🔹 New Income-tax Law • New simplified Income-tax Act applicable from 1-Apr-2026
- Objective: simpler language, fewer sections & litigation
🧾 TDS / TCS CHANGES • TCS reduced to 2% on: – Overseas tour packages
– Education & medical remittances under LRS
(earlier 5% / 20%) - LRS threshold increased to ₹10 lakh
- TCS on education loans (specified institutions) removed
- TCS @ 2% on scrap / alcohol etc.
- Overall rationalisation of TDS/TCS rates & sections
- Lower / Nil TDS certificates to be issued through automated system
- Form 15G / 15H to be accepted electronically (NSDL / CDSL)
📑 INCOME-TAX RETURN (ITR) • Staggered due dates: – Individuals (ITR-1 / 2): 31 July
– Non-audit cases: 31 August - Revised Return allowed up to 31 March
- Updated Return (ITR-U) allowed even after assessment, with additional tax
- Additional tax on ITR-U reduced from 20% to 10%
🏠 PROPERTY / NRI • TDS on property purchase from NRI – buyer can deposit tax without TAN (PAN-based challan) - Provisions aligned with Section 26QB
🌍 FOREIGN ASSET – ONE TIME DISCLOSURE • One-time window for undisclosed overseas assets/income • Tax + penalty approx 60% with immunity from prosecution • Minimum asset threshold: ₹5 lakh • No interest on tax paid
⚖️ PENALTIES & LITIGATION RELIEF • Minor offences decriminalised → only monetary fine - Pre-deposit for stay of demand reduced from 20% to 10%
- Certain penalties (non-audit / TP etc.) proposed to be converted into fixed fees
📊 CAPITAL MARKET / BUSINESS • Buyback of shares to be treated as Capital Gains - STT changes: – Futures: 0.02% → 0.015%
– Options: 0.10% → 0.15%
🏢 CORPORATE TAX / MAT • MAT credit set-off allowed only in new regime • MAT to be final tax • No further MAT credit accumulation.
Post by CA Ankush Gupta
Lead to Serve ☺️