I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Writing has always been a passion. Maybe it's the desire to explain complex financial concepts in a clear, understandable way, or perhaps it's the joy of crafting a compelling narrative. Whatever the reason, I've recently started putting pen to paper (or rather, fingers to keyboard) and creating articles and blog posts that make the world of finance less intimidating for everyday people.
I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Writing has always been a passion. Maybe it's the desire to explain complex financial concepts in a clear, understandable way, or perhaps it's the joy of crafting a compelling narrative. Whatever the reason, I've recently started putting pen to paper (or rather, fingers to keyboard) and creating articles and blog posts that make the world of finance less intimidating for everyday people.
The income tax is a direct tax which follows a progressive slab rate, where the rate of tax increases as the taxpayer's income rises. The Income-tax Act, 1961 provides for two tax regimes: the old regime, which allows various deductions and exemptions, and the new regime, which offers lower tax rates without exemptions.Budget 2025 UpdatesThe new Income Tax Bill has been tabled by the Honorable Finance Minister in the Lok Sabha. It aims to simplification and better presentation of the provisions. Learn more.As per the budget 2025, the income up to Rs. 12,00,000 will have zero tax liability for the FY 2025-26 (AY 2026-27) under the new tax regime.
Section 194O has been introduced in the Union Budget 2020. According to Section 194O, an E-Commerce operator is required to deduct TDS for facilitating any sale of goods or providing services through an E-Commerce participant. TDS on E-commerce operators under section 194-O is applicable from 1 October 2020. Dive into this blog for a better understanding of the following:Recent Budget Update in section 194-OIntroduction to E-commerce operators and participantsScope of Section 194-OTime of deduction of TDSPurpose of Section 194-OExceptions to Section 194-OLaw Before Section 194-OE-commerce vs OIDARConclusionWho Are E-Commerce Operators And Participants?E-Commerce Operator An E-commerce operator is a person who owns, operates, or manages a digital/electronic facility for the sale of goods and services. He is responsible for making payments to the e-Commerce participant on such sales.E-Commerce Participant An E-commerce participant is a person who sells goods, services, or both through an electronic facility provided by an E-commerce operator. He must be a resident of India.Scope Of Section 194OE-commerce operators shall deduct TDS @ 0.1% of the gross amount of the sale of goods, provision of services, or both made by the e-commerce participant on the platform facilitated by the e-commerce operators.E-commerce Participant Being a Resident Individual or HUF E-commerce operators are not required to deduct TDS if the gross amount of sale of goods, services, or both during the previous year does not exceed Rs 5 lakh and if the E-commerce participant has furnished his PAN or Aadhaar.If the E-commerce participant does not furnish his PAN or Aadhaar, TDS must be deducted at the rate of 5%, as per provisions of Section 206AA.E-Commerce Participant Being a Non-residentAs stated earlier, an e-Commerce participant must be a resident of India.
The Income Tax Bill 2025, which was introduced by the Honorable Finance Minister on Thursday the 13th of February 2025 was announced in Budget 2025 . The Bill brings with it much needed reforms and will replace the age old Income Tax Act, 1961. The Bill aims to provide for a more structured tax administration, usage of modern compliance mechanism, digital mechanism and streamlined provisions for business and individuals.Keep reading this article to know more!Disclaimer: The provisions of the Income Tax Bill 2025 will be applicable only after it is passed in both the houses of the parliament and is assented by the President. For now it is only a proposal and not a law.What is the Income Tax Bill 2025?The Income Tax Bill 2025 is the set of rules and regulations upon which the Income Tax Department levies, administers, collects and recovers taxes. It contains 536 sections, 23 chapters and 16 schedules which contain all the aspects of taxation in India. The Bill was introduced in the parliament on 13th February 2025.
The New Income Tax Bill was introduced in the Lok Sabha on 13th February 2025. The purpose of this bill is to simplify the complex Income Tax Act of 1961. The Income Tax Act has undergone many changes since 1961, as certain changes are made to it every year through the Union Budget. The Income Tax Act has evolved significantly over the past six decades, with everything from adjustments to tax rates to the introduction of new provisions, alongside the introduction of fresh exemptions and the removal of outdated ones.Over the years, it has been revised so extensively that it now bears little resemblance to its original form when it was first enacted.For quite some time, tax experts and taxpayers alike have expressed a need for a completely new law—one that is built from the ground up, integrating all existing provisions and expanding beyond them. The Bill if passed will be effective from 1st April 2026.Purpose of the New Income Tax BillIn the Budget Speech of 2024, Finance Minister Nirmala Sitharaman revealed the government's intention to scrutinise the Income Tax Act, 1961 in totality.
The upcoming Income Tax Bill 2025, which was introduced in the Parliament on February 13, seeks to simplify India's tax laws and simplify compliance for taxpayers. One of the key changes in the bill is the introduction of the "tax year," which replaces both the Financial Year (FY) and the Assessment Year (AY). In this article, we will learn about the "tax year" as outlined in the new Income Tax Bill 2025.What is a Tax Year in Income Tax?As per the Income-Tax Bill, 2025, the Tax Year is defined as follows:It is a 12-month period that begins on April 1st and ends on March 31st of the following year.For a newly established business or profession, the Tax Year starts from the date of the establishment.If a new source of income arises during the year, the Tax Year for that income begins from the date the income source comes into existence.Comparison: Tax Year v/s Financial Year v/s Assessment YearThe comparison of tax year under the new Income Tax Bill, 2025 and Financial year and Assessment year is as follows:AspectTax Year (New Law)Financial Year (Old Law)Assessment Year (Old Law)Definition12-month period for earning and reporting income12-month period when income is earnedThe year following the Financial Year when tax is assessedDurationApril 1 – March 31April 1 – March 31April 1 – March 31 (subsequent year)Filing PeriodTax is filed after the tax year endsUsed to refer to income-earning periodA tax return is filed in the AYExampleTax Year 2026-27 (Income earned from April 1, 2026, to March 31, 2027)FY 2026-27 (Income earned from April 1, 2026, to March 31, 2027AY 2026-27 (Tax return to be filed for FY 2025-26)Impact of the ChangeThe removal of the concept of financial year and assessment year simplifies the tax process, giving taxpayers a better overview and lesser confusion. It tends to simplify the operation of the tax authorities additionally by minimizing amounts of disparities and misinterpretations concerning assessment periods and the financial periods.Related Articles:Direct tax code 2025Direct tax code vs Income tax actNew Income Tax Bill 2025 DateOld Income Tax Act 1961 vs New Income Tax Bill 2025.
The much-awaited Union Budget 2025 by Finance Minister Nirmala Sitharaman, was presented on February 1, 2025, which focused on a new landmark for India's economic trajectory to make growth all-inclusive, which is aimed at empowering the poor, the youth, the farmer, and women. In a bid to strengthen long-term sustainable growth through taxation, infrastructure, agriculture, and digitalisation, this budget comes with a strong reform measure in these key sectors. Read on to find out the major highlights and key takeaways from Budget 2025.Budget 2025: Download Budget 2025Click on the link to download Finance Bill 2025: Download here Click on the link to download the Budget 2025 speech: Download here1. Direct Tax ProposalsIntroduction of a New Tax BillA new Income Tax Bill will be introduced in this week, which aims to replace the existing Income Tax Act of 1961. This bill is designed to simplify tax compliance and reduce the complexity of current tax laws by up to 60%.Changes in Tax Structure Under the New RegimeUnder the New tax regime, the tax structure is revised as follows:Income Tax SlabsTax RateUpto Rs.
Income tax is a type of direct tax i.e. it is directly levied on the wealth or income of a person. the person who pays the tax to the Government cannot recover it from someone else i.e. the burden of tax cannot be shifted.Budget 2025 UpdateThe income earned up-to Rs.12 Lakhs under new regime will ultimately have Nil tax liability. Here's how!The modified slab rates for new tax regime applicable for FY 2025-2026 are as follows:Income Tax SlabsTax RatesUp-to Rs.
The government introduced various incentives in the recent times to encourage the adoption of the new regime. These changes show that the government intends to have taxpayers transition to the new regime and eventually phase out the old one. Though the new regime is now the default tax regime, the old tax regime will continue to exist.Budget 2025 UpdateThe income earned up-to Rs.12 Lakhs under new regime will ultimately have Nil tax liability. Here's how!The modified slab rates for new tax regime applicable for FY 2025-2026 are as follows:Income Tax SlabsTax RatesUp-to Rs. 4,00,000NILRs. 4,00,001 - Rs.
The Income Tax Bill 2025 was introduced by Finance Minister Nirmala Sitharaman in the Lok Sabha on 13th February 2025. The Bill if passed will replace the decades old Income Tax Act 1961 and aims to bring major reforms by simplifying the provision of the Act. In this article we will answer some of the frequently asked questions about the Income Tax Bill 2025.What is the Income Tax Bill 2025?The Income Tax Bill 2025 is a bill which aims to reform the direct taxation provisions of India. The Bill if passed will replace the Income Tax Act 1961. The Income Tax Bill 2025 is set to streamline the tax administration of the country and break down the complex provision of tax into simpler concepts. The Bill also brings reforms to the tax compliance with modern mechanisms, efficiency in tax recovery and appeal process.When will the Income Tax Bill 2025 be Applicable?The provisions of the Income Tax Bill 2025 will be applicable after it is passed by both the houses of the parliament and is assented by the President of India.
The new regime under Section 115BAC gives individuals and HUF taxpayers an option to pay income tax at lower rates with fewer exemptions and deductions to claim. Keep reading to learn more about Section 115BAC of the Income-tax Act, 1961.Budget 2025 UpdateThe income earned up-to Rs.12 Lakhs will ultimately have Nil tax liability. Here's how!The modified slab rates for new tax regime applicable for FY 2025-2026 is as follows:Income Tax SlabsTax RatesUp-to Rs. 4,00,000NILRs. 4,00,001 - Rs.