The threshold to collect TCS on remittances on RBIs LRS is proposed to be increased from 7 lakhs to 10 lakhs.
TCS to be omitted for remittances for educational purposes taken from loans.
The limit for a Tax deduction on interest for senior citizens is being doubled from the present 50,000 to Rs 1 lakh rs.
Tax proposals of FM.
Personal income tax reforms with special focus on middle class, encouraging voluntary compliance, ease of TDS/TCS machinery are the main focus : FM.
FM announces Direct Tax reforms.
The new Income Tax bill will be clear and direct in text with close to half of the present law both in terms of chapters and words. It will be simple to understand for taxpayers, will provide more certainty and reduce litigation.
Provision to be introduced in the Customs Act for voluntary disclosure to pay tariff without penalty. But won't apply to cases where proceedings have already been initiated: FM.
Presently no provision in the Customs Act for provisional assessment. I propose to fix a time limit of 2 yrs extendable by a year to finalise provisional assessment under the Customs Act : FM.
I propose to continue the exemption of BCDs for parts for manufacturing of ships for another ten years
I also propose the same dispensation for ship breaking to make it more competitive: FM.
I propose to increase BCD on interactive flat panel display and reduce BCD to 5% to open cell and other components : FM.
To further boost, BCD on these parts will stand exempted.
35 capital goods added to exempted list for EV battery manufacturing and mobile phone battery manufacturing.
To promote domestic production of textiles, I propose to add two more types of looms to fully exempted(customs tariff) textile machinery : FM.
On Indirect taxes.
Will rationalise customs tariff.
I propose to (1) remove 7 tariff rates. After this there will be only 8 tariff rates. (2) apply appropriate cess to broadly maintained duty incidents. (3) levy not more than one cess or surcharge. Social welfare surcharge exempted from 82 tariff lines.
To provide relief to patients, especially cancer and rare-diseases, 36 life-saving drugs added to the list of medicines fully exempted from customs duty. 6 life-saving drugs added to concessional rates. : FM