Union Budget 2025 – Key Taxation Highlights for Businesses

1. Corporate Tax Concessions for MSMEs

To boost micro, small, and medium enterprises (MSMEs), the corporate tax rate has been reduced from 22% to 20% for companies with an annual turnover of up to ₹100 crore. This move is expected to provide significant relief to small businesses grappling with post-pandemic challenges.

2. Introduction of E-Invoicing for Turnover Above ₹3 Crore

Starting October 1, 2025, e-invoicing will be mandatory for all businesses with a turnover exceeding ₹3 crore. This expansion is part of the government’s continued push toward digitization and transparency in the GST regime.

3. Extended Due Dates for Tax Filing

The due dates for income tax return filing for corporates have been extended by 15 days, providing more flexibility for taxpayers and consultants alike. The new deadline for FY 2024–25 is November 15, 2025.

4. Simplified TDS Structure for Freelancers & Gig Workers

Acknowledging the growing gig economy, a flat TDS rate of 5% has been introduced for freelance and gig-based income above ₹2.5 lakh annually. This aims to reduce confusion and avoid excessive deduction at source.

5. Increased Penalty for Late Filing under GST

Late filing penalties under GST have been revised. Effective June 1, 2025, the minimum late fee has been increased from ₹50 to ₹100 per day (capped at ₹10,000). Businesses must ensure timely filings to avoid financial setbacks.

Srikanth Sagar & Associates’ Take:

These changes reinforce the government's focus on ease of doing business while ensuring compliance through technology. Businesses should revisit their accounting systems and tax strategies to align with the new regulations. Our team is here to assist you with implementation, assessment, and reporting.

Need help navigating these tax updates?
Reach out to us at contact@srikanthsagarassociates.com