Goods and services purchased online will also be taxed as a decision has been made to impose tax on individuals conducting online business.
According to details surfaced on Tuesday, use of e-commerce platforms for business will attract taxation. Income tax rate on interest income proposed to increase by 5%. The tax rate is proposed to rise from 15% to 20%, according to the budget document.
This increase will apply to passive income—income not earned through active means. The proposed tax will not apply to income earned through National Savings Schemes, as per the official budget document. Businesses operating via e-commerce platforms will be required to submit monthly transaction data and tax reports.
A 25% tax has been proposed on income generated on the basis of loans, according to the budget document. The tax rate on capital gains from shares remains unchanged, as stated in the budget.
