DIRECT TAX PROPOSALS – KEY POINTERS • New Income Tax Act to come into force from 1 April 2026 • Simplified tax rules and forms to be notified shortly • Forms redesigned for easy compliance by ordinary taxpayers • Interest awarded by Motor Accident Claims Tribunal to natural persons to be exempt from income tax • TDS on such interest to be completely removed • TCS on overseas tour packages reduced: • From 5% / 20% → 2% (no threshold) • TCS on remittances for education & medical purposes: • Reduced from 5% → 2% • Supply of manpower services specifically included under contract payments to remove ambiguity • TDS rate on such services capped at 1% / 2% • TCS on alcohol, scrap, minerals rationalised to 2% • TCS on tendu leaves reduced from 5% → 2% • Role-based automated process for lower / nil TDS certificates • No physical application before Assessing Officer required • Form 15G / 15H: • To be submitted once and shared digitally with multiple companies Filing & Revision of Returns • Time limit for revising return extended till 31st March • Earlier: 31st December • Subject to nominal fee • Staggered due dates: • ITR-1 & ITR-2: 31st July • Non-audit cases / trusts: 31st August Non-Resident Transactions • TDS on sale of immovable property by non-resident: • To be deposited through resident buyer • Using PAN-based challan • TAN requirement removed One-Time Foreign Asset Disclosure Scheme (6 months) Applicable to students, young professionals, small taxpayers Category A • Undisclosed income / asset up to ₹1 crore • Pay: • 30% tax + 30% penalty • Immunity from prosecution Category B • Asset value up to ₹5 crore • Pay: • ₹1 lakh fee • Full immunity from penalty & prosecution