CA Rajesh Mehta, Ex-vice president, All India Federation of Tax Practitioners | FP Photo
Indore (Madhya Pradesh): Senior citizens (aged 60 years or more) will not get TDS deducted on interest up to Rs. 1,00,000 per annum received from bank and post office savings. Currently, 10% TDS is deducted on interest above Rs. 50,000 per annum. For persons below 60 years of age, this limit has been increased from Rs. 40,000 to Rs. 50,000. The provision will definitely ensure more money in the pockets of these people.
TCS applicable on sales of more than Rs. 50 lakh abolished: For a taxpayer having annual sales of more than Rs. 10 crore, the provisions of TCS under section 206C(1H) apply at the rate of 0.1% on sales of more than Rs. 50 lakhs to a single person. In similar situations, TDS is deducted by the buyer from the seller at the rate of 0.1% under section 194Q. In such a case, both TDS and TCS are applicable on the same transaction. T
o remove this anomaly, this rule of TCS on sales which was applicable two years ago has now been removed. From April 1 this year, only TDS will be applicable. The limit of TDS on rental income has been increased from Rs 2.40 lakh annually to Rs 50,000 monthly i.e. TDS will not be deducted up to Rs 6 lakh annually. In order to provide relief to the people having rental income, the annual limit of TDS under section 194-I applicable on rent has been increased from Rs 2.40 lakh to Rs 50,000 monthly i.e. Rs 6 lakh annually.
4-year-old income tax returns can also be filed now:
If a taxpayer has not been able to file his income tax return or has forgotten to show any income in the field ‘return’, then he can file updated returns of the last four years under section 139(8A) of Income Tax Act. Till now this provision was only for the last two years. Now 60% of the tax and interest will be payable on the three- year-old updated return and 70% will be payable in the fourth year. If the updated return is not filed and a notice is issued by the income tax department, then a 200% penalty can be imposed on the tax of the hidden income, so before the notice comes, the updated return can be filed for relief from this penalty.
Tax exemption for new startups extended by 5 years:
Under Section 80-IAC, the income of any three continuous years out of the initial 10 years of a registered startup is completely tax-free. To promote startups and employment, the provision of this exemption was extended by five years. New startups formed by the year 2030 will also be able to avail this exemption.
