The Hon’ble Finance Minister presented the Union Budget, 2025 on 1st February 2025 with certain major reliefs for individual taxpayers such as making income tax free up to INR 12 Lakhs, Reduction in slab rates, introducing new slab taxable @ 25%, higher standard deductions, lower TDS rates, increase in threshold limit for TDS deductions, etc. This will leave individual taxpayers with surplus funds for savings.
This article discussed the Key Amendments for individual taxpayers from Union Budget 2025:
1. Change in Tax slab rates:
- Following are the updated slab rates under the default (New Tax) regime:
| Existing Tax Rates |
Merged Tax Rates |
| Taxable Income |
Tax Rates |
Taxable Income |
Tax Rates |
| Upto INR 3,00,000 |
NIL |
Upto INR 4,00,000 |
NIL |
| 3,00,001 – 7,00,000 |
5% |
4,00,001 – 8,00,000 |
5% |
| 7,00,001 – 10,00,000 |
10% |
8,00,001 – 12,00,000 |
10% |
| 10,00,001 – 12,00,000 |
15% |
12,00,001 – 16,00,000 |
15% |
| 12,00,001 – 15,00,000 |
20% |
16,00,001 – 20,00,000 |
20% |
| Above 15,00,000 |
30% |
20,00,001 – 24,00,000 |
25% |
|
|
Above 24,00,000 |
30% |
- Further, a rebate under section 87A has been proposed to increase from INR 25,000 to INR 60,000/-. Such rebate shall make income tax free up to INR 12,00,000/-.
- Following are net tax savings under new tax regimes on different income categories:
| Income |
Tax under the existing regime |
Tax under the proposed regime |
Net Tax Saving |
|
Income Tax |
Rebate U/s 87A |
Net Tax Liability |
Income Tax |
Rebate U/s 87A |
Net Tax Liability |
|
| 7,00,000 |
20,000 |
20,000 |
– |
15,600 |
15,600 |
– |
– |
| 10,00,000 |
52,000 |
– |
52,000 |
40,000 |
40,000 |
– |
12,000 |
| 12,00,000 |
83,200 |
– |
83,200 |
60,000 |
60,000 |
– |
23,200 |
| 15,00,000 |
1,45,600 |
– |
1,45,600 |
1,09,200 |
– |
1,09,200 |
36,400 |
| 20,00,000 |
3,01,600 |
– |
3,01,600 |
2,08,000 |
– |
2,08,000 |
93,600 |
| 25,00,000 |
4,57,600 |
– |
4,57,600 |
3,43,200 |
– |
3,43,200 |
1,14,400 |
| 30,00,000 |
6,13,600 |
– |
6,13,600 |
4,99,200 |
– |
4,99,200 |
1,14,400 |
- It is pertinent to note that no changes are prescribed for old tax regimes making it less beneficial for the taxpayers despite having higher deductions.
- Standard deduction from the salary income has been proposed to increase from INR 50,000 per year to INR 75,000 per year. Accordingly, no tax shall be charged on salary income up to INR 12,75,000/- under the default (new) tax regime.
Read Also: Union Budget-2023-24| Income Tax Amendments
2. Changes in threshold limit for TDS Deduction
The following provisions related to TDS Deductions have been amended:
a. TDS on Interest on Securities (Section 193)
- Under existing provisions, TDS on interest on securities is to be deducted at the rate of 10% where the interest income exceeds the specified threshold limit. The Union budget has proposed to increase the threshold limit for TDS deduction to the following extent:
| Particulars |
Existing Threshold Limited |
Proposed Threshold Limit |
| Interest paid to resident Individuals and HUF on any debenture issued by a company in which the public is substantially interested |
5,000 |
10,000 |
| Any other interest in security |
NIL |
5,000 |
B. TDS on Dividend (Section 194)
- Under existing provisions, TDS on dividend income paid to individual shareholders is to be deducted at the rate of 10% where the dividend amount exceeds INR 5,000/-.
- The Union Budget 2025 has proposed to increase such a threshold limit to INR 10,000/-.
c.TDS on Interest other than interest on securities (Section 194A)
- Under existing provisions, TDS on interest income is to be deducted at the rate of 10% where the interest income exceeds the specified threshold limit. The Union budget has proposed to increase the threshold limit to the following extent:
| Particulars |
Existing Threshold Limited |
Proposed Threshold Limit |
| Interest is paid by Banks, Cooperative societies, and post office |
40,000 |
50,000 |
| Interest is provided by any other person |
5,000 |
10,000 |
| Interest is provided to a senior citizen |
50,000 |
1,00,000 |
d. TDS on payment of rent (Section 194I)
- Under existing provisions, TDS on payment of rent is required to be deducted if the aggregate amount of rent exceeds INR 2,40,000/- during the financial year.
- Union Budget has proposed to change the threshold limit to INR 50,000/- per month or part of the month.
- Therefore, if the property is taken on rent for 2 months only and rent is to be paid of INR 70,000/- per month then TDS is to be deducted as per amendment even if the aggregate amount does not exceed INR 6,00,000/- during the year.
e. TDS on Compensation on acquisition of Immovable property.
- 根据现行规定，如果不动产强制征收的补偿金在一个财政年度内超过 250,000 印度卢比，则需根据第 194LA 条扣除 10% 的源头扣缴税款 (TDS)。
- 联邦预算案提议将该财政年度的门槛限额提高至 500,000 印度卢比。
f. 其他 TDS 规定的修订
- 除上述 TDS 规定外，联邦预算案还提议更改以下 TDS 规定的门槛限额：
| Section |
Particulars |
Existing Threshold Limited |
Proposed Threshold Limit |
| 194J |
Fees for professional services, technical services, royalty, and sums as per section 28(VA) |
Aggregate payment exceeds INR 30,000/- during PY |
INR 50,000/- |
| 194D |
Insurance Commission |
15,000 |
20,000 |
| 194G |
Commissioner, etc. on lottery tickets |
15,000 |
20,000 |
| 194H |
Commission or Brokerage |
15,000 |
20,000 |
| 194B |
Winnings from the lottery, crossword puzzles, etc |
Aggregate payment of INR 10,000/- per FY |
INR 10,000 per transaction |
| 194BB |
Winning from horse race |
Aggregate payment of INR 10,000/- per FY |
INR 10,000 per transaction |
3. 取消针对未申报所得税申报表者的较高 TDS 扣除规定
- 根据所得税法第 206AB 条，对于连续两个财政年度未提交所得税申报表，且在此期间被扣缴的 TDS 或征收的 TCS 超过 50,000 印度卢比的个人，需按较高税率扣除 TDS。
- 联邦预算案提议自 2025 年 4 月 1 日起废除 第 206AB 条。
4. 废除商品销售的 TCS 规定（第 206(1H) 条）
- 根据 1961 年所得税法第 206C(1H) 条，如果在一个财政年度内商品销售的总对价超过 500,000 印度卢比，卖方需按 0.1% 的税率征收 TCS。
- 卖方须按月征收 TCS 并将其存入政府账户。
- 联邦预算案提议自 2025 年 4 月 1 日起废除商品销售的 TCS。
5. 延长更新申报表的提交期限
- 纳税人可在评估年度的 12 月 31 日之前提交逾期申报表。12 月 31 日之后，纳税人可提交更新申报表。
- 根据现行规定，在缴纳额外税款的情况下，更新申报表可在相关评估年度结束后的 2 年内提交。
- 联邦预算案提议，在缴纳以下额外税款的前提下，将提交更新申报表的期限从 2 年延长至 4 年：
自相关评估年度结束起提交更新申报表的时间额外税款及利息支付百分比12 个月25%24 个月50%36 个月60%48 个月70%
6. 其他修订
联邦预算案还针对个人所得税提出了以下其他修订：
- 如果 TCS 延迟支付是在相关季度 TCS 申报表提交截止日期之前完成的，则不予追究。
- 针对自住物业采用零价值的条件提议自 2025 年 4 月 1 日起取消。
结论
联邦预算案通过提高免税收入、提高 TDS 扣除门槛等方式，为个人纳税人带来了多项资金节省福利。此外，废除商品销售的 TCS 规定将免除整个行业的一项主要月度合规要求。延长提交更新申报表的期限将增加税收申报数量。
