Direct Tax changes proposed by Union Budget 2024

The Budget 2024 i.e. Interim Budget is presented by Finance Minister Nirmala Sitharaman in the parliament today. This is the final budget of Prime Minister Narendra Modi’s second term, ahead of the Lok Sabha elections in 2024. The complete budget for the financial year 2024-25 will not be issued until the next government is formed following the general elections.

Before the Budget, there were lots of speculations going around, industrialists, finance professionals and others had ranges of expectations from this interim budget. Many proposals were sent to the government to consider and implement.

Let’s see what this budget has proposed for the general public.

Achievements of Taxation Reforms

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

2. 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).

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.