Personal Taxation: What has changed in Interim Budget 2024?

Personal Taxation: What has changed in Interim Budget 2024?
Personal Taxation: What has changed in Interim Budget 2024?
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The Finance Minister has made no structural changes in the interim budget resulting from parliamentary practice. Here are some crucial aspects: However, many of these firms’ branches, which appeared to have gained more ground with government support, needed to be managed better.

Personal Tax Rates Stability.

As per the practice of past parliaments, the interim budget does not introduce any significant package or structural change as in tax rates, and this continues to be the same as last year. A person earning a gross income of up to Rs 7 lakh will, under the new regime, be exempt from paying Income Tax.

The health & education cess @ 4% is imposed on the total tax amount and surcharge amount.

* Rebate of Rs. 12,500 in the event of the old tax regime for a total income at most Rs.5,00,000 and of Rs. Rs 25,000 in case of new tax regime up to total income not exceeding. 7,00,00. Tax rebate is allowable if a person opts for the new tax regime over his income of more than Rs..7,00,000.

* Capital gains and dividend taxation surcharge are unchanged at 15%.

Dimissionment of the ancient insignificant Temporary Tax Demands

The Proposal of waiver that is proposed for the Interim Budget 2024 by waiving off old unreconciled trivial tax outstanding conforms to what the Government has envisioned in terms of improving ease and standards of living as well as easing doing business. The amount of those petty, unverified, unreconciled, or undisputed assessments for direct taxes was considerable and included many old demands—some even from 1962 that remained in circulation, hindering people’s lives and causing hardship and administrative difficulties, as well as restraining refunds the following years.

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The recommended course is to cancel such outstanding direct tax demands not up to Rs. Of the 25,000 pertaining to financial years up to 2013-14 and worth Rs. In the financial years 2010-11 to 2014, augmented PVs included TP, Jacobs, and WSP in later years. Deno’s three shops were purchased from the National Greengrocers Scheme at a cost of £658,39 million, rising as Scottish Business Association Ltd (SBAL) was told Nothing, however, is mentioned concerning whether this tax proposal will apply to individual or corporate taxes.

It is expected to benefit about a crore taxpayers, and it is very much welcome. With regard to this, there are no distinct provisions in the Finance Bill 2024, and a separate circular would most likely be issued by CBDT that provides relief stated above.

But no modifications were made to the Basic Exemption Limit.

Keeping with the current tax legislation, under the old regime, BEL is Rs 2,50,00 which has always been unchanged since its recent change in Budget Formulation of FY14. Even in the new tax scheme, the basic exemption limit is Rs 3,00,000. With an eye on the fact that the cost of living has multi-folded in a decade back, the said basic exemption limit was expected to be increased up to Rs 3,50,00 under both regimes. Improving the said basic deduction threshold can help vast numbers of taxpayers, and income assesses out about 7 million estimated number of such people.

The provision of an extension in the due date for filing belated tax returns is to be up to the end of the assessment year.

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The current cut-off for the late filing return is the 31st of December, the relevant assessment year. For example, the late filing for Financial Year 2023-24 will be sixty days from its end, i.e., it can be filed by December 31st of the same year as a taxpayer’s last business day. Filing such a belated return would attract late fees at the rate of Rs. Rs 5,000 (limited to Rs.1000 wherein the overall income of taxpayer doesn’t cross lower than five lakh rupees). Many taxpayers fail to get the late return due to Aprtaxeso personal necessities bookkeeping inefficientness and delay in obtaining or compiling data. Accordingly, belated returns should have been allowed until the end of March but may require a higher charge of Rs 10,000. This would have guaranteed that as the taxpayer is penalized, he or she does not become a delinquent it they are to bear this bane with more than one act of ignorance and apathy.

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Ankit Kataria