Income Tax Rules: In the coming days, rules and regulations related to income tax will become easier. Because, the government is reviewing the Income Tax Act, 1961.Now there is going to be a big change in the tax rules from next year i.e. 2025.
Relief for common man
According to sources, the Center will do a big job to provide relief to the common man. Preparations are underway to make changes in the provisions of the Income Tax Act 1961 to remove these problems related to tax laws of the common man. Finance Minister Nirmala Sitharaman had directed to bring the Direct Tax Code (DTC) in simple and easy language for the common people so that legal disputes can be reduced by simple legislation and consistent tax rates.
Some possible major changes
In the new tax system, tax deducted at source (TDS) and tax collection at source (TCS) will be applicable to almost all types of income. The TDS rate on multiple payments is being reduced from 5% to 2%, while the TDS rate for e-commerce is being reduced from 1% to 0.1%. Taxpayers will only be identified as resident and non-resident, thereby eliminating categories such as ROR (residential), RNOR (residential but not usually) and NR (non-resident). Capital gains will be brought under the tax net as regular income. Short-term gains on financial assets will be taxed at 20% and long-term gains at 12.5%. The words ‘assessment year’ and ‘previous year’ have been removed. Only the term “Financial Year” will be used for return filing. Apart from CAs, now CSs and CMAs may also be allowed to conduct tax audits, which will widen the scope of tax audits.