At 11 p.m. Saturday, February 1st, Finance Minister Nirmala Sitharaman gave the parliament a presentation of the Union Budget for 2025. The FM is proposing her budget for the eighth time, which is a record for Indian FM. The necessity of flexibility in policymaking has been emphasized a lot.
The FM in her speech has proposed to reduce compliance burdens on small charitable trusts and institutions. The government aims to streamline the process, making it more straightforward and less cumbersome for charitable institutions to claim exemptions.
Sitharaman said that“it is also proposed that disproportionate consequences do not arise for minor defaults, such as incomplete applications filed by charitable entities.”
The FM proposed to reduce the compliance burden for small charitable trusts/institutions by increasing their period of registration from 5 years to 10 years. This change will provide them with greater stability and reduce the administrative hassle of frequent renewals, allowing them to focus more on their core mission of serving society.
More than 5000 Key Judgments on GST by Supreme Court, HCs, AAR, AAAR and NAA from 2017 to 2025
The FM in her speech said that minor mistakes, like submitting an incomplete application, should not lead to harsh consequences. Instead of imposing disproportionate penalties, a fairer approach would be to allow these organizations to correct such errors without unnecessary hardship. This will ensure that charitable institutions can continue their important work without being burdened by technicalities.
The budget contains a comprehensive roadmap for the coming year. In her budget speech, the minister addressed the 6 sectors the Union budget is focusing on. The minister also said that she will be presenting the new Income Tax Bill next week.
More than 5000 Key Judgments on GST by Supreme Court, HCs, AAR, AAAR and NAA from 2017 to 2025
The main focus is being emphasised on taxational reforms. Major focus is on simplifying the tax structure to enhance compliance and reduce litigation. The minister also said that she will be presenting the new Income Tax Bill in next week.
To know if the previous budget promises were fulfilled, read more: FY 2024-2025 Budget Progress Report: Were the Promises Kept? [Part 2]
Read More: https://www.taxscan.in/budget-progress-report-fy-were-the-promises-kept-part/484047/
These initiatives reflect the government’s strategy to balance fiscal consolidation with growth, aiming for sustainable and inclusive economic development. With the country facing inflation, it is expected that the budget for 2025 would regularise the taxes and reduce the burden on the common man.
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