HR & Associates

27/05/2025

*CBDT has decided to extend the due date of filing of ITRs, which are due for filing by 31st July 2025, to 15th September 2025.*

15/05/2025

01/02/2025

Budget Speech Summary: Tax Reforms and Key Proposals

Vision and Reforms for a Developed India
• The government aims to simplify taxation as part of its broader vision for Vikasith Bharat (Developed India).
• A new Income Tax Bill will reduce the complexity of current laws, featuring clearer and more concise provisions, cutting both chapters and words by half.
• Focus areas include good governance, reduced litigation, tax certainty, and responsive policymaking, guided by the principle of sabka saath, sabka vikas.

Tax Rate Structure Revisions
1. No Tax on Income Up to ₹12 Lakh
• Individuals earning up to ₹12 lakh annually (₹1 lakh per month) will pay no income tax under the new tax regime.
• For salaried taxpayers, due to the ₹75,000 standard deduction, this threshold is ₹12.75 lakh.
2. Revised Tax Slabs and Rates
• 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%
3. Tax Rebates and Benefits
• Taxpayers earning up to ₹12 lakh (excluding special income like capital gains) will receive a rebate, resulting in zero tax payable.
• Examples of benefits from the new regime:
• Income ₹12 lakh: ₹80,000 tax benefit (100% reduction from existing rates).
• Income ₹18 lakh: ₹70,000 tax benefit (30% reduction).
• Income ₹25 lakh: ₹1,10,000 tax benefit (25% reduction).
• These reforms aim to increase disposable income, promoting household consumption, savings, and investments.
4. Revenue Impact
• An estimated ₹1 lakh crore in direct taxes and ₹2,600 crore in indirect taxes will be foregone as a result of these proposals.

Other Major Tax Proposals
1. TDS and TCS Reforms
• Reduction in the number of TDS rates and thresholds for simplification.
• Increase in tax deduction limits:
• Senior citizens’ interest deduction limit raised from ₹50,000 to ₹1 lakh.
• TDS threshold for rent payments increased from ₹2.4 lakh to ₹6 lakh annually.
• TCS threshold for remittances under RBI’s Liberalized Remittance Scheme (LRS) increased from ₹7 lakh to ₹10 lakh.
• TCS exemption for educational remittances funded by loans from specified financial institutions.
• Higher TDS provisions to apply only to non-PAN holders.
2. Voluntary Compliance and Updated Returns
• Time limit for filing updated returns extended from 2 to 4 years.
• The government highlights the success of the updated return facility introduced in 2022, with nearly 90 lakh taxpayers voluntarily updating their incomes.
3. Charitable Trusts and Compliance Relief
• Registration period for small charitable trusts extended from 5 to 10 years.
• Provisions to prevent disproportionate penalties for minor compliance errors.
4. Property and Transfer Pricing Reforms
• Taxpayers can now claim the benefit of two self-occupied properties without conditions.
• Introduction of a 3-year block period scheme for determining arm’s length pricing of international transactions.
• Expansion of safe harbor rules to reduce litigation and provide tax certainty in international taxation.
5. Senior Citizen Benefits
• Exemption for withdrawals from National Savings Scheme (NSS) accounts with no interest accrual after August 29, 2024.
• Extension of similar benefits to NPS (Vatsanya) accounts.
6. Digitalization and Dispute Resolution
• Implementation of paperless, digital processes for tax orders and appeals.
• The Vivaat Se Vishwaas dispute resolution scheme has seen 33,000 taxpayers settle disputes.

Measures for Investment and Employment Promotion
1. Presumptive Taxation for Non-Residents
• A new presumptive taxation scheme for non-residents providing services to electronics manufacturing facilities in India.
2. Safe Harbor for Electronics Manufacturers
• Tax certainty for non-residents storing components for supply to electronics manufacturers.
3. Tonnage Tax Extension
• Extension of the tonnage tax scheme to inland vessels registered under the Indian Vessels Act 2021 to promote inland water transport.
4. Startup Ecosystem Support
• Extension of startup benefits to companies incorporated before April 1, 2030, by an additional five years.
5. IFSC Investment Incentives
• Specific benefits proposed for ship leasing units, insurance offices, and treasury operations in the International Financial Services Centre (IFSC).

31/01/2025

Some transactions limits which can create troubles..Contact us for further consultations on 9695615067, 8174888748

22/01/2025

30/03/2023

Before 31st March ends – GST Points to be kept in Mind

1) Billing Series: New billing series for FY 23-24 w.e.f. 1st April 2023 should be started.

2) E-Invoicing: Businesses with an annual aggregate turnover of more than Rs.10 crore, as calculated in any preceding financial year from 2017-18 up to 2022-23, must begin generating e-invoices from 1st April 2023.

3) Letter of Undertaking (LUT): All the exporters or who supplies goods or services to SEZ without payment of GST should apply for LUT in form GST RFD 11 for FY 2023-24.

4) Composition Scheme: Small taxpayer having turnover less than 1.5 crore should calculate tax liability under composition scheme and normal option, and accordingly may opt for the option which is beneficial to them considering all the conditions.

5) Quarterly Return Monthly Payment (QRMP) Scheme: Taxpayers having Turnover below Rs 5 Crores shall have an option to select the frequency of GST return i.e., QRMP Scheme filing for FY 2023-24 till 30th April 2023.

6) Reconciliation of turnover between GSTR1 and GSTR 3B and books: Prepare and reconcile the turnover as reported in GSTR1/GSTR 3B with books of accounts for FY 2022-23.

7) Reconciliation of Outward liability between GSTR 1 and GSTR 3B and books: Compile and reconcile the amount of taxes paid in GSTR 1 and GSTR 3B filed during the FY 2022-23 with books of accounts and pay the tax if there is any shortfall vide filing DRC 03 to avoid the litigation and penalty.

8) Reconciliation of ITC between books and GSTR 3B and GSTR 2B: Prepare the yearly reconciliation of ITC accounted in books and ITC availed in GSTR 3B during the FY 2022-23 and reconcile the same with GSTR 2B. If transactions are not populated in GSTR 2B, the taxpayer should follow up with suppliers to furnish/report transactions in their GSTR 1 with payment of taxes in GSTR 3B. Further if ITC has been availed and the transactions not reflected in GSTR 2B then ITC should be reversed.

9) Reversal of ineligible ITC: Identify the ineligible ITC u/r 42,43, etc. (Blocked credit/ ITC on exempt supplies) already availed in GSTR 3B of the FY 2022-23 and reverse/pay the same along with interest thereon to avoid the litigation and demand of interest & penalty in future. Further, note that no interest leviable on reversal of wrongly availed credit but not utilized.

10) Reversal of ITC if Payment not done to suppliers within 180 days: Prepare and Review that any payment to suppliers is not pending beyond 180 days from the date of issuance of supplier’s invoice to avoid reversal of ITC u/s 16(2).

11) Payment of RCM: Taxpayer should check and rework RCM liability as per books of accounts with RCM paid in GSTR 3B. Further, RCM as per GSTR 2B should be checked.