Summary:

Union Minister Nirmala Sitharaman presented the first budget of Prime Minister Narendra Modi's third term, focusing on tax simplification, reduced litigation, and enhanced taxpayer services. Key changes include a revision of the Income Tax Act, consolidation of charitable exemptions, and a reduction in TDS rates from 5% to 2% on payments like commission and rent. The budget aims to improve business opportunities and boost tax compliance.

It introduces an amnesty scheme for dispute resolution, raises appeal limits, and adds officials to handle cases. Investor-friendly measures include eliminating the Angel tax, imposing a 2% equalization levy on e-commerce services, and reducing corporate tax rates for foreign firms from 40% to 35%. Capital gains tax reforms include shorter holding periods and adjusted rates (20% for short-term gains and 12.5% for long-term gains). Personal tax changes offer savings of up to $209.18 (Rs. 17,500) through increased standard and family pension deductions. The impact on salaried individuals will become clearer in due course.

Source: IBEF

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