Section 194J increases the tax deduction threshold for professional services, technical services, royalty, and sums under section 28 from Rs. 30,000 to Rs. 50,000.
Section 194D now increases the threshold for tax deduction on insurance commissions from Rs. 15,000 to Rs. 20,000, effective from April 2025.
Section 194 now exempts tax deduction on dividends to individuals if the total annual dividend does not exceed Rs. 10,000, effective April 2025.
Section 115AD is amended to raise long-term capital gains tax rate for non-residents to 12.5% from 10%, effective from April 1, 2026.
Section 80-IAC is amended to extend 100% profit deduction for eligible start-ups incorporated until April 1, 2030, effective from April 1, 2025.
Section 115UA is amended to include Section 112A for taxation of business trusts, effective from April 1, 2026, for assessment year 2026-27 onward.
Changes to Section 13 revise contribution thresholds and exclude relatives and certain concerns from specified persons, effective April 1, 2025.
Budget 2025 extends the investment deadline for Sovereign Wealth Funds and Pension Funds to March 2030, ensuring tax exemptions on long-term capital gains in India.
Section 9 is amended to exclude export-related transactions from significant economic presence, effective April 1, 2026, for assessment year 2026-27 onward.
ICSI acknowledges Budget 2025’s focus on economic growth, regulatory reforms, and entrepreneurship, emphasizing its role in shaping India’s future development.
