Kolkata: In a Budget, tax proposals contain the section that attracts the maximum attention of common individuals. Last year, FM Nirmala Sitharaman provided
significant income tax reliefs in the form of change sin both slabs and rates. This year she didn’t offer any such big change. However, there are a few which an individual should be aware of. Let’s have a look at these.
ITR filing deadlines
There has been minor changes in the ITR filing deadlines for individuals. Those who file ITR-1 and ITR-2 will have to abide by the July 31 deadline. But individuals with business income that do not need to be audited and trusts can file their ITRs till August 31 from the next financial year.
Revised ITR deadline
The FM has extended the deadline for filing revised income tax returns by three months. While the earlier deadline was till Dec 31, from the next financial year, the new deadline will be March 31. But the taxpayer has to pay a nominal fee of Rs 5,000. This fee has to be paid if the revised ITR is not filed by Dec 31. But the fee will be only Rs 1,000 if the taxable income does not exceed Rs 5 lakh.
New Income Tax Act, 2025
The New Income Tax Act, 2025 will come into effect from April 1, 2026, FM Sitharaman has announced. The ITR forms and new tax-related rules will be notified soon, she has said.
Reduced TCS on tour packages abroad
Tax collected at source will be reduced on overseas tour packages. Replacing 5% and 20% tax rates a uniform 2% rate will be applicable. Also, TCS on self-financed foreign education and overseas medical treatment for expenditure in excess of Rs 10 lakh is also being brought down to 2% from 5%.
Foreign Asset Disclosure Scheme
A one-time disclosure scheme for six months has been announced for foreign asset disclosure. But this will be applicable to small taxpayers such as students, professionals, technology employees and returning or relocating individuals. This will apply to foreign income or assets only up to Rs 1 crore. This can be regularised by one-time payment of 30% of fair-market value of assets, or 30% of undisclosed income and 30% in lieu of penalty. There will be immunity from prosecution too. This will also be applicable to those who paid income tax but failed to report related foreign assets valued up to Rs 5 crore. It can be regularized by paying a fee of Rs 1 lakh. Again, there will be no penalty and prosecution.
On foreign non-immovable assets
There is another category of beneficiaries who failed to disclose non-immovable assets abroad. If valued less than Rs 20 lakh, there will be immunity from prosecution. It is being applied in retrospect from October 1, 2024.
Deducting TDS using PAN-based challan
For the sale of immovable property involving NRIs, resident buyers can deduct and deposit tax deducted at source (TDS) using challans based on PAN.
Lower TDS certificates for small taxpayers
Steps are being taken for fully automated, rule-based approval for nil or lower TDS certificates for small taxpayers. These will eliminate the need for any interaction with tax officers and ensuring faster processing.
PROIs can invest in Indian equity
Individuals who are categorised as persons resident outside India, can now invest in listed Indian stocks through PIS or Portfolio Investment Scheme. Limits on individual investment raised from 5% to 10%.
Exemption on foreign-sourced income
Exemption on foreign-sourced income has been declared for experts visiting India and this exemption will be for up to five years. The objective of the scheme: attracting global talent to India.
