tds rationalization

TDS deductions on gross receipts severely strain working capital in sectors like real estate, infrastructure, and BPO, where margins are modest. Even taxpayers having exemption certificates or losses struggle to obtain nil-rate certificates, leading to blockage of funds which eventually must be claimed by filing tax return.

Government has resolved over 80 per cent of disputes relating to TDS deduction through an online system and will carry out changes in TDS limits or slabs once the recommendations of the Easwar Committee are received, said minister of state for finance Jayant Sinha.

Budget 2024 expectations: It should be kept in mind that withholding tax is a vicarious collection of tax and that the tax authorities can always have recourse to the primary taxpayer.

Budget 2026: EY-India outlined certain direct tax reforms, which if introduced, could unlock private capital, enhance competitiveness, and support inclusive economic growth.

A committee headed by retired Justice R V Easwar, in its first report released on Sunday, has suggested enhancing the threshold limits of income (across a wide spectrum, including investment income) for the purpose of deduction of tax at source (TDS) and has also proposed a reduction in the rate of withholding taxes (the rate at which TDS is applied).

Finance minister Nirmala Sitharaman announced a new tax regime and significant reforms to ease compliance for the middle class and senior citizens. Key highlights include a nil tax slab up to Rs 12 lakh, rationalisation of TDS and TCS limits, and extended compliance periods for charitable trusts.

TDS content much above approved limit

Maharashtra CM Devendra Fadnavis praised the Union Budget 2025 by FM Nirmala Sitharaman as a "dream budget" particularly benefiting the middle class. The budget includes key economic reforms, raising income tax exemption to Rs 12 lakhs, which is expected to significantly impact the economy positively. Additionally, the TDS on rent threshold was increased from Rs 2.

Income-tax refunds have risen sharply from Rs. 1.92 lakh crore in FY21 to Rs. 4.76 lakh crore in FY25. A substantial portion of these refunds is attributed to excess TDS.

If banks have their way, life for depositors – especially women and senior citizens – will get simpler. During a pre-budget meeting with finance minister Pranab Mukherjee on Thursday, the country’s top bankers suggested that the government should increase the limit on tax deducted at source (TDS) on interest from bank deposits to Rs 50,000, from Rs 10,000 at present.

More than 2.5 lakh goods vehicles across the state were off the roads as part of an indefinite strike from 6am on Friday. A nation-wide strike call had been given by the All-India Motor Transport Congress (AIMTC) in protest of the hike in fuel prices, among other demands.

New Delhi, Sept 13 () Lauding the government's decision to ban 328 fixed-dose combination (FDC) of drugs and restricting another six, a group of NGOs Thursday said it was a step towards rectifying the "grave" situation of the pharma market which they alleged was brimming with innumerable irrational

India Budget 2023: If India introduces corporate tax rate of 15% for all the companies – operating in all the sectors, then it will have one of the most competitive corporate tax rates in the world.

The first positive has been favourable macro-economic conditions-an 8.7% GDP growth, buoyant tax collections, strong capital flows and robust forex reserves

Budget 2024 income tax takeaways: This is the first full budget of the Modi Government post elections. With no major changes being announced in the interim budget, the expectations were high this time around. In line with Government’s focus on simplifying taxes, improving tax-payer services, provide tax certainty and reduce litigation the FM proposed the following changes to the direct-taxes: