The annual Union Budget updates tax codes under the Income Tax Act. The latest provisions have introduced updates to corporate tax calculations, compliance rules under Section 194-O, and extended benefits for certified startups.
Key Budget Highlights:
- Startup Tax Holiday (Sec 80-IAC): Eligible startups registered with DPIIT can claim 100% tax exemptions for 3 consecutive years out of the first 10 years of incorporation.
- TDS on E-commerce (Sec 194-O): Clarifications on TDS rates applied by marketplace facilitators on sellers.
- LTCG and STCG Updates: Modified tax rates on capital gains to simplify corporate portfolios.
Strategic Actions:
Ensure that accounting departments adjust deduction margins, corporate advance tax installments, and verify that startup DPIIT credentials remain active to prevent benefit loss.