Inputs on behalf of Mr. Dhruv Chopra, Managing Partner, Dewan PN Chopra & Co.
Direct Taxation:
“In a move aimed at enhancing taxpayer convenience and reducing compliance-related stress, Union Finance Minister Nirmala Sitharaman proposed extending the time limit for revising income tax returns from 31st December to 31st March, subject to payment of a nominal fee. She further announced a staggered approach to return filing timelines to ensure smoother compliance. Under the proposal, individuals filing ITR-1 and ITR-2 will continue to have a deadline of 31st July, while non-audit business cases and trusts will be permitted additional time, with a revised deadline of 31st August. The measures are intended to ease the filing process, improve accuracy, and distribute compliance workload more evenly.”
Simplified TDS process for NRI property sales:
“FM has proposed that TDS on the sale of immovable property by non-residents will now be deducted and deposited through resident buyers using their PAN-based challan, eliminating the need for a TAN (temporary accounting number) and simplifying compliance. Accordingly, the tds will be lower than existing rates of 20%\12.5% depending on different facts. This will bring much relief to NRIs on assets they have inherited in India as ease exit process while protecting revenue and ensuring compliance for the department.”
Inputs on behalf of Ms. Sofiya Syed, Senior Consultant, Direct Tax, Dewan PN Chopra & Co.
“Finance Minister Nirmala Sitharaman announced a five-year income tax exemption for non-residents supplying capital goods and equipment to domestic manufacturers operating in bonded zones. The measure is aimed at attracting global suppliers, strengthening manufacturing capabilities, and boosting investments in high-value industrial infrastructure.”