#Union Budget

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Read Our Blog to know what are the key changes in the new Union Budget 2023. What are the major changes in Tax Regime. 

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Budget 2025: Why standard deduction becomes a topic of high interest before every budget

India Budget 2025: The matter of standard deduction generates high interest among budget watchers every year, and year 2025 is going to be no different. There is a reason why people demand standard deduction before every Budget. If you are a businessperson, you can bring down your taxable income by deducting all provable business-related expenses. Some people push the limits with these…

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Why Does India's Financial Year Start from 1st April?

India’s financial year runs from 1st April to 31st March, a timeline steeped in historical significance and practical considerations.

This cycle was inherited from British colonial rule, designed to align with India’s agricultural seasons and facilitate tax collection post-harvest.

Additionally, it synchronizes with the Union Budget, announce in February, ensuring smooth economic planning and execution.

Globally, this timeline aligns with reporting by organizations like the World Bank and IMF, enhancing India’s financial credibility.

Want to dive deeper into the origins and impact? Read the full blog here!

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Deep Dive into India's Budget 2024

Get an in-depth look at the key updates and provisions across income tax, GST, MSME support, and more, to stay informed and make strategic decisions. Income Tax: Rates, Deductions, and Exemptions Tax Rates India’s income tax structure features four key tax slabs, with rates ranging from 0% for income up to ₹3,00,000 to 30% for income above ₹10,00,000. Senior citizens aged 80 and above enjoy a…

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INDIA bloc to protest against Union Budget in Parliament today

Opposition INDIA bloc MPs will stage a protest in Parliament on Wednesday against the Union Budget.

The bloc has termed the Union Budget as “discriminatory” against the opposition-ruled states.

The decision to protest was taken at a meeting of the bloc on Tuesday after the Budget was tabled by the Union Finance Minister.

Source: bhaskarlive.in

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Union Finance Minister Nirmala Sitharaman presented the Union Budget 2024 today. Here are the key highlights:

Support for States: Andhra Pradesh and Bihar receive significant allocations.

Tax Changes: Long Term Capital Gains tax increased from 10% to 12.5%.

MSMEs: New mechanisms for credit access for stressed MSMEs.

Tribal Schemes: Pradhan Mantri Janjati Unnat Gram Abhiyan announced.

Urban Development: Digitization of urban land records with GIS mapping.

Income Tax: Increased standard deduction and revised tax slabs.

Climate Finance: Development of a climate finance taxonomy.

Space Economy: Rs 1,000 crore venture capital fund.

Customs Duty: Reduced duty on gold, silver, and platinum.

Housing: Rs 10 lakh crore for Pradhan Mantri Awas Yojana-Urban 2.0.

Financial Sector: New strategy document for the next five years.

Tourism: Major allocations for Bihar's tourism development.

Energy and Infrastructure: Funds for small modular nuclear reactors and rural connectivity.

You can read more deatil in this article : The Union Budget 2024

#currentaffairs #unionbudget2024 #Finance Nirmala Sitharaman

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Funds 2024: Will make up for income forgone, says FM Nirmala Sitharaman | Funds 2024 Information

5 min learn Final Up to date : Jul 24 2024 | 12:43 AM IST Union Finance Minister Nirmala Sitharaman, alongside together with her group of bureaucrats, delved into the fantastic print of the 2024-25 Funds paperwork in a press convention, detailing the federal government’s street map on bringing down the debt-to-GDP ratio and daring tax measures. Ruchika Chitravanshi, Shrimi Choudhary, and Harsh…

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Big Announcements of Indian Budget 2024  in Short

If you are busy whole day and dint had time to understand the Indian Budget you can read it below in shorts Big Announcements in Short #Manufacturing and #Services•Will make MSME to compete globally•Credit Guarantee for MSME.•Build In House capability for MSMEs. •Paradigm change in New Credit assessment model for MSME for credit eligibility. •SMA Accounts for MSME in Stress. •MUDRA Loans: limit…

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Exploring the 2024 Union Budget: International Tax Insights

What are the key details that taxpayers should be aware of regarding the 2024 tax changes?

Key Highlights

The Finance Minister of India presented the Union Budget 2024 on 23 July 2024. The Budget includes several positive proposals, such as tax incentives for small businesses, increased funding for infrastructure development, and measures to support sustainable energy initiatives. Thus, the purpose of these suggestions is to boost the economy, e-commerce growth in India and tackle several issues. 

The Income Tax Act is due for a review, and the government has suggested much-needed changes, which are long overdue.

The base corporate tax rate for nonresident corporate taxpayers has been reduced from 40% to 35%.

The removal of angel tax provisions and the introduction of Equalisation Levy 2.0 will have a significant impact and are considered game changers.

The rationalization of the TDS Regime is a positive step forward and is sure to benefit the country's overall growth.

The removal of indexation to compute cost while calculating gains will significantly impact the capital gains tax regime. With the removal of the buyback tax, the tax incidence will now shift to the recipient.

The government has restated its commitment to simplifying processes, rationalizing GST rates, and expanding GST coverage to all sectors.

Customs duties will be waived for key sectors like healthcare, solar, critical minerals for renewable energy, and high-tech electronics. Additionally, there will be a reduction in customs duties for mobile phones, gold, precious metals, and the leather and textile industries.

Introduction of a one-time tax settlement scheme called Vivad se Vishwas (VSV) to help quickly resolve ongoing tax disputes.

The government of India is currently engaged in modernizing its international tax policies and administration. This initiative encompasses the implementation of a variety of tax incentives and rate reductions, as well as the substantial digitalization of critical processes.

Tax Insights: Introduction

During the presentation of the Union Budget for 2024-2025, the Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman underscored the budget's emphasis on several identified priorities aimed at expediting the journey toward the goal of Viksit Bharat.

The Finance Minister highlighted the government's ongoing efforts to simplify taxes, improve taxpayer services, and reduce legal disputes. Thus, the taxpayers have responded positively to these efforts.

In the fiscal year 2022-23, Smt. Sitharaman highlighted that 58 percent of corporate tax revenue was contributed by the simplified tax regime. Additionally, over two-thirds of taxpayers chose to adopt the new personal income tax regime based on the data available.

During the budget presentation, the Finance Minister also announced a number of attractive benefits designed to provide tax relief to salaried individuals and pensioners who choose the new tax regime. The Union Budget for the fiscal year 2024-2025 has incorporated a range of provisions and amendments, underscoring the government's dedication to establishing a streamlined and effective tax framework.

What is the major objective of the International tax sector?

International taxation serves various objectives, such as ensuring fair distribution of tax burdens, preventing the illegal avoidance of taxes, fostering economic growth, and facilitating international collaboration. However, the following are the primary purposes of the International tax sector.

Preventing Double Taxation

Encouraging International Trade and Investment

Preventing Tax Evasion and Avoidance

Equitable Distribution of Taxing Authority

The encouragement of International collaboration

Union Budget 2024 International tax updates

Following are the International tax sector updates:

Rationalisation of taxes and rates 

E-commerce operators from foreign countries, who supply or facilitate the e-commerce supply of goods or services into or relating to India, are currently burdened with India’s digital service tax, the equalisation levy, which is imposed at a significant 2 percent of the gross consideration. The impending discontinuation of this tax will bring a welcome relief and is scheduled to take effect from 1 August 2024.

From fiscal year 2024–2025, foreign companies will have a reduced corporate tax rate of 35 percent, down from 40 percent.

Relief/beneficial provisions 

Angel tax is a tax that private companies have to pay when they issue shares to someone at a price higher than the fair market value of the shares. The government's proposed Finance Bill aims to get rid of angel tax starting from April 1, 2024. This will be a great relief for companies that receive investments, including those from foreign sources.

The safe harbour rules will be expanded, and the transfer pricing assessment procedure will be streamlined.

IFSC-regulated finance companies may be exempt from thin capitalization rules as long as they meet certain conditions. This would put them on the same level as banks, some NBFCs, and insurance companies.

Other changes 

A new presumptive taxation regime is being considered for cruise ship operations conducted by non-residents in India, effective from the fiscal year 2024–25. This regime would deem 20% of the specified gross receipts as business income. Additionally, Cruise Ship Operators (CSOs) would be exempt from the presumptive taxation regime for non-resident shipping businesses. Specific group companies of these CSOs receiving lease rentals would also be eligible for tax exemption until the fiscal year 2029–30.

With effect from 1st October 2024, a significant change has been implemented in the tax treatment related to share buybacks by domestic companies. The tax burden has now been transferred from the company to the shareholders. The consideration received by the shareholder will be taxable as a "dividend" at applicable tax rates without any deduction for expenses, potentially resulting in a capital loss. Shareholders must proactively consider tax treaty benefits or dividend deductions available to them.

Before April 1, 2024, if a taxpayer transferred a capital asset through a gift, will, or irrevocable trust, it was not considered a "transfer" under the Income Tax Act. Therefore, no capital gains tax was applied to the transferor. Starting April 1, 2024, this rule will only apply to transfers by individuals or Hindu undivided families. This means that gifts or transfers to an irrevocable trust of any capital asset by other taxpayers will be subject to capital gains tax.

Procedural matters 

Currently, there is a time limit of seven years to pass an order deeming a person to be in default for failure to deduct or deposit TDS for resident payees. However, there is no such time limit for non-resident payees. Similarly, no time limit has been prescribed for cases of failure to collect or deposit tax at source (TCS). It is proposed to provide a common limitation period of six years for passing such an order for both resident and non-resident payees. A similar timeline has been prescribed for passing orders in the case of TCS provisions.

Effective April 1, 2025, a proposal to streamline compliance for non-resident liaison offices and introduce penalties for delayed compliance will take effect. Currently, the requirement dictates that the statement of activities must be filed within 60 days from the end of the fiscal year. The proposed changes will entail the specification of new timelines through established rules.

Applications for advance rulings that have been transferred from the Authority for Advance Rulings to the Board for Advance Rulings may be withdrawn by October 31, 2024, if they have not already been disposed of.

Non-locals and international businesses can settle ongoing legal disputes through the new conflict resolution program called the Direct Tax Vivad Se Vishwas Scheme 2024.

Last words

The national, state, and union territory governments of India are actively promoting foreign investment to drive economic transformation. While this presents promising opportunities, it's important for investors to approach this with caution, as both risk and opportunity are closely intertwined in India's investment landscape.

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Budget Boosts Youth Employment and Rural Growth: Amarpreet Singh Kale

New Economic Plan Targets Skill Development and Infrastructure Improvement The Union Budget introduces ambitious initiatives for youth empowerment, rural connectivity, and housing, aiming to drive India’s overall economic progress. JAMSHEDPUR – The recently unveiled Union Budget has been praised as a comprehensive plan focusing on youth empowerment and national development. Former BJP state…

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Navigating India's Evolving Economic Landscape

Dear Readers, Budget 2024 unveils strategic reforms focused on simplifying taxation, boosting entrepreneurship, and enhancing transparency. Join us on our social media channels for updates. Regards Gyan Ka Bhandaar🧠

The latest budget proposes a series of strategic reforms aimed at streamlining the Indian economy, empowering businesses, and fostering inclusive growth. From simplifying the income tax regime to enhancing support for MSMEs, this comprehensive plan seeks to unlock new avenues for prosperity and development across the nation. Type your email… Subscribe Highlights from Budget 2024 1. Corporate…