Union Budget Income-tax compliance updates focus on simplification, automation, and reduced litigation for individuals, businesses, and NRIs. The latest Budget introduces meaningful procedural reforms in return filing, TDS/TCS rationalization, and digital compliance processes, aimed at easing the compliance burden while improving transparency and efficiency.
KEY INCOME-TAX COMPLIANCE CHANGES
1. Extended Timeline for Revised Return Filing
Earlier Provision: Revised return allowed up to 31 December of the Assessment Year.
New Provision: Time limit extended up to 31 March (subject to nominal fee).
Impact: Additional time to correct errors, reduce penalties, and avoid unnecessary notices.
2. Automation of Lower / Nil TDS Certificates (Section 197)
Earlier: Manual and discretionary approval process.
Budget Proposal: Rule-based automated approval mechanism.
Impact: Faster processing, improved cash flow for small taxpayers and businesses.
3. Centralised Submission of Form 15G / 15H
Earlier: Separate submission to each company.
Now: Depositories empowered to accept Form 15G/15H centrally.
Impact: Reduced repetitive compliance for senior citizens and investors.
4. TDS and TCS Rationalisation
Manpower supply – TDS clarified at 1% / 2%.
Overseas tour packages – TCS reduced to 2%.
Education & medical remittances under LRS – TCS reduced to 2%.
Interest on motor accident compensation – Fully exempt, no TDS.
Impact: Cash-flow relief and reduced litigation.
5. Non-Resident & Cross-Border Compliance
Expanded Portfolio Investment Scheme eligibility for persons resident outside India.
Greater automation in withholding tax processes.
Impact: Improved ease of compliance and investment access.
Conclusion:
The Income-tax proposals emphasise simplified compliance, automation, and reduced friction for genuine taxpayers, supporting ease of doing business and voluntary compliance. Disclaimer:
This document is for general information only and does not constitute professional advice. Applicability is subject to enactment of the Finance Act and relevant notifications.
Official reference: https://www.indiabudget.gov.in/
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