The Interim Union Budget, 2024 was presented by the Finance Minister Smt Nirmala Sitaraman on 1st February, 2024. Having said that, the final Union Budget, 2024 will be presented in the Parliament after the formation of the new Government post the Lok Sabha elections. The last Union Budget of the existing government aims to focus on “Garib, Mahilayen, Yuva and Annadata”, prioritizing their needs as well as aspirations.
Interim Union Budget, 2024: Direct Tax Key Highlights:
The Finance Minister did not propose any changes in the direct taxes through the Interim Budget. And, here are the key highlights under the direct tax reforms:
No changes in the Income Tax Slab Rate
Through the Interim Budget, 2024, the Finance Minister did not propose to make any changes in the Income Tax Slab rate. Therefore, the Income Tax Slab Rates for the FY 2023-24 will continue to prevail in FY 2024-25.
No tax liability for tax payers with income up to ₹ 7 lakh
There is now no tax liability for tax payers with income up to ₹ 7 lakh, up from ₹ 2.2 lakh in the financial year 2013-2014.
Note:
Under the new tax regime, the threshold limit for non-applicability is Rs. 7 lacs. Whereas, under the old tax regime, this limit is Rs. 5 lacs.
Also Read: Know About The Income Tax Slab Rates For FY 2023-24
Increase in number of filing of Income Tax Returns
There is an increase in the number of Income Tax filers by 2.4 times. Accordingly, there has been an increase in the direct tax collection.
Increase in threshold limit under the presumptive taxation scheme
Over the years, there is an increase in the presumptive taxation scheme. These changes are as follows:
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Also Read: Know all About Presumptive Taxation Scheme
Faceless Assessment and Appeals
In addition to the above reforms, the government has put the system into transformation through the introduction of Faceless Assessments and Appeals, thereby imparting greater efficiency, transparency and accountability.
Introduction of ITR-U and AIS
Not only this, the government has introduced updated income tax returns, Annual Information Statement. Accordingly, prefilling of tax returns have made filing of tax returns simpler and easier.
Increase in period of Tax benefits to Startups
There is an increase in period of certain tax benefits to start-ups and investments by sovereign wealth or pension funds as also tax exemption on certain income of some IFSC units. And, the new period now is 31.03.2025 (earlier period was 31.03.2024)
Withdrawal of outstanding demand for certain periods:
Through the Interim Budget, 2024, the Finance Minister has made a proposal to withdraw outstanding direct tax demands up to a certain amount for certain periods. These are as follows:
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Interim Budget, 2024: Indirect Tax Highlights
Just like the direct tax, no major changes have been proposed under the Indirect Taxes, too. And, here are the key highlights of the Indirect Tax Reforms:
No changes in the GST Rate
Through the Interim Union Budget, 2024, the Finance Minister did not propose to make any changes in the GST Slab rate. Therefore, the GST Slab Rates for the FY 2023-24 will continue to prevail in FY 2024-25.
Increase in GST collection
Over the years, due to the transformation in the indirect taxes, there is an increase in the GST collection. And, the average monthly gross GST collection has almost doubled to ₹ 1.66 lakh crore.
Reforms in Customs
In addition to the above, number of steps have been taken in Customs to facilitate international trade. As a result, the import release time has been declined by 47 per cent to 71 hours at Inland Container Depots, by 28 per cent to 44 hours at air cargo complexes and by 27 per cent to 85 hours at sea ports, over the last four years since 2019, when the National Time Release Studies were first started.
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