Fine Print Analysis: Finance Bill, 2025

1. New Bill will be simple, clear for taxpayers
2. New Income Tax Bill will carry forward the 'nyaya' approach!
3. New Income Tax Bill expected to be half of the present Law both in Chapters and words!
4. Personal Income-tax reforms with special focus on middle class
5. Measures -
   PIT - special focus on middle class
   Rationalisation of TDS / TCS
6. TDS - reducing rates, threshold
7. Limit for tax deduction of interest for senior citizens to be doubled
8. Tax proposals guided by following objectives :
   Encouraging voluntary compliance
   Reducing compliance burden
   Ease of doing business and investment
9. Remove TCS on loan taken from educational institutions
10. Both TDS and TCS applied on any transaction on sale of goods - proposes to omit TCS
11. Updated return facility - extend time limit for filing updated ROI from 2 yrs to 4 yrs
12. Allow benefit of 2 self-occupied properties without restrictions
13. Streamlines process of transfer pricing
14. Proposes to reduce compliance burden on small charitable trust and institutions
15. Reduce litigation in international taxation - expand safe harbor rules scope
16. AV of SOP is NIL only on fulfillment of conditions - now, AV of two SOPs can be NIL without any conditions
17. Announces Measures to promote investment and employment
18. Presumptive tax regime for certain NRs
19. Extension for start-ups - extend the incorporation by 5 yrs - incorporated before 2030
20. Specific benefits to IFSC ship units
21. Extends the benefits of current tonnage tax scheme to certain inland ships
22. Category I and II AIFs - to be provided certainty w.r.t. taxes
23. PIT reforms - NIL tax slab - raised to 12 lacs
24. NIL tax slab increased to Rs. 12 lakh !!
25. Announces measures for middle class:
    - NIL tax slab for personal taxes increased to INR 12 lakhs (new regime)
    - This limit will be 12.75 lakh Rs for salaried class
    - Slabs and rates being changed across levels (new regime)