New Delhi, April 23 – The Income Tax Department has notified that luxury items such as handbags, wristwatches, shoes, and sportswear priced above Rs 10 lakh will now be subject to a 1 percent Tax Collected at Source (TCS). The new rule came into effect on April 22, 2025.

As per agency report, this provision was introduced as part of the Finance Act 2024, following the Union Budget presented in July 2024. The TCS is applicable to specific high-value discretionary items and is aimed at enhancing oversight on luxury spending.

The responsibility to collect TCS lies with the seller, and it applies to notified goods including luxury handbags, sunglasses, high-end footwear, home theatre systems, sports apparel and equipment, yachts, helicopters, art pieces like paintings and sculptures, collectible items such as coins and stamps, and even horses used for racing or polo.

Tax partner at Nangia Andersen LLP, Sandeep Jhunjhunwala, remarked that this move reflects the government’s intent to tighten audit norms and increase scrutiny on high-value discretionary expenditure. He added that the TCS provision supports the broader policy goal of expanding the tax base and fostering greater financial transparency.

New Delhi, March 27 – The recent announcement by U.S. President Donald Trump to impose a 25 percent import duty on completely built vehicles (CBUs) and automotive components is expected to have limited impact on India’s automotive industry, according to the Global Trade Research Initiative (GTRI). As per agency report, the new tariffs will be implemented starting April 3, 2025.

Ajay Srivastava, founder of GTRI, noted that a review of India’s export data for the automotive sector in calendar year 2024 indicates minimal exposure to the United States. India exported only USD 8.3 million worth of passenger cars to the U.S., accounting for just 0.13 percent of the country’s total automobile exports of USD 6.98 billion.

Truck exports to the U.S. were also minimal, totaling USD 12.5 million, or just 0.89 percent of India’s global truck exports, further reinforcing the notion that India’s thriving automobile export business is unlikely to be significantly affected by the new tariffs.

However, GTRI did flag potential concerns in the category of chassis fitted with engines. In this segment, India exported USD 246.9 million globally, with the U.S. accounting for USD 28.2 million or approximately 11.4 percent.

The largest area of U.S. exposure remains in automotive parts and components. India exported components worth USD 2.2 billion to the U.S. in 2024, representing 29.1 percent of India’s global exports in this category. Although this might seem significant at first glance, Srivastava emphasized that the impact should be viewed in context.

Globally, the U.S. imported automotive components worth USD 89 billion last year, with Mexico accounting for USD 36 billion, China USD 10.1 billion, and India only USD 2.2 billion. Since the new 25 percent duty applies to all exporting nations, the playing field remains level.

In this light, Srivastava pointed out that India may actually benefit from this situation. With its competitive labor-intensive manufacturing and favorable import tariff structure (ranging from zero to 7.5 percent), India is well-positioned to expand its market share in the U.S. over time.

He further stated that rather than reacting with retaliatory measures, the Indian government should view the tariff decision as a neutral or even marginally beneficial development for the long term.

New Delhi (India: JJ TAX, a Startup providing Tax and Compliance Solutions, celebrates its 3^rd anniversary. JJ TAX was initially a TAX App but gradually added compliance and legal services to our gambit of services.

Over the past three years, we have empowered countless individuals and businesses to take control of their taxes and enjoy seamless financial management.

“We have been working on providing better solutions to all our members and clientele. On the occasion of our 3^rd anniversary, we will be launching “ FinnFitt“.This will provide clients with a concise report on their Financial Fitness and the remedies to achieve financial control for their Business. Going forward, we will be providing these reports to individuals as well. They say that “Health is Wealth“; we will prove that it’s vice versa also since Financial Fitness gives peace of mind and a stress-free environment to grow and achieve Financial goals – CA Jambukeswaran, Founder.

As the world continues to face financial uncertainties and tax responsibilities become increasingly complex, individuals and businesses require reliable tools to navigate the landscape effectively.

“We have recently launched a Tax calculator and HRA calculator in our App, empowering users with a comprehensive and user-friendly interface. Going forward, we plan to add more tools in the App for the users “– Mehak Malik, President of JJ TAX.

“We started during Covid and had a humble beginning. Within 3 years, we are Ranked #2 in India and #4 globally (Source-Tracxn).JJ Tax has disrupted the industry and provided unparalleled value to its users. We acknowledge the efforts put in by the JJ TAX family and the support of all our members who keep motivating us to achieve our Vision of being the Best TAX App in India. We want to make this the #YearofJJTAX and are working towards this goal “ – CEO Rashi Bajpai.

At JJ Tax, we understand the importance of connecting with its users beyond the confines of its app. Regular social media campaigns have helped create a vibrant and engaged community. Recently, the “Not A Robot” campaign gained immense popularity, showcasing the human touch behind JJ Tax. Certified Chartered Accountants(CAs) and other professionals dedicatedly responded to user queries, providing personalized and reliable assistance.

“This human-centric approach has set JJ Tax apart from its competitors, fostering trust and building long-lasting relationships. Innovative offerings have been at the core of JJ Tax’s growth. Initiatives like “Under The Money Plant” series have provided insightful content, sharing tips and strategies for financial growth and independence “– COO Leesha Arya.

Recognizing the diversity of its user base, JJ Tax takes pride in offering a chat option in Hindi. Additionally, the web version ensures ease of access, enabling users to get their financial information conveniently.

“Even during the Funding Winter, JJ TAX managed to raise funds and focussed on revenue growth to break even within a short span of its launch. This year, our focus is on partnerships, and we hope to be profitable by the end of this Financial year “– CFO Komal Kwatra.

JJ Tax has been honoured with the Best Startup Award and the esteemed Best Fintech Solution Award. These recognitions reflect our commitment to delivering groundbreaking solutions and setting new standards.

As we reflect on our achievements, we extend our heartfelt gratitude to our loyal users and the entire JJ Tax team for their invaluable contributions. Together, we have created a community built on trust, innovation, and shared success.

Looking ahead, we remain steadfast in our commitment to delivering cutting-edge solutions that redefine the financial management experience. Join us as we embark on the next chapter of our journey, where we continue to revolutionize the way you manage your finances.

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Indore (Madhya Pradesh) [India], May 22: Indore-based Chartered Accountants CA Anmol Bohra and CA Vikram Tongya have developed a groundbreaking application called Law Legends. This innovative app aims to simplify and provide comprehensive information on India’s complex Income Tax and Goods and Services Tax (GST) Acts through a video library. The two young professionals, along with a team of 30 experts, dedicated an entire year to converting over 1,000 sections and 100 subsections of these laws into easily understandable Hindi videos.

According to the enthusiastic youths, Law Legends is the first app in India to offer such a wide range of information on the law. Recognizing that these laws directly or indirectly impact almost every citizen in the country, the duo decided to bridge the gap between the legal jargon and the general public’s comprehension. With the laws being predominantly in English, understanding them has proven to be a significant challenge for many individuals.

The main objective of Law Legends is to make the complex language of these acts accessible to the masses. CA Anmol Bohra emphasized that they made extra efforts to simplify the language, as it was essential for people to comprehend the laws easily. Furthermore, the app ensures that professionals stay updated with the amendments that occur regularly, providing immediate access to all updates within the app. This feature not only saves time for professionals but also helps them stay compliant with the latest legal requirements.

The app goes beyond providing information and updates. It offers a helping hand to the common man by explaining the intricate procedures involved in these laws. The video library covers all the forms related to Income Tax and GST, making it easier for individuals to navigate through the processes. Additionally, the Law Legends app features experts who can address doubts regarding both acts in simple and understandable language. This unique combination of information, compliance support, and advisory assistance sets Law Legends apart from other legal apps.

Law Legends provides a plethora of features to its users. It offers notifications, circulars, advisories, guidelines, notes, and orders related to the Income Tax and GST Acts. The app also includes advance rulings specific to Madhya Pradesh, Rajasthan, and Chhattisgarh, all presented in Hindi. Users can find more than 1,000 section-wise videos explaining the Acts, as well as simplified videos on various forms related to Income Tax and GST. Moreover, the app offers over 50 articles, more than 20 copies of Allied Acts, over 50 procedure videos for regular use, and more than 50 draft reply formats for both Income Tax and GST, including deeds and agreements. Additionally, the app features a query solution facility to address user queries effectively.

Law Legends has revolutionized the accessibility of legal information in India. By simplifying complex laws into easily understandable videos, the app empowers individuals to navigate the intricacies of the Income Tax and GST Acts with confidence. It not only provides valuable information but also saves time for professionals and offers the necessary support to ensure compliance. With its extensive range of features, Law Legends is undoubtedly a game-changer in the field of legal information dissemination.

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New Delhi, May 19 (IANS) Experts say that the higher tax collection at source (TCS) rate of 20 per cent on overseas remittances makes it almost mandatory to file Indian income tax returns.

Kunal Savani, Partner, Cyril Amarchand Mangaldas said in many past instances, persons remitting the funds overseas (mainly for travel purpose) would accept 5 per cent TCS as additional cost and not file their Indian income tax returns. Higher TCS rate (20 per cent makes it almost mandatory for individuals remitting funds overseas to file their Indian income tax returns and claim the TCS paid either as refund or adjust it against their tax liability.

Savani said separately, 20 per cent TCS for travel expenses can also be seen as an indirect measure to support our Indian tourism industry which was the worst hit during the pandemic. This move will discourage many residents from overseas travelling and look at travel destinations within India.

The Finance Ministry in a clarification said that instances have come to notice where the LRS payments are disproportionately high when compared to the disclosed incomes.

There are no changes in medical or Education expenses -- Position stays as it was before the Finance Act 2023.

Primary Impact only on investment in assets such as real estate, bonds, stocks outside India by HNI and tour travel packages or gifts to non-residents. Those individuals remitting from their own funds are normally expected to be higher-income taxpayers, and for those remitting through institutional loans for education, a concessional rate of 0.5 per cent is provided.

While on a visit abroad, a person could use international debit cards or other methods or international credit cards for undertaking current account transactions. Payments by debit cards, etc., have been treated as LRS even earlier. Due to the exemption under erstwhile Rule 7, expenditures through credit cards were not accounted for under the specified LRS limit, which has led to some individuals exceeding the LRS limits, the Finance Ministry said.

Data collected from top money remitters under LRS reveals that international credit cards are being issued with limits in excess of the present LRS limit of USD 2,50,000. The differential treatment between debit cards and credit cards needed to be removed in the interest of uniformity and equity in the treatment of modes of drawal of foreign exchange and for capturing total expenditures under LRS for prudent foreign exchange management and to prevent by-passing of LRS limits. RBI had written to the government on more than one occasion, pointing to the need to remove this differential treatment.

Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April - March) for any permissible current or capital account transaction or a combination of both.

Further, resident individuals can avail of foreign exchange facility for the purposes mentioned within the limit of USD 2,50,000 only.

Under the LRS, in the financial year 2021-22, a total of USD 19.61 billion was remitted, rising from USD 12.68 billion in 2020-21. In 2022-23, it rose to more than USD 24.0 billion, of which overseas travel accounted for more than half.

New Delhi, April 4 (IANS) With the new financial year 2023-24 having begun from April 1, several tax rule changes have come into effect.

Let's have a look at some changes here:

The new income tax regime has become the default regime from April 1 onwards.

However, taxpayers have the option of choosing between the old and new tax regimes.

The new tax regime's standard deduction for taxable income exceeding Rs 15.5 lakh is Rs 52,500.

Tax rebate limit has been raised to Rs 7 lakh. Raising the tax rebate limit to Rs 7 lakh from Rs 5 lakh means that the person whose income is less than Rs 7 lakh, need not invest anything to claim exemptions and the entire income would be tax-free irrespective of the quantum of investment made by such an individual.

However, there's no change in standard deduction of Rs 50,000 provided to employees under the old tax regime.

Changes effected in the new tax regime are: Rs 0-3 lakh - nil. Rs 3-6 lakh - 5 per cent. Rs 6-9 lakh - 10 per cent. Rs 9-12 lakh - 15 per cent. Rs 12-15 lakh - 20 per cent. More than Rs 15 lakh - 30 per cent.

The leave encashment for non government employees has been exempted up to a certain limit. This limit was Rs 3 lakh since 2002, which now has been raised to Rs 25 lakh.

From April 1, investments in debt mutual funds have become taxable. They will be taxed as short-term capital gains now.

This would mean that investors won't be able to avail long-term tax gain benefits from these types of investments.

Even investment in Market Linked Debentures (MLDs) from April 1 onwards have become short term capital assets.

Proceeds from life insurance premium over the annual premium of Rs 5 lakh have become taxable from April 1 onwards.

The maximum deposit limit for senior citizen savings schemes has been increased to Rs 30 lakh from Rs 15 lakh from 2023-24 onwards.

The maximum deposit limit for monthly income schemes has also been increased to Rs 9 lakh from Rs 4.5 lakh for single accounts, and Rs 15 lakh from Rs 7.5 lakh for joint accounts.

The provisional figures of Direct Tax collections in India for the Financial Year 2022-23 continue to show significant growth. As of 10th February 2023, the gross collections are at ₹15.67 lakh crore, a 24.09% increase over the corresponding period last year. The net collections, after adjusting for refunds, are at ₹12.98 lakh crore, a 18.40% increase over the net collections for the same period last year.

The growth in Direct Tax collections is due to the steady increase in Corporate Income Tax (CIT) and Personal Income Tax (PIT) revenue. The growth rate for CIT collections is 19.33%, while the growth rate for PIT collections (including Securities Transaction Tax) is 29.63%. After adjusting for refunds, the net growth in CIT collections is 15.84% and in PIT collections is 21.93% (PIT only)/ 21.23% (PIT including STT).

The government has issued refunds amounting to ₹2.69 lakh crore between 1st April 2022 and 10th February 2023, a 61.58% increase over the same period in the preceding year. These figures demonstrate the government's commitment to creating a fair and transparent tax system in India.

In conclusion, the Direct Tax collections for the Financial Year 2022-23 show a steady increase, reflecting a growing economy and increased compliance with tax laws. The government's efforts to improve the tax system and provide tax refunds are also contributing to this positive trend.