The finance minister announced that a new Income-tax bill would be introduced in the next week, with close to half of the present law, in terms of both chapters and words. The finance minister also mentioned that the bill will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation.
On the personal tax front, tax slabs and rebates have been amended under the default (new tax) regime. As a result, there would be no income tax payable up to the income of INR 12 lakh (other than income taxable at special rate such as capital gains).
The domestic taxation proposals include an extension of the sunset clause for incorporation of an eligible start-up to claim tax holiday and inclusion of the inland vessels in the existing tonnage tax regime. The threshold limits for applying the TDS provisions are proposed to be increased to ensure that low-value transactions are not subjected to TDS compliance.