Education and Medical treatment Abroad:
Every year, millions of Indians go abroad for education and medical treatment. This costs a huge amount. The government is collecting 5 percent tax on these amounts. Finance Minister Sitharaman said that the tax will be reduced to 2 percent from April 1. At a time when the rupee exchange rate is falling day by day against the dollar, this is a big relief for those who send money abroad for their children’s education and medical expenses.
Tax on F&O Trading:
Speculation trading has increased exponentially in the stock market. Due to this, small and retail investors are also entering F&O trading and losing heavily. To control this, the Securities Transaction Tax (ST) levied on equity futures transactions has been increased from 0.02 percent to 00.5 percent and the ST levied on options from 0.15 percent to 0.15 percent. This will make F&O trading a burden and will drive retail investors away from it.Please go threw other posts also.
Purchase of assets from NRIs: Till now, any citizen of the country had to obtain a Tax Deduction and Collection Account Number (TAN) to buy assets from Non-Resident Indians (NRIs). This took a lot of time and also delayed the registration of the assets. With the changes made in the budget, the buyer can now deduct this amount through his PAN number. This new provision will be very beneficial for those buying properties from SRIs.
Disclosure of Foreign Assets: The Finance Minister has given a six-month deadline in his new budget to disclose details of foreign assets and income. The Finance Minister has provided this facility to small taxpayers, students, employees and NTR. If the value of undeclared assets or income is less than Rs. one crore, they can avoid prosecution by paying 30 percent tax and 30 percent penalty. Even though the tax has been paid, if the value of the undisclosed orders or income in the returns is up to Rs. 5 crore, they can be regularized by paying Rs. 1 lakh.
There is no change in the ITR-1, ATR-2 filing websites. This return should be filed by the end of July every year. Small businesses that do not require updates. Only businesses can file it by the end of August
Amended IT Return Filing:
Many people file their IT returns late or with errors. According to the current rules, such taxpayers can file their returns or revised returns by the end of the return filing period (December) by paying a small penalty. With the new IT law, those who filed returns with errors can now file revised returns within 12 months (March of the following year). There is no relief for those who file returns late. They had to file returns along with a penalty within nine months of the expiry of the deadline.
Tax on Buyback Shares:
The amount spent by companies on name buybacks will be considered as capital gains and corporate promoters will be taxed at 2 percent and non-corporate promoters at 30 percent. At the same time, the Finance Minister announced that the profits made on buybacks by individual investors will be taxed as short-term or long-term capital gains tax depending on the period for which they held the names. With this, it is expected that companies that are making a lot of profits will spend that amount on dividends or business expansion of the companies.
Little Relief for Taxpayers : Little relief for taxpayers or Nil deduction certificate Currently, people who pay a small amount of income tax have to go around applying to the assessing officers and getting around them. This budget has given a full go-ahead for this. Taxpayers can now get this certificate in an automated manner subject to certain conditions. Form-15H has brought for them.More deatils on Budget26 is available online
Tax on Crypto Currencies:
The government has made crypto currency transactions more difficult. Trading institutions must inform the government of these details from time to time. Otherwise, a fine of Rs. 200 per day will be imposed. If false details are submitted, a fine of up to Rs. 50,000 will be imposed. The Central Board of Direct Taxes has recently warned that crypto income is not included in the calculations.
Sovereign Gold Bonds (SBG): The Finance Minister has also brought profits from Sovereign Gold Bonds (ACBs) under the ambit of capital gains tax. From now on, only investors who hold certain NTGBs until maturity when issued by the RBI will get capital gains tax exemption. Those who buy and make profits in the secondary market will have to pay capital gains tax at the rate of 2.0 or 12.5 percent, depending on the period for which they held those investments.