tax

Old vs new income tax regimes: How to choose the most beneficial tax structure

Budget 2024 ushered in sweeping changes in the new tax regime, rejigging income tax slabs and hiking the standard deduction to Rs 75,000 while leaving the old tax regime untouched. While the former is clearly being favoured, some taxpayers still find the old regime more beneficial.

A tax proposal to save Rs 1 lakh for every salaried tax payer without abandoning fiscal prudence

Data shows 88 percent of salaried tax payers earn less than Rs 15 lakh a year and contribute a mere 20 percent of tax collections. Lifting the tax threshold to Rs 15 lakh and levying a tax of 25 percent and 30 percent on the next two slabs can release up to Rs 2.4 lakh crore into the hands of salaried taxpayers. A lot of this tax relief will be recouped by the government in the form of GST accruing from higher consumption. It’s a win-win idea.

Time ripe for streamlining withholding tax in the budget

The current withholding provisions provide for seven rates. Having multiple rates creates confusion for taxpayers and increases compliance costs and even leads to litigation if TDS is deducted under certain incorrect provisions. The Government can consider rationalising the rates under four broad categories

MC-Deloitte CEO survey: Over 44% CEOs want Budget 2025 to reduce income tax slab rates in both old and new regimes

Close to 13 percent of the CEOs polled said they were expecting a stable regime, with no changes in either of the income tax regimes.

Driving India’s circular economy through tax rebates and sustainability initiatives in Budget 2025

India’s transition to a circular economy is vital for sustainable growth. Budget 2025 can accelerate this shift through tax incentives, waste-to-energy investments, and expanded PLI schemes, driving innovation, job creation, and environmental benefits while enhancing economic resilience.

Foreign Investment and India’s Economy: Role of tax policies in Budget 2025

India's tax policies play a crucial role in attracting foreign investment, which drives economic growth. Budget 2025 offers an opportunity to simplify tax regulations, reduce capital gains tax, and introduce sector-specific incentives to enhance India's global investment appeal

Will Budget 2025 lay the roadmap for a simplified income-tax system?

The government should consider making the filing process simpler for non-resident Indians who do not have Aadhaar by allowing them to use a PIN or electronic verification code to e-verify their returns

Budget 2025 wish list: 'Relax income tax return-filing timelines for residents with foreign income'

While most countries, such as the US, UK, Australia, Canada, the Netherlands and Germany follow the calendar year (January to December) as their tax year, India operates on a fiscal year (April to March). This mismatch creates discrepancies in the income and taxes declared in the respective countries, often affecting the tax burden in India.

A decade on, Sukanya Samriddhi Yojana emerges as a clear winner

SSY has the EEE tax benefit available to PPF, which provides attractive post-tax returns in the backdrop of negligible risk. It offers parents a good option to provide a solid investment for their daughter. In its category, SSY is a highly attractive investment product.

Sukanya Samriddhi @10: The scheme can add value to your daughter’s education corpus, but do not ignore allocation to equities

Sukanya Samriddhi Yojana can make up the debt component in your daughter’s education portfolio. Equities, on the other hand, can generate wealth over 10-15 years by yielding inflation-beating returns.

Trump's exit from global tax deal not to hit India from tax collection standpoint: Experts

Nangia & Co LLP Managing Partner Rakesh Nangia said the impact of the US pulling out of the global tax deal would have monumental impact on the global tax landscape

India’s third shot at tax reform mustn’t miss the target

While the middle class hopes for urgent relief, New Delhi wants more people to pay taxes. The new code needs to do a balancing act

'Tax-payers with incomes of over Rs 19 lakh are shelling out ‘excess’ tax’, says BankBazaar study

Budget 2025: As per BankBazaar calculations, ‘excess’ tax is the difference between inflation-adjusted taxes and actual taxes. For instance, based on the Cost Inflation Index (CII), a taxpayer with a taxable income of Rs 25 lakh now pays Rs 37,200 a year in ‘excess’ taxes.

Budget 2025: Exempt NPS annuity income from tax, allow deduction for Vatsalya scheme, say experts

Compulsory annuitisation of 40 percent of the National Pension System (NPS) corpus is a roadblock to greater adoption, say industry players and independent experts. It should either be exempt from tax or investors should be offered an alternative, such as a systematic withdrawal option.

Will FM Nirmala Sitharaman scrap the old, with-exemptions tax regime in Budget 2025?

Though the government is incentivising a shift towards the new tax regime, it is unlikely that the old regime will be scrapped entirely, say tax experts. This is because a section of tax-payers does benefit from this with-exemptions tax structure. However, it might not be retained once the Income Tax Act is revamped.

Key Expectations for Union Budget 2025: Tax reforms and relief

With the Union Budget 2025 approaching, taxpayers and industry professionals anticipate significant tax reforms, including increased exemption limits, housing-related reliefs, clearer guidelines for modern assets, and enhanced investment deductions. These measures aim to reduce tax burdens and promote economic growth

Budget 2025: Hike in tax deduction on health insurance premiums critical, say experts

Tax and financial experts recommend raising tax breaks on health insurance premiums to Rs 50,000 for individuals and Rs 75,000 for senior citizens to factor in escalating medical costs.

ITR filing: Did you miss the extended January 15 deadline? You can still file 'Updated' returns

ITR filing: An updated income tax return can be filed by a taxpayer to correct any mistakes or omissions in the original or belated return. However, such returns cannot be filed to claim tax refund or reduce tax liability. The process can be completed within two years from the end of the relevant assessment year.

Navigating double taxation: How NRIs can minimise tax implications on their incomes

A double taxation avoidance agreement (DTAA) ensures your income is taxed in only one country or provides credit for taxes paid in another.

Extended Jan15 ITR deadline: Revise your income tax returns today to claim tax rebate under Section 87A

It is also the last chance for other individual tax-payers who may have missed filing their returns by July 31, or spotted errors in their submitted returns, to file belated returns or revise them.

What NRIs need to know about Indian income tax rules

Income earned or accrued in India is taxable for NRIs. Unlike resident Indians, whose taxes are based on global income, NRIs are only liable to pay taxes on income generated within India.

Budget 2025-26: Taxpayers want higher deductions on savings, fixed deposit interest income

Union Budget 2025: Individual tax-payers, especially senior citizens, are hoping for increased tax deductions under Sections 80TTA and 80TTB in Union Budget 2025 in the face of rising inflation and healthcare costs

Wait until I-T portal glitch is resolved before revising returns, CAs tell tax-payers

At present, small tax-payers with special rate income such as short-term capital gains are unable to claim the rebate under section 87A, even if their income is below the basic exemption limit, as the updated utilities are not calculating the amount automatically.

Budget 2025 Wishlist: Individual taxpayers want tax relief, deductions, slab relaxation on February 1

Income tax payers have a long wishlist, featuring a 30 percent tax slab only for those with incomes over Rs 20 lakh, inclusion of 80C and housing benefits under the new tax regime, and a special deduction for upskilling programmes.