No changes in Tax Regime both in Income Tax and GST, have been proposed.
Income Tax amendments:
⏩1. Time limit for tax incentives for eligible startups, units in IFSC and certain Sovereign Welfare and Pension Funds, expiring in March 2024, have been extended for one more year till 31.3.2025.
⏩2. Petty Disputed Income Tax Demands upto Rs 25000 upto FY 2009-10 and of upto Rs 10,000 for FYs from 2010-11 to 2014-15, to be waived off by the Government. This is expected to benefit around 1 crore taxpayers.
⏩3. The recent changes in TCS on LRS remittances and foreign tour packages announced in various press releases, have been incorporated in Legislative section 206C(1G), through amendments in the existing language of this section. There is no reduction in TCS from 20% to 5%.
⏩4. The time limit for incorporation of Faceless Scheme for Income Tax Appellate Tribunals has been extended for one more year till 31.3.2025.
⏩5. The threshold time limit for the benefit of reduced corporate tax rate u/s 115BAB of 15% plus surcharge, in case of a newly setup manufacturing Companies up to 31.3.2024, has unfortunately not been extended further. So new manufacturing Companies which are incorporated on or after 1.4.2024 will be taxed at 22% and not 15%, if they opt for the new regime.
