India's new Income Tax Act, 2025 consolidates presumptive taxation into a single section, simplifying structure but introducing substantive changes. These changes may increase taxable income and compliance burdens for small businesses, professionals, and freelancers by disallowing loss adjustments and potentially expanding tax audit exposure.
A same-sex couple has filed a petition in the Bombay High Court challenging Section 56(2)(x) of the Income Tax Act, which exempts gifts between spouses from tax. They argue that denying this benefit to same-sex couples is discriminatory as Indian law does not recognize their relationships as marriages. The Income Tax Department opposes the plea, calling it "misconceived" and an attempt to use tax law for marriage recognition.
The Income-tax Act, 2025 introduces a new audit trigger for businesses under presumptive taxation, explicitly linking lower-than-presumptive profit declarations to mandatory audits. This change aims to bring greater certainty to tax compliance for small businesses operating on low margins.
The Central Board of Direct Taxes (CBDT) issued an office memorandum clarifying the transition from the Income Tax Act, 1961, to the Income Tax Act, 2025. It ensures existing benefits, approvals, and pending applications filed before March 31, 2026, will continue or be processed under the new law, providing certainty to taxpayers.
The Income Tax Act 2025 introduces new limits on cash transactions to combat tax evasion. Key changes include a Rs 2 lakh daily cash receipt limit from one person, cashless transactions for loans/deposits over Rs 20,000, and limits on business expenses and donations.
Illinois has enacted the Digital Asset Tax Act, imposing a 0.2% transaction tax on crypto starting January 1, 2027. This move highlights the potential for states to levy taxes on digital assets, even as federal legislation aims to create a unified rulebook for the industry.
Illinois has enacted a $55.9 billion budget featuring a first-of-its-kind 0.2% tax on crypto assets, set to take effect in January 2027. The Digital Asset Tax Act will levy a privilege tax on digital asset brokers for customer transactions, drawing sharp criticism from industry leaders concerned about discriminatory practices and potential capital flight.
India is set to eliminate capital gains tax on foreign portfolio investors' holdings in government securities to attract overseas investment and cushion its economy from the Middle East crisis. The move, cleared by the Union Cabinet, aims to counter significant foreign capital outflows and rupee depreciation.
