Finance Minister Nirmala Sitharaman has introduced her sixth Union Budget in a row. In this pre-election Budget, although the federal government kept away from saying any main populist measure, the finance minister supplied some reduction to people on private taxation in addition to startups. Here are the non-public taxation bulletins in the Interim Budget 2024-25:
No Changes in Personal Tax Rates
Suresh Surana, founding father of RSM India, mentioned, “In line with the past parliamentary practice, the interim budget does not propose any major structural change in the tax rates and continues the same as per last year. Under the new regime, a person having gross income up to Rs 7 lakh shall have NIL tax liability.”
Health & schooling cess @ 4 per cent is levied on mixture of tax quantity and surcharge quantity.
A rebate of Rs 12,500 is obtainable in the case of the previous tax regime for a complete earnings as much as Rs 5,00,000 and of Rs 25,000 in the case of the brand new tax regime as much as a complete earnings of Rs 7,00,000. Marginal tax reduction is obtainable in the case of the brand new tax regime for earnings exceeding Rs 7,00,000.
Surcharge on capital beneficial properties and dividend taxation unchanged at 15 per cent.
Waiver of Old Trivial Tax Demands
“In the Interim Budget 2024, the Proposal of waiver of old unreconciled trivial tax outstanding is in line with the Government’s vision to improve ease of living and ease of doing business. There are 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, which continue to remain on the books, causing undue hardship, administrative difficulties and hindering refunds of subsequent years,” Surana mentioned.
The proposal is to withdraw such excellent direct tax calls for as much as Rs. 25,000 pertaining to the interval as much as monetary yr 2009-10 and as much as Rs. 10,000 for monetary years 2010-11 to 2014-15. No particular point out has been made about whether or not this tax proposal could be relevant for particular person or company taxpayers. it’s anticipated to total profit about 1 crore taxpayers and is extraordinarily welcome. There aren’t any particular proposals in the Finance Bill 2024 in this respect and it’s doubtless {that a} separate round shall be issued by the CBDT to offer the aforesaid reduction.
No Changes in Basic Exemption Limit
“As per the current tax laws, the Basic Exemption Limit (BEL) under old tax regime is Rs 2,50,000, which has remained the same since its last revision in Budget 2014. Even under the new tax regime, the basic exemption limit is Rs 3,00,000,” Surana mentioned.
Considering that the price of residing has elevated multi-fold instances in the previous decade, it was anticipated that the mentioned primary exemption restrict be elevated to Rs 3,50,000 underneath each regimes. Enhancing the mentioned primary exemption restrict could profit a lot of taxpayers and tax filers out of the about 7 crore taxpayers, he added.
Due Date Extension for Filing Belated Tax Return to End of Assessment Year
The present due date for submitting a belated return is December 31 of the related evaluation yr. For occasion, the belated return for the monetary yr 2023-24 could be filed by December 31, 2023. Such submitting of a belated return would entice late charges of Rs 5,000 (restricted to Rs 1,000 whereby the overall earnings of the taxpayer doesn’t exceed Rs 5 lakh).
“There are a large number of tax filers who miss the deadline of the belated return due to personal exigencies, delay in getting or collating data. It was expected that belated returns should be permitted up to March 31 but can require a higher fee of Rs 10,000. This would have ensured that while the tax filer is penalised, he does not become a delinquent tax filer,” Suresh Surana mentioned.
“We can still hope that the increase in basic exemption limit and the belated return-related relaxations will be introduced in the Final Budget,” Surana mentioned.
