The Interim Budget 2024 demonstrates Indian economic confidence amidst global economic downturns. This document addresses the ten most frequently asked queries and significant changes as perceived by the average taxpayer.
The Budget 2024 contains no adjustments to the income tax. The Finance Minister put forth a proposal to maintain the existing tax rates. Nevertheless, the modifications suggested in Budget 2023 remain valid for the subsequent fiscal years as well.
It is more prudent, in our opinion, for the Honorable FM to refrain from modifying the tax slabs and rates. It demonstrates assurance in the Indian economy and the course already established.
To begin with, the fiscal year 2023-24 budget provides significant relief to the majority of taxpayers by eliminating any effective tax on incomes below Rs. 7 lakhs. Furthermore, the budget had an impact on both the convenience of conducting business and ensuring tax compliance. In general, as an interim (vote-on-account) budget, it should not contain any decision that effect the upcoming mandate.
Budget 2024 did not propose any changes to GST and import duties. Hence the same rates and rules continues to apply for the coming periods also.
There are several benefits announced for small business in the area of loans and tax compliance and ease of doing business. Refer Indian Interim Budget 2024 Analysis
There are no additional benefits introduced for startup's but the tax benefits to startup's u/s 80IAC of Income tax act extended to 31st March 2025.
In addition, Tax incentives for venture capital funds, pension funds, and sovereign wealth investments will be extended through March 2025. Which inturn would benefit startups as they invest in them
In an effort to enhance the services provided to taxpayers, Budget 2024 suggests the withdrawal of outstanding Income Tax demands of up to Rs 25,000 for the fiscal year 2009-10, and Rs 10,000 for the fiscal years 2010-11 through 2014-15.
Yes, below are the 2 changes as per Budget 2024.
Budget 2024 has not proposed any changes in corporate affairs. Earlier rules are applicable for current year also.
No, Budget 2024 does not contain any official announcement regarding the sunset of the old tax regime. Both the Old Tax Regime and the New Tax Regime remain in effect at this time. This may be modified in the July 2024 introduction of the complete Budget 2024.
No, the finance minister has not increased any limits of 80C,80D, 24 etc. The rules applicable for FY 2023-24 continues to be applicable for FY 2024-25 also.
There are no amnesty schemes introduced to file the pending returns in Income Tax, GST and ROC. The tax payers are required to file as per the existing scheme and they are required to bear the penalties
The other reforms introduced in Budget 2024 are as follows
Covering Budget 2024 Highlights, Key Takeaways & Analysis, Calculators, Personal Income Tax, what was a hit or miss from the expectations point of view.