In the Budget 2024-25, it has been proposed that a credit for tax collected at source ( TCS ) will be allowed when deducting tax deducted at source ( TDS ) from salary.
The Union Finance Minister Nirmala Sitharaman presented the full – budget 2024 today before the parliament at 11 am.
The Budget proposes a comprehensive rationalization of the GST tax structure, along with a review of the Custom Duty rate structure, to improve the tax base and support domestic manufacturing. A thorough review of the Income Tax Act aims to reduce disputes and litigations, making the act clearer and more concise. Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman stated that the simplification of tax regimes without exemptions and deductions for corporate and personal income tax has been well-received by taxpayers. In 2022-23, over 58 percent of corporate tax revenue came from the simplified tax regime, and more than two-thirds of taxpayers have switched to the new personal income tax regime.
The two tax exemption regimes for charities will be merged into one. 5 per cent TDS on many payments to be merged into 2 per cent TDS and 20 per cent TDS on repurchase of units by mutual funds or UTI stands withdrawn. TDS rate on e-commerce operators reduced from 1 per cent to 0.1 per cent. Now credit of TCS will be given on TDS deducted from salary. Budget decriminalized delay of payment of TDS up to the due date of filing of TDS statement. Standard Operating Procedure soon for simplified and rationalized compounding guidelines for TDS defaults.
Notably, 5 percent TDS on many payments to be merged into 2 percent TDS and 20 per cent TDS on repurchase of units by mutual funds or UTI stands withdrawn. TDS rate on e-commerce operators reduced from 1 per cent to 0.1 per cent. Now credit of TCS will be given on TDS deducted from salary.
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