Here follows details of the various measures that matter:
Bigger purse for taxpayers: Free to spend New tax regime frees individuals from the maze of deductions, exemptions & taxsaving investments. They will no longer be forced to invest to save tax.
Relief for pros: Presumptive tax
Professionals can go for presumptive taxation if gross receipts do not exceed Rs 75 lakh provided that not more than 5% of gross receipts are received in cash.
Tax facts: Budget math
Only about 15% of budget outgo was to be funded from direct income tax receipts.
Interest on listed debentures: TDS exemption removed
The budget has removed the exemption from TDS on payment of interest on listed debentures. This followed instances of under-reporting of interest income by recipients due to the TDS exemption.
National financial info registry: For efficient credit flow
A new national financial information registry will soon be in the works that will serve as the central repository of financial and ancillary information. This is aimed at facilitating efficient flow of credit and would be backed by a legislation in consultation with RBI which regulates similar institutions.
Shadow on shine: Expensive jewellery, cheaper diamonds
Prices of imported imitation and gold jewellery, as well as locally-made silver jewellery are likely to rise by up to 5%, 3% and 5%, respectively, due to customs duty hike. The industry expects demand for lab-grown diamonds — 60% cheaper than natural diamonds — to rise as the government pushes indigenous production for the first time.
Corporate social responsibility: No input tax credit for CSR expenses
The Finance Bill provided much needed clarification on the treatment of input tax credit (ITC) towards CSR purposes as industry was following different practices until now. No ITC is allowed on expenses incurred towards CSR.
Less pain, more gain: Extended tax benefits for startups
The date of incorporation for DPIIT-registered startups to avail tax benefits has been extended by ayear to March 31, 2024. Startups can now take the benefits of carrying forward losses from seven to 10 years.
Municipal Bonds: Making cities ready
Through property tax governance reforms and ring-fencing user charges on urban infrastructure, cities will be incentivised to improve their credit worthiness for municipal bonds.
Enhancing opportunity: Private investment in Infrastructure
Newly established Infrastructure Finance Secretariat to assist stakeholders for private investment in railways, roads, power and urban infrastructure
Up in the air: Regional connectivity
Fifty additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity.