In the budget proposals for 2024 and 2025, Finance Minister Nirmala Sitharaman announced a review of the Income Tax Act of 1961.
“I am now announcing a comprehensive review of the Income-tax Act of 1961,” the statement reads. The Act is meant to be clear, concise, and simple to read and comprehend.
Taxpayers will gain tax certainty as a result of a reduction in disputes and litigation as a result of this. Additionally, it will result in a reduction in litigation-related demand. It is proposed to be finished in a half year,” she said in her Spending plan discourse.
“A start is being made in the Money Bill by working on the expense system for good cause, TDS rate structure, arrangements for reassessment and search arrangements and capital increases tax collection,” she said.
It is proposed that the two tax exemption systems for charities be combined into one. The 5% TDS rate on numerous installments is being converged into the 2% TDS rate and the 20% TDS rate on repurchase of units by common assets or UTI is being removed.
It is proposed to reduce the e-commerce operators’ TDS rate from one percent to 0.1%. “Additionally, credit of TCS is proposed to be given in the TDS to be deducted from pay.
Further, I propose to decriminalize delay for installment of TDS up to the due date of recording articulation for the equivalent. The Finance Minister added, “I also intend to provide a standard operating procedure for TDS defaults and simplify and rationalize the compounding guidelines for such defaults.”
