Interim Budget-2024: An overview of the Direct tax proposals

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Interim Budget-2024: An overview of the Direct tax proposals

 

 

The Interim Budget 2024 has brought some key highlights related to Direct Tax. Here’s what you need to know:
  1. No Changes in Income Tax Slabs i.e., No tax liability for taxpayers with income up to Rs. 7 lakhs under the      new tax regime.
   2. No Change in Tax rates for Company, LLP or any other person i.e., 22% of existing domestic companies and      15% for certain new manufacturing companies
  3. Certain tax benefits to Start-ups and investments made by sovereign wealth funds/pension funds, tax      exemption of some IFSC units earlier expiring on 31.03.2024 extended up to 31.03.2025
  4. Taxpayers service: Disputed Income Tax Demands up to Rs 25000 up to FY 2009-10 and of upto Rs 10,000 for FYs from 2010-11 to 2014-15, to be waived off/withdrawn by Government, to benefit around 1 crore taxpayers. In short, the write off the demand shall be as under:
a) Up to INR 25,000 pertaining up to FY 2010
b) Up to INR 10,000 for FY 2010-11 up to FY 2014-15
5. Timelines for certain events expiring on 31 March 2024, extended to 31 March 2025. This includes start-up and IFSC tax holiday eligible period.
6. 20% TCS applicable on LRS (except for medical and education purpose) applicable from 1 October 2023. Earlier provided by way of a notification, now codified. There is No reduction from 20% to 5%.
  1. The time limit for incorporation of Faceless Scheme for Income tax Appellate Tribunals has been extended for one more year till 31.3.2025.
  2. Further, the threshold time limit for the benefit of reduced corporate tax rate u/s 115BAB of 15% plus surcharge, in case of newly setup manufacturing Companies upto 31.3.2024, has not been extended. So new manufacturing Companies incorporated on or after 1.4.2024 will be taxed at 22% and not 15%, if they opt for the new regime.
The copy of the Finance Bill 2024 is enclosed herewith.

 

Finance_Bill (1)

 

 

 

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