National

Interim Union Budget 2024: Direct and Indirect tax proposals

• By PIB, New Delhi
• Feb 01, 2024
• 127

Direct taxes

• FM proposes to retain same tax rates for direct taxes
• Direct tax collection tripled, return filers increased to 2.4 times, in the last 10 years
• Government to improve tax payer services
  • Outstanding direct tax demands upto Rs 25000 pertaining to the period upto FY 2009-10 withdrawn
  • Outstanding direct tax demands upto Rs 10000 for financial years 2010-11 to 2014-15 withdrawn
  • This will benefit one crore tax payers
• Tax benefits to Start-Ups, investments made by Sovereign wealth funds or pension funds extended to 31.03.2025
• Tax exemption on certain income of IFSC units extended by a year to 31.03.2025 from 31.03.2024

Indirect taxes

• FM proposes to retain same tax rates for indirect taxes and import duties
• GST unified the highly fragmented indirect tax regime in India
  • Average monthly gross GST collection doubled to Rs 1.66 lakh crore this year
  • GST tax base has doubled
  • State  SGST revenue buoyancy (including compensation released to states) increased to 1.22  in post-GST period(2017-18 to 2022-23) from 0.72 in the pre-GST period (2012-13 to 2015-16)
  • 94% of industry leaders view transition to GST as largely positive
  • GST led to supply chain optimization
  • GST reduced the compliance burden on trade and industry
  • Lower logistics cost and taxes  helped reduce prices of goods and services, benefiting the consumers

Tax rationalization efforts over the years

• No tax liability for income upto Rs 7 lakh, up from Rs 2.2 lakh in  FY 2013-14
• Presumptive taxation threshold for retail businesses increased to Rs 3 crore from Rs 2 crore
• Presumptive taxation threshold for professionals increased to Rs 75 lakh from Rs 50 lakh
• Corporate income tax decreased to 22% from 30% for existing domestic companies
• Corporate income tax rate at 15% for new manufacturing companies

Achievements in tax-payer services

• Average processing time of tax returns has reduced to 10 days from 93 days in 2013-14
• Faceless Assessment and Appeal introduced for greater efficiency
• Updated income tax returns, new form 26AS and prefilled tax returns for simplified return filing
• Reforms in customs leading to reduced Import release time
  • Reduction by 47% to 71 hours at Inland Container Depots
  • Reduction by 28% to 44 hours at  Air Cargo complexes
  • Reduction by 27% to 85 hours at Sea ports.

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