“Retain Same Tax Rates…”: Finance Minister Says No Change In Tax Rates
Finance Minister Nirmala Sitharaman, while presenting the interim Budget 2024, announced that the government will retain the same tax rates for direct tax collection. This means the central government has not changed income tax slabs or income tax rates for the financial year 2024–25.
It is to be noted that the income tax slab changes announced in Budget 2023 are effective for the financial year between April 1, 2023, and March 31, 2024. This tax slab is set to remain unchanged for FY 2024–25, which is between April 1, 2024, and March 31, 2025. “In keeping with convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct and indirect taxes including import duties,” said Nirmala Sitharaman during the Budget speech.
Nirmala Sitharaman also said that the average processing time of returns has been reduced from 93 days in 2013–14 to ten days this year. The Finance Minister said that improving tax-payer services has been the focus of the government in the last five years. “The age-old jurisdiction-based assessment system was transformed with the introduction of Faceless Assessment and Appeal, thereby imparting greater efficiency, transparency and accountability,” Nirmala Sitharaman added.
Withdrawal of petty, outstanding direct tax demands for providing benefit to taxpayers.#ViksitBharatBudget pic.twitter.com/VPl382f3Lb
— Nirmala Sitharaman Office (@nsitharamanoffc) February 1, 2024
The Finance Minister said that the average real income of people has increased by 50 percent. Notably, average monthly gross GST collection has almost doubled to ₹ 1.66 lakh crore this year. It is worth mentioning that the Centre also proposed to withdraw outstanding direct tax demands up to Rs. 25,000 pertaining to the period up to the financial year 2009–10. Also, the outstanding demand up to Rs 10,000 would be waived off for disputes to the financial year 2010–11 to 2014–15. “This is expected to benefit about a crore tax-payers,” said Nirmala Sitharaman.
