The Finance Minister’s recent announcement assures the retention of current tax rates for
both direct and indirect taxes, encompassing import duties, throughout FY 2024-25.
Individuals with an income of up to Rs. 7 lakh will experience no tax liability under the New
tax system. In the realm of corporate taxes, the existing 22% tax rate for domestic
companies remains intact, while certain new manufacturing companies will enjoy a 15%
tax rate, indicating a stable corporate tax landscape.
Moreover, the Finance Minister has introduced proposals for tax benefits targeting start-
ups and encouraging investments from sovereign wealth funds/pension funds.
Additionally, the extension of the tax exemption period for specific IFSC units, initially set
to conclude on March 31, 2024, has now been extended until March 31, 2025.
Numerous small, non-verified, non-reconciled, or disputed demands, some dating back to
1962, have caused concern among honest taxpayers and hindered refunds for subsequent
years. To alleviate this, the Finance Minister proposes withdrawing outstanding direct tax
demands up to ₹25,000 for the period up to the financial year 2009-10 and up to ₹10,000
for financial years 2010-11 to 2014-15. This measure is expected to benefit around a crore
taxpayers.
While the 2024 interim budget may not usher in revolutionary changes, it offers valuable
insights into the financial well-being of the country and its forthcoming priorities.
Businesses and individuals stand to benefit from grasping the budget’s focus and
trajectory, aiding in strategic planning and informed decision-making. It’s crucial to keep in
mind, though, that the interim budget is not the final act. The final budget for FY 2024-25
will be unveiled post-elections, providing a more comprehensive view of the new government’s vision and plans for the future.
Also, check out the full blog published in the digital media, News 24.
