The Union Budget 2024, “Viksit kaal,” presented by Finance Minister Nirmala Sitharaman, reflects a meticulous approach to addressing the nation’s economic challenges and fostering growth. The budget focuses on four major groups – the poor, women, youth, and farmers, demonstrating a commitment to inclusive development. It’s important to note that this interim budget will only be in place until July 2024 (until election results come out). This article explores the key highlights of the budget, including strategic initiatives and financial allocations designed to propel India towards a resilient and equitable future.

Union Budget 2024 Highlights: Tax-Related

Stability in Tax Rates and Import Duties:

The Finance Minister assured stability by announcing that no direct or indirect proposals would be made on tax rates, including import duties. The changes made in 2023 will continue to apply.

2023 Direct and Indirect Tax Recap:

The Union Budget 2023 introduced significant changes in the tax regime. The Union budget 2023 highlights were:

• New tax brackets starting from INR. Three lakhs under the New Tax Regime.
• Tax rebates for income up to INR 7 lakhs; hence, there is no tax for income up to this limit.
• Salaried individuals also benefit from a Rs 50,000 standard deduction under the New tax regime.
• No changes in the old tax regime; the new regime is considered by default for ITR filing.
• Surcharge reduced to 25% from 37% for those over Rs. 5 crore.
• The TDS rate was reduced to 20% on taxable EPF withdrawals instead of the maximum marginal rate applicable.
• Startups get a 10-year carry-forward of losses and an extended exemption u/s 80IAC.
• Presumptive taxation limits increased for businesses from 2 Cr. to 3 Cr and professionals from 50 lakhs to 75 lakhs.
• Cooperative societies have a higher Rs 3 crore limit for TDS on cash withdrawals.
• Proposal for TDS and taxability on net winnings for online games without any threshold.
• Additionally, the filing of returns/statements was restricted to a maximum period of three years from the due date of filing of the relevant return/statement.
• They also enabled the unregistered intra-state supply of goods through e-commerce operators for suppliers and composition taxpayers.

Tax Reforms Benefiting Taxpayers:

• The finance minister shared their continued efforts to reduce the average return processing time and provide faster refunds. She also shared that there has been a reduction in the average return processing time from 93 days in 2013-14 to 10 days in 2023-24.
• The Finance Minister announced the withdrawal of outstanding direct tax demands, with amounts up to ₹25,000 for the period up to the financial year 2009-10 and up to ₹10,000 for the financial years 2010-11 to 2014-15. This move is expected to benefit 1 crore taxpayers, providing relief and fostering a positive economic environment.