Income Tax Consultant

28/07/2025

17/02/2025

Ten unique points in respect of Income Tax Bill 2025:

Introduction of ‘Tax Year’:

No More ‘Previous Year’ & ‘Assessment Year’.
The confusing terms Previous Year and Assessment Year have been replaced with a single Tax Year for better clarity.

More sections, but simpler language:

The new bill has 536 sections compared to 298 sections in the 1961 Act, but uses shorter sentences, fewer legal jargons, and simplified provisions.

Tables & Formulae for Easy Understanding:

Complex provisions related to TDS, presumptive taxation, salaries, and deductions are now presented in tabular format for easier reference.

All TDS Provisions Consolidated in One Place:

Instead of scattered TDS provisions across multiple sections, the new bill brings them together under a single clause with structured tables.

Removal of Redundant & Archaic Provisions:

Outdated provisions like Fringe Benefit Tax (FBT), which was abolished in 2009, have been completely removed.

Introduction of ‘Taxpayer’s Charter’ for Transparency:

The bill includes a Taxpayer’s Charter, outlining rights and obligations, aiming to improve trust between taxpayers and the tax department.

Judicial Precedents Incorporated to Reduce Litigation:

The bill includes important judicial pronouncements from the last 60 years, providing better clarity and reducing legal disputes.

Income Exemptions Shifted to Schedules:

To simplify the Act, income categories that are not taxable are now listed in dedicated schedules instead of being mixed in the main sections.

Clear Tax Treatment for Employee Stock Options (ESOPs):

The new bill provides a well-defined tax framework for ESOPs, addressing a key issue that previously led to disputes.

Expected Implementation from April 1, 2026:

Once passed, the new Income Tax Bill, 2025 is expected to come into effect from the financial year 2026-27.

Call now to connect with business.

12/12/2024

Uniform tax rate: Under the new Union Budget 2024, taxpayers are now subject to a uniform long-term capital gains tax rate of 12.5% on all financial and non-financial assets. Previously, the tax rate for such gains was 10%, while non-equity assets faced a rate of 20%.

15/11/2024

Major Changes in Direct Tax Code 2025

1.
Removal of Assessment and Previous Year Concepts:

The code removes the terms “Assessment Year” and “Previous Year”.
Only the term- “Financial Year” will be applicable for tax filing.

2.
Capital Gains Tax Changes:
Capital gains will be taxed as regular income.

Short-term gains on financial assets will be taxed at 20% (up from 15%),

while long-term gains will be taxed at 12.5% (down from 20%).

3.
Simplified Residential Status:
Taxpayers will be classified as either residents or non-residents, eliminating the RNOR (Resident but Not Ordinarily Resident) category.

4.
New Income Category Names:

“Income from Salary” is now called “Employment Income,”

and
“Income from Other Sources” is renamed “Income from Residuary Sources.”

5.
Expanded Tax Audit Roles:

Company Secretaries (CS) and Cost and Management Accountants (CMA) may now be allowed to conduct tax audits, which was previously limited to Chartered Accountants (CAs), making tax audits more accessible.

6.
Unified Company Tax Rates:

Both domestic and foreign companies will now pay the same tax rate, making compliance easier and encouraging foreign investment.

7.
TDS and TCS on Most Income:
Under the new tax system, Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) will apply to nearly all types of income.

This ensures taxes are paid more regularly.

The TDS rate for many payments will drop from 5% to 2%.

For e-commerce operators, the TDS rate will significantly decrease from 1% to 0.1%, offering relief to taxpayers and simplifying compliance for e-commerce businesses.

8.
Fewer Deductions and Exemptions
Most deductions and exemptions will be removed, streamlining tax filing.

However, the standard deduction for salaried employees in the new tax regime has increased to ₹75,000, a 50% rise.

Call now to connect with business.

28/08/2024

Income Tax Budget

₹0- ₹3 lakh - Nil;

₹3-7 lakh - 5% ;

₹7-10 lakh - 10% ;

₹10-12 lakh - 15%;

12-15 lakh - 20%; and

Above ₹15 lakh - 30%

28/08/2024

Income Tax Budget 2024 Highlights: Finance Minister Nirmala Sitharaman presented Budget 2024 on July 23. The FM announced a marginal income tax relief for the middle class. Sitharaman raised the standard deduction -- a flat deduction from the total salary earned by an employee in a year before calculating the applicable income tax rate -- by 50 per cent to ₹75,000 and tweaked tax slabs for taxpayers opting for the new income tax regime.

13/05/2024

The due date to file an Income tax return is 31st July 2024 for individuals and non-audit cases. Non Salary person send your Income statement. Salary person send your Form 16 for IT filing work.

25/03/2024

Income tax slabs for FY 2024-25 (AY 2025-26), FY 2023-24 (AY 2024-25) under the new tax regime
The income tax slabs in new tax regime will remain unchanged for FY 2024-25 (AY 2025-26). No changes have been announced in the interim budget. The last year's budget (Budget 2023) announced changes in the income tax slabs in the new tax regime. The changes were made to make the new tax regime more attractive for individual taxpayers. Currently, new tax regime has basic exemption limit of Rs 3 lakh. This was hiked in last year's budget from Rs 2.5 lakh by Rs 50,000.

Here are the income tax slabs under new tax regime.
Income tax slabs under new tax regime for FY 2023-24, FY 2024-25
Income tax slabs (Rs)
Income tax rate (%)
From 0 to 3,00,000
0
From 3,00,001 to 6,00,000
5
From 6,00,001 to 9,00,000
10
From 9,00,001 to 12,00,000
15
From 12,00,001 to 15,00,000
20
From 15,00,001 and above
30
Changes announced in the new tax regime in Budget 2023
Given below are the changes that were announced in the new tax regime in Budget 2023 for FY 2023-24:
New income tax regime is the default tax regime. Thus, unless an individual specifically opts for the old tax regime, their incomes will be taxed at the new tax regime's slabs and rates
Rebate under Section 87A increased to taxable income of Rs 7 lakh (tax rebate of 25,000) from 5 lakh (tax rebate of Rs 12,500). This effectively means that any individual opting for the new tax regime with taxable income of up to Rs 7 lakh will not pay any taxes. Earlier, this tax rebate was available till taxable income of Rs 5 lakh
Basic exemption limit hiked to Rs 3 lakh from Rs 2.5 lakh in the new tax regime
The number of income tax slabs under the new tax regime reduced to five from six
Standard deduction of Rs 50,000 introduced under the new tax regime for salaried and pensioners
Family pensioners can also claim standard deduction of Rs 15,000 under the new tax regime
Highest surcharge rate of 37% reduced to 25% under the new tax regime

18/03/2024

What’s New in Income Tax
Interim Budget 2024 -

The budget maintained the existing tax rates for both direct and indirect taxes.
Taxpayers with income up to Rs 7 lakh have no tax liability.
Finance Minister Nirmala Sitharaman also withdraws 'tax dispute' up to Rs 25,000 for the period up to the financial year 2009-10, Rs 10,000 for financial years 2010-11 to 2014-15.
Budget 2023 Updates

For individuals with income up to Rs 7 lakh, a tax rebate has been introduced in the New Tax Regime. This implies that you do not have to pay tax if your taxable income is below Rs 7 lakh under the new tax regime.
The new tax slabs under the new tax regime will be:
Income Slabs

Tax Rates

up to Rs 3 lakh

Nil

Rs 3 lakh- Rs 6 lakh

5%

Rs 6 lakh-Rs 9 lakh

10%

Rs 9 lakh-Rs 12 lakh

15%

Rs 12 lakh- Rs 15 lakh

20%

Above Rs 15 lakh

30%

Under the new tax regime, salaried employees and pensioners can claim a standard deduction of Rs 50,000.
Under the new tax regime, the highest surcharge has been reduced to 25% from 37% for people earning more than Rs 5 crore. This move brings down their tax rate from 42.74% to 39%.
The new IT regime will be the default tax regime. However, taxpayers can opt out of the new regime before the due date for filing the IT returns for the respective assessment year.
Leave encashment for non-government employees has been increased to Rs 25 lakh from Rs 3 lakh.
TDS rate reduced to 20% from 30% on withdrawal of EPF.

07/02/2024

FM Nirmala Sitharaman presented the Interim Budget in the Lok Sabha today. Earlier in the morning, the Union Cabinet met and approved the Budget.

Also Read |Budget 2024 live updates

In her Budget speech, Ms. Sitharaman highlighted the Centre’s various programmes for women, youth and poor. She noted that the Indian economy has seen a “profound” transformation, and that the Government carried out structural reforms. She said the government’s focus was on four major ‘castes’ — women, youth, poor and farmers. “The country progresses, when they progress,” she said.

Here are highlights:

FM Sitharaman said that the Government pulled 25 crore people out of poverty in ten years. She noted that government provided free food for 80 crore people through various schemes.
Direct Benefit Transfers of Rs. 34 lakh crore through PM Jan Dhan Yojana accounts has led to savings of ₹2.7 lakh crore.
The PM Vishwakarma Yojana scheme provides end-to-end support to artisans. The government provided credit assistance to 78 lakh street vendors under the PM-SVANidhi scheme. 30 crore Mudra Yojana loans disbursed to women entrepreneurs.
Upskilling and reskilling was a focus for the government, and over 1.4 crore youth were trained under the Skill India Mission. 43 crore loans sanctioned under PM Mudra Yojana. The Government will also expand the ‘Lakhpati Didi’ scheme to empower rural women and boost the rural economy.
The Government highlighted the role of the India-Middle East-Europe Economic Corridor can play in world trade.
The Government will pay more attention to developing the East to fuel India’s growth.
Inflation has moderated an is within the target band (2%-6%).
Economic growth has picked up and the average real income of people increased by 50%.
The Government will subsidise the construction of 30 million affordable houses in rural areas.
The Centre will encourage cervical cancer vaccination and combine maternal and child health care schemes into one comprehensive programme.
The Ayushman Bharat scheme will be expanded to all ASHA workers, Anganwadi workers and helpers.
Government to encourage ‘Nano DAP’ for various crops and to expand its use for all agro-climactic zones.
It will also formulate policies to support dairy farmers and defeat the Foot and Mouth Disease.
The government will formulate a strategy achieve AtmaNirbharta (self-reliance) for oilseeds. This will cover research for high-yielding varieties, procurement, value addition and crop insurance.
A new department — Matsya Sampada — to be set up to address the needs of fishermen.
40,000 normal rail bogeys will be converted to Vande Bharat standards. Government to enhance safety, convenience and safety of passengers. Government to focus on metros in a bid to provide transit-oriented development
The Government has announced several schemes to turn Net Zero by 2070. This includes providing funding to harness offshore wind energy generation for an initial capacity of 1 Giga Watt, procuring biomass aggregation machinery and expanding the e-vehicle sector by encouraging more manufacturing and charging infrastructure.
Spends on capital expenditure have been increased to ₹11.11 lakh crore for 2024-25. The Government will continue on path of fiscal consolidation to reduce fiscal deficit to 4.5% in 2025-26.
The Government proposed to maintain the same tax rates for direct and indirect taxes, including import duties.
The Government borrowings on a gross and net basis for 2024-25, at Rs. 14.13 lakh crore and Rs. 11.75 lakh crore, respectively, lower than 2023-24.

20/01/2024

Budget 2023 Updates

A tax rebate has been introduced in the New Tax Regime on income upto Rs 7 Lakhs. This implies that you do not have to pay tax if your taxable income is below 7 lakhs under new tax regime.
The new tax slabs under the new tax regime will be:
Income Slabs Tax Rates
up to Rs 3 lakh Nil
Rs 3 lakh- Rs 6 lakh 5%
Rs 6 lakh-Rs 9 lakh 10%
Rs 9 lakh-Rs 12 lakh 15%
Rs 12 lakh- Rs 15 lakh 20%
Above Rs 15 lakh 30%
The standard deduction of Rs 50,000 has been introduced under the new tax regime for salaried taxpayers.
The highest surcharge under the new tax regime has been reduced to 25% from 37% for people earning more than Rs 5 crore. This move brings down their tax rate from 42.74% to 39%.
The new IT regime will be the default tax regime. However, taxpayers can choose the old regime.
Leave encashment for non-government employees has been increased to Rs 25 lakh from Rs 3 lakh.
TDS rate reduced to 20% from 30% on withdrawal of EPF.