Choosing The Right Checking Account For Your Needs

Choosing the Right Checking Account for Your Needs

• New Income Tax Regime: Higher Exemptions, Simplified Slab
  Individuals earning up to 12 lakh annually are now fully exempt from income tax. Those earning 25 lakh will
  benefit from a tax reduction of 1.1 lakh under the new regime.
   
• Higher thresholds, Lower Burden
  The TCS threshold under the Liberalize Remittance Scheme (LRS) has been raised from 7 lakh to 10 lakh.
  The TDS threshold on rent has been increased to 6 lakh, reducing compliance burdens.
   
• Education & Start-ups Get a Boost
  TCS on education loans up to 10 lakh (from specified financial institutions) has been removed, making higher
  education financing easier.
  The period of incorporation for start-ups to avail tax benefits has been extended by five years, a remarkable step towards entrepreneurship.
   
• Compliance Made Easier
  Taxpayers can now declare the value of two self-occupied properties as nil, reducing tax liability on personal real
  estate.
  The deadline to file updated tax returns has been extended from 2 years to 4 years, providing greater flexibility.
  Late payment of TCS will no longer be treated as a criminal offense, easing concerns for businesses.
   
• Major Customs Reforms & Duty Adjustments
  Seven tariff rates to be eliminated, continuing the rationalization from previous budgets.
  82 tariff lines currently subject to cess will now be exempt, reducing costs for businesses.
   
• Electronics & Manufacturing
  BCD increased from 10% to 20% to promote domestic manufacturing.
  Reduced to 5%, supporting local display panel assembly.
   
• EV & Critical Minerals Incentives
  12 more minerals crucial for advanced technology and energy sectors will now be duty-free.
  35 additional capital goods for electric vehicle production have been added to the BCD exemption list.
   
• Key Financial & Tax Reforms at a Glance
  Foreign Direct Investment (FDI) in the insurance sector has been increased from 74% to 100%, boosting foreign
  investment and competition.
  A new Income Tax Bill will be introduced next week, potentially reshaping the tax landscape.
  A nationwide Central KYC registry will be rolled out in 2025 to streamline financial compliance and reduce
  redundancy for individuals and businesses.
   
• GST Exemption on Voucher Transactions
  Taxpayers are no longer required to pay GST on voucher transactions, as they are neither supply of goods nor
  services, following the omission of Section 12(4) and 13(4) of the CGST Act, 2017.
   
• Retrospective Amendment to Section 17(5)(d) of CGST Act
  Taxpayers will benefit from the retrospective amendment to Section 17(5)(d) of the CGST Act, 2017, which substitutes "plant or machinery" with "plant and machinery", effective from July 1, 2017, overruling the Safari Retreat Supreme Court judgment.
   
• Amendment to Section 20 of CGST Act for ITC Distribution
  Taxpayers will benefit from the amended Section 20(1) and (2) of the CGST Act, 2017, which enables ISDs to distribute ITC for inter-state supplies, on which tax is paid under RCM, effective from April 1, 2025.
   
• Reduction of Tax Liability on Credit Notes Allowed Only Upon Recipient's Reversal of ITC.
  The Proviso to Section 34(2) is amended to explicitly require recipients to reverse corresponding ITC for credit notes to enable suppliers to reduce tax liability.
   
• Mandatory Appeals
  Taxpayers will be required to make a mandatory pre-deposit of 10% of the penalty amount for appeals involving only penalty disputes.
   
• Section 39 of CGST Act, 2017 Amended to Impose Restrictions and Conditions on GST Return Filing
  Taxpayers will be subject to certain conditions and restrictions for filing GST returns, as prescribed by the government.
   
• Introduction Mechanism of Track and Trace Mechanism
  A new Section 148A is inserted to enable a Track and Trace Mechanism for specified commodities.
  Section 122B is introduced to prescribe penalties for non-compliance with Track and Trace Mechanism provisions.
   
• Exemption from GST on Supply of Goods from SEZ/FTWZ
  A new entry (aa) in paragraph 8 of the GST Act exempts from GST the supply of goods warehoused in a Special Economic Zone (SEZ) or Free Trade Warehousing Zone (FTWZ) before clearance for exports or to the Domestic Tariff Area.
  The amendment is retrospective (effective from July 1, 2017) and does not allow refund of tax already paid for these transactions.
   
• Amendments to Section 38 of the CGST Act, 2017
  The Section 38 is amended to omit "autogenerated" and enable prescription of additional details in input tax credit statements.

 

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