Achievements of Taxation Reforms: Budget 2024

The Union Finance Minister Nirmala Sitharaman presented the Interim Budget today, ahead of the Lok Sabha elections in 2024. This was the final budget of Prime Minister Narendra Modi’s second term.

As soon as the year 2024 started, there was a lot of speculation, businessmen, finance professionals, and others had varying expectations for this interim budget. Many proposals were sent to the government for consideration and implementation.

Major Steps were taken and proposals were made for the implementation by the Finance Minister in the Budget 2024.

Achievements of Taxation Reforms

1. Direct Tax Collections more than trebled in the last 10 years.

2. The number of return filers swelled to 2.4 times.

3. Faster refunds: Reduction in the average processing time of returns from 93 days (2013-14) to 10 days (2023-24).

4. Average monthly Gross GST collections doubled to Rs.1.66 lakh crore in FY24.

5. Increase in tax buoyancy of State revenue from 0.72 (2012-16) to 1.22 in the post-GST period (2017-23).

Benefit to consumers: Reduction in logistics cost and prices of most goods and services.

Positive sentiment about GST

• 94% of industry leaders view the transition to GST as largely positive.
• 80% of respondents feel GST has led to supply-chain optimisation (As per a survey conducted by a leading consulting firm).

Decline in import release time since 2019 by: –

• 47 per cent at Inland Container Depots.
• 28 per cent at Air Cargo complexes.
• 27 per cent at Sea Ports.

Tax Proposals

Continuity in taxation:

Certain tax benefits to Startups and investments made by sovereign wealth funds/ pension funds, tax exemption of some IFSC units earlier expiring on 31.03.2024 extended up to 31.03.2025.

Withdrawal of outstanding direct tax demand: –

• Up to Rs.25,000 pertaining up to FY10.
• Up to Rs.10,000 for FY11-FY15.

Note: Expected to benefit approx. 1 crore taxpayers.

Retention of same tax rates: –

• For direct and indirect taxes, including import duties.
• For Corporate Taxes-22% for existing domestic companies, 15% for certain new manufacturing companies.
• No tax liability for taxpayers with income up to Rs.7 lakh under the new tax regime.

Allocation of funds for Specific Ministries

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