Interim Budget: Retained Tax Rates, Relief for 1 Crore Taxpayers on Outstanding Direct Tax Demands
The Interim Budget 2024-25 proposes maintaining current tax rates for both direct and indirect taxes, including import duties. Union Minister for Finance, Smt. Nirmala Sitharaman, emphasized continuity in taxation and suggested extending tax benefits to start-ups and certain investments. Additionally, the budget aims to provide relief to nearly 1 crore taxpayers by withdrawing outstanding direct tax demands up to ₹25,000 for the period up to FY 2009-10 and up to ₹10,000 for FYs 2010-11 to 2014-15, addressing long-standing and disputed demands dating back to 1962.
INTERIM BUDGET PROPOSES TO RETAIN TAX RATES FOR DIRECT AND INDIRECT TAXES
RELIEF FOR CERTAIN OUTSTANDING DIRECT TAX DEMANDS TO BENEFIT NEARLY 1 CRORE TAXPAYERS
Posted On: 01 FEB 2024 12:44PM by PIB Delhi
“Keeping with the convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties,” said the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Interim Budget 2024-25 in the Parliament today.
To ensure continuity in taxation, the Union Finance Minister proposed to extend certain tax benefits to start-ups and investments made by sovereign wealth or pension funds and tax exemption on certain income of some IFSC units till 31.03.2025.
In line with the Government’s vision to improve ease of living and ease of doing business, and to provide a relief to a large number of petty, non-verified, non-reconciled or disputed direct tax demands, many of them dating as far back as the year 1962, Smt. Sitharaman proposed to withdraw such outstanding direct tax demands up to ₹25,000 pertaining to the period up to financial year 2009-10 and up to ₹10,000 for financial years 2010-11 to 2014-15. This is expected to benefit about one crore tax-payers.
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