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Budget 2025 has tightened the norms for taxpayers engaged in cryptocurrency trading. Budget 2025 has put virtual digital assets such as cryptocurrency and NFTs, which will now be part of undisclosed income, attracting higher tax rates. Further, disclosure requirements have been widened for taxpayers having income from crypto trading according to The Times of India report.
Availability of credit for taxes paid on inputs – be it goods, such as raw material, or services for setting off against Goods and Services Tax (GST) liability plays an important role in the GST arena. Input Tax credit (ITC) helps reduce the tax outgo for the GST payer.
Income Tax Budget 2025 Explained: Finance Minister Nirmala Sitharaman has raised the limit of income tax rebate from Rs 7 lakh to Rs 12 lakh, which essentially means that if an individual has an income of up to Rs 12 lakh, she will have zero tax liability.
The finance ministry in the Budget has proposed to fix a two-year time limit, extendable by one year, for finalising provisional assessments of export and import consignments with an aim to reduce uncertainty and costs for exporters. Currently, the Customs Act, 1962 lacks a fixed timeline for finalising provisional assessments, causing delays and uncertainties.
The Union Budget has proposed a host of amendments in GST law, including implementing the Track and Trace Mechanism, for evasion-prone goods. The budget inserted a new clause in Central GST law to provide for a definition of Unique Identification Marking for the implementation of Track and Trace Mechanism.
Central Board of Direct Taxes (CBDT) Chief Ravi Agrawal on Monday asked industry players to give their suggestions on the new income tax bill, which will be tabled in Parliament this week. The new income tax bill, which will replace the six decade old Income Tax act, 1961, has been drafted within six months and efforts have been made to simplify the language to make tax compliance easier for taxpayers and make it easier to read and understand.
Budget 2025 has increased the threshold limit to deduct TDS on house rent paid by non-individuals like companies, etc. Now TDS on house rent paid has to be deducted from the rent payment if the rent payment is Rs 50,000 per month or part of a month or more. Earlier this threshold was if the rent payment exceeded Rs 2.4 lakh per annum. This threshold limit was Rs 1,80,000 until FY 2018-19. This amendment will take effect from April 1, 2025.
Finance Minister Nirmala Sitharaman, in her Budget speech, announced the introduction of the New Income Tax Bill. Ravi Agrawal, chairman, Central Board of Direct Taxes (CBDT), in an interaction in New Delhi with Monika Yadav and Asit Ranjan Mishra discussed a range of topics, including framing of tax proposals, and why he feels most taxpayers would opt for the new tax regime.
Following the stipulation in a recent GST council meeting and issue a circular, Budget 2025 has deleted obsolete provisions relating to goods and services tax (GST) on gift vouchers. However, it should be noted that allied activities like marketing of these vouchers will still be subject to gift tax.
A supplier of goods or services can issue a credit note to the buyer in several instances. Typically this happens if the supplier has made mistakes in the original invoice, such as declaring a value higher than the value of goods or services actually provided or has mentioned an incorrect higher GST rate. A credit note is also issued when goods are returned by the buyer.