝 Impact: Significant tax savings for the middle class. ✅ TDS & TCS Reductions Section 194LBC (Income from securitization trust)Before: 25% (Individual/HUF) & 30% (Others) Now: Reduced to 10% Timber & Forest Produce TCS reduced from 2.5% to 2%. Liberalized Remittance Scheme (LRS) TCS on education loans removed. ✅ Corporate & Business Tax Benefits Presumptive Taxation for Electronics Manufacturing: A simplified tax regime introduced for foreign companies supporting electronics manufacturing. Tonnage Tax for Inland Vessels: Now available for inland ships, reducing their tax burden. Startups (Section 80-IAC):Tax benefits extended for startups incorporated before April 1, 2030. Investment Date Extension for Sovereign & Pension Funds: Extended to March 31, 2030 for investments in infrastructure. ✅ Customs Duty Reductions Leather Export Duty (Crust Leather - Hides & Skins) removed (was 20%). Lab-Grown Diamond Seed Imports: Import duty exemption continued. Export of Handicrafts: Duty-free export time increased from 6 months to 1 year. ✅ Crypto & Digital Asset Compliance Simplified Reporting for Virtual Digital Assets (VDA) (Crypto transactions) has been clarified to remove tax ambiguity. ✅ Charitable Trusts & Institutions Registration period extended from 5 years to 10 years for small charitable institutions, reducing compliance costs. 📈 Tax Increases (New Burdens) 1️⃣ Customs & Import Duty Increases ❌ Textile Sector Import duty on knitted fabrics increased to 20% or ₹115/kg, whichever is higher. ❌ Electronics & Consumer Goods Interactive Flat Panel Display import duty increased from 10% to 20%. Import Duty on High-End Watches & Luxury Goods Increased (exact percentage not specified in budget speech). ❌ Personal Use Imports (Luggage & Baggage) BCD (Basic Customs Duty) on baggage items remains high at 35%. 2️⃣ Capital Gains Tax & Securities Taxation ❌ Tax Parity for Non-Residents on Securities Transfer Non-residents will now be taxed at the same capital gains rate as residents, removing previous tax advantages. 3️⃣ Indirect Tax & Trade Restrictions ❌ Compliance Burden for Crypto Holders Mandatory reporting for crypto-asset transactions in certain cases. 📌 Key Takeaways ✅ Who Benefits from Tax Reductions? Middle-Class Earners: No tax up to ₹12 lakh. MSMEs & Startups: Lower tax on businesses & electronic manufacturers. Exporters: Lower duties on leather, lab-grown diamonds, and handicrafts. ❌ Who Faces Higher Taxes? Luxury Imports: Higher taxes on watches, electronics, and textiles. Non-Resident Investors: Equal capital gains tax treatment for foreign vs domestic investors. 📊More tax relief for individuals & businesses, but higher import duties on luxury goods & select electronics. Follow us @ramdasee

CA Narendra Ramdasee

2/1/2025, 11:10:59 AM

Section 206AB i.e. deduction of TDS at higher rate when the deductee is a non-filer of income-tax return. Section 206CCA i.e. collection of TCS at higher rate when the collectee is a non-filer of income-tax return Both these sections are omitted from April 1, 2025.

CA Narendra Ramdasee

2/1/2025, 11:09:19 AM

*Key Highlights of Budget 2025!* *Fiscal Deficit Target:* The fiscal deficit is projected to be *4.4% of GDP, a reduction from the previous year’s 4.8%*, indicating a commitment to fiscal consolidation. *Agriculture and Rural Development*: 1. *Crop Production Missions*: The government has launched a six-year mission to achieve self-reliance in pulses and a five-year mission to boost cotton production, aiming to enhance agricultural output and reduce import dependence📌 2. *Kisan Credit Card (KCC) Limit Increase:* The KCC limit has been raised from ₹3 lakh to ₹5 lakh to facilitate greater credit flow to farmers, supporting their financial needs🦚 *Manufacturing and Industry:* 1. *National Manufacturing Mission:* A new mission has been established to provide policy support and further the ‘Make in India’ initiative, aiming to bolster domestic manufacturing capabilities🚜 2. *Skilling Centers:* Five national centers of excellence will be set up to enhance skilled manpower for the manufacturing sector, addressing the industry’s demand for qualified professio👩‍🏫 *Infrastructure and Urban Development:* 3. *Interest-Free Loans to States:* The budget allocates ₹1.5 trillion in 50-year interest-free loans to states for infrastructure development, encouraging regional growth and modernization 💸 4. *Urban Challenge Fund:* A fund worth ₹1 trillion has been created to support innovative urban development projects, promoting sustainable and inclusive city planning💰 *Financial Sector Reforms:* 1. *FDI in Insurance:* The Foreign Direct Investment limit in the insurance sector has been increased from 74% to 100%, aiming to deepen market penetration and attract more international investment🆙 2. *Revamped KYC Process:* A revamped Know Your Customer (KYC) registry is set to be rolled out in 2025 to streamline and simplify the compliance process for financial institutions and their clients👏

CA Narendra Ramdasee

2/1/2025, 11:13:02 AM

Top 75 Highlights of Budget 2025 By FM Nirmala Sithraman 1. No Income Tax upto Income of Rs 12 Lakhs, New Slab Rates for all Taxpayers benfiting Middle Class 2. FM propose to introduce the New Income Tax Bill next week 3. New Bill be Half of the present Income Tax law in terms of chapters and words 4. TDS on Senior Citizen Rs 1 lakhs plus on interest TDS on Rent Rs 6 Lakhs onwards 5. 90 Lakhs filed updated returns Now you can file Income Tax Returns for past 4 years in ITR U 6. The focus is on inclusive development and boosting middle-class spending. 7. Budget aims to accelerate growth and unlock the nation’s potential. 8. Budget will initiate reforms in primarily 6 domains — taxation, urban development, mining, financial sector, power and regulatory reforms. 9. Plant with annual capacity of 12.7 lakh metric tons to be set up at Namrup, Assam 10. 3 dormant urea plants in the Eastern region had been reopened 11. Investment limit for #MSME classification to be made 2.5 times. Turnover limits for MSME classification to be doubled 12. Government to provide support to National Cooperatives Development Corporation for its lending operations for cooperative sector 13. Kisan Credit Card: Facilitates loans for 7.07 crore farmers. Loan limit will be increased from Rs3 lakh to Rs5 lakh under KCC 14. Boosts Footwear, Leather & Toys Industry! 15. New scheme for footwear & leather sector to create 22 lakh jobs, ₹4L Cr revenue & ₹1.1L Cr+ exports. 16. Toys sector to get a dedicated scheme to make India a global manufacturing hub!17. Announces 5-year mission to promote cotton production 18. 5 national centres will be set up for skilling in partnerships in manufacturing. Expansion of capacity in IITs - 100% increase in last 10 years. Additional infra will be created for 6500 more students in new IITs. 19. New Fund of Funds for Startups to be set up 20. Fresh contribution of another ₹ 10,000 crore, in addition to existing government contribution of Rs. 10,000 crore. 21. New Scheme for 5 lakh Women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs 22. Centre of excellence in #AI for education to be set up with outlay of Rs. 500 23. To add 75000 medical seats in next 5 years 24. The government will establish a national institute of food technology, entrepreneurship and management in Bihar. 25. Centre will launch a 6-year programme for Atamnirbharta in pulses 26. Credit guarantee cover to be enhanced for MSMEs and start-ups 27. 75 thousand seats will increase in IIT 28. Cancer hospital will open in every district Broadband facility will be available in primary schools 29. The government will create a ₹1 lakh crore Urban Challenge Fund aimed at transforming cities into growth hubs. The fund will finance 25% of the cost of bankable projects, with an allocation of ₹10,000 crore for 2025-26.The remaining 50% will be funded through bonds, bank loans, and public-private partnerships (PPPs). 30. FM announces Dhan Dhanya Krishi Yojna in partnership with states. Scheme to cover 100 Districts. Says 1.7 crore farmers will be benefited. 31. A new scheme has been launched to offer term loans with a five-year tenure, benefiting 5 lakh women from SC/ST communities. 32. The Finance Minister announced a dedicated scheme for India’s footwear and leather sector, expected to generate employment for 22 lakh individuals, achieve a revenue of ₹4 lakh crore, and boost exports to over ₹1.1 lakh crore. 33. For the toys sector, the government will implement a scheme to make India a global manufacturing hub. 34. Saksham Anganwadi and Poshan 2.0 programs will provide vital nutritional support to 8 crore children, 1 crore mothers, and 20 lakh adolescent girls, focusing on lactating women, adolescent girls, and children. 35. 50.000 Atal Tinkering Laboratories (ATLs) will be set up in government schools in the next 5 years to foster scientific temper in young minds. Broadband connectivity is to be provided to all secondary schools. 36. Five National Centres of Excellence for Skilling will be established to equip the youth with the necessary skills for global opportunities. The Finance Minister also promised global skilling partnerships to enable India to become a key player in global manufacturing. 37. The PM Swanidhi Scheme will be revamped with higher loan limits and the introduction of a ₹30,000 UPI-linked credit card. The government will also facilitate identity card issuance and registration on the e-Shram portal for gig workers, providing insurance coverage for nearly 1 crore workers. 38. 3-year pipeline of projects by states to be given that can be implemented in private-public partnership (PPP) mode. Each infrastructure-related ministry is to come up with a 3-year plan to be implemented in PPP mode. The outlay of ₹1.5 lakh crore is proposed for 50-year interest-free loans. 39. Extend Jal Jeevan mission with an enhanced outlay, focus on quality infrastructure and O&M. 15 crore households have been provided portable tap water access under Jal Jeevan Mission 40. 100GW nuclear enegery by 2047 is essential for energy transition 41. The modified UDAN scheme will be launched to connect 120 new destinations and cater to 4 crore passengers over the next 10 years. 42. India’s cities are set for transformation! The ₹1L Cr Urban Challenge Fund will fuel creative redevelopment, enhance water & sanitation infra, and turn cities into growth hubs. With ₹10K Cr allocated for FY 2025-26, the future of urban India looks ambitious! 43. hrust on investment in infrastructure continues with focus on PPP projects and asset monetization among others 44. Each infrastructure-related ministry to come up with a 3-year pipeline of PPP infra projects 45. Financial assistance will be provided for Western Kosi Canal Project in Mithilanchal region of Bihar 46. Focus Product Scheme for Footwear & Leather Sectors is expected to facilitate employment for 22 lakh persons, turnover of ₹4 lakh crore and exports of over ₹ 1.1 lakh crore 47. Scheme to Make India a Global Toys Hub; To create high-quality toys representing the Made In India brand 48. Mudra loans to be provided to homestays, says FM. 49. Medical tourism and ‘heal in India’ to be promoted in partnership with private sector. Top 50 tourism destination sites will be developed in partnership with states 50. Extension of Jal Jivan Mission till 2028, It started in 2019. 100% household receive clean water through tap. 51. The government will offer a national guidance framework to help states promote Global Capability Centres (GCCs) and enhance their growth. 52. Centralized KYC system soon 53. Jan Vishwas 2.0 bill to decriminalise over 100 provisions in existing laws. 54. Banks will be required to maintain a Grameen credit score for self-help groups to facilitate better financial access and support. 55. Govt to draft model bilateral investment treaty to attract foreign investment 56. Insurance FDI hiked from 74% to 100% 57. The revised estimate of the total receipts other than borrowings is Rs 31.47 lakh crore of which the net tax receipts are Rs 25.57 lakh crore. 58. Scheme to cover 100 districts with low productivity, moderate crop intensity and below-average credit parameters 59. 10,000 fellowships to be provided under the PM Research Fellowship scheme in next five years, for technological research in IITs and IISc 60. Investing in Research, Development and Innovation ₹ 20,000 crore for private-sector driven Research, Development and Innovation initiative announced in the July Budget 61. National Geospatial Mission to be launched to develop foundational geospatial infrastructure and data 62. India ranks second largest globally in fish production and aquaculture. Seafood exports are valued at 60,000 Crore Rupees. To unlock the untapped potential of the marine sector, the government will bring in an enabling framework for sustainable harnessing of fisheries from the Indian exclusive economic zone and high seas with a special focus on the Andaman and Nicobar and Lakshadweep Islands. 63. FastTrack Merger for companies 64. Propose removal of 7 tariff rates over an above those in removed in earlier budget. Only 8 tariff rates to remain after the new move. 65. Fiscal Deficit at 4.4% of GDP 66. Propose removal of 7 tariff rates over an above those in removed in earlier budget. Only 8 tariff rates to remain after the new move. 67. The threshold limit for TCS on LRS remittances has been increased from ₹7 lakh to ₹10 lakh. 68. The TDS threshold limit on rent has been raised to ₹6 lakh. 69. It is proposed to remove TCS on education loans up to ₹10 lakh from specified financial institutions. 70. The new income tax bill will retain nearly half of the existing provisions and introduce personal income tax reforms with a focus on the middle class. It will also rationalise the tax deducted at source (TDS) and tax collected at source (TCS) regime by reducing the number of rates and adjusting thresholds. 71. TCS on sales removed 72. Scheme to be introduced for determining arm's length price of international transaction for a block period of three years, to streamline transfer pricing and to provide an alternative to yearly examination 73. Tax exemption to be provided on withdrawals made from National Savings Scheme by individuals on or after 29th August, 2024 74. Compliance burden for small charitable trusts & institutions to be reduced, by increasing their registration period from 5 years to 10 years 75. Taxpayers to be allowed to claim annual value of two self-occupied properties as nil without any condition.