EV and Mobile Battery Production
The government has eliminated import duties on 35 capital goods used in EV battery production.
Similarly, import duties have been removed on 28 items used in mobile phone battery production.
This move aims to stimulate domestic manufacturing within these sectors.
Customs Tariff Rationalization
The Finance Bill 2025 includes customs tariff rationalization.
This is designed to boost domestic production and enhance export competitiveness.
The government aims to achieve this by reducing duties on raw materials.
This is also intended to make domestic products more cost-effective.
Finance Bill 2025 Amendments
The Lok Sabha passed the Finance Bill 2025 with 35 official amendments.
One key amendment was the removal of a 6% digital tax on online advertisements.
Income Tax Act Replacement
A new Income Tax Bill is being developed to replace the Income Tax Act of 1961.
This new bill will allow income tax officers to examine digital records for assessment purposes.
Foreign Income and Asset Disclosure
The Income Tax department conducted a “nudge” campaign.
This campaign encouraged taxpayers to voluntarily disclose their foreign income and assets.
This resulted in the declaration of foreign assets worth ₹29,208 crore and foreign income of ₹1,089 crore by 30,161 taxpayers.
Personal Income Tax Collection Projections
Personal income tax collection for 2025-26 is projected at ₹13.6 lakh crore.
The Revised Estimates for 2024-25 is ₹12.2 lakh crore.
“Marginal relief” will be provided to taxpayers whose annual income exceeds the ₹12 lakh threshold for zero tax liability.
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