Interim Budget 2024-25: Sitharaman maintains tax rates, introduces slight relief measures

New Delhi | Updated: 01 February, 2024 1:11 pm IST

Nirmala Sitharaman unveils 2024-25 income tax slab.

NEW DELHI: In the 2024-25 interim Budget announcement, Union Finance Minister Nirmala Sitharaman confirmed the preservation of current taxation structures, including direct and indirect tax rates, along with import duties. Sitharaman highlighted a notable improvement in the refund process, reducing the average time from 93 days in 2013-2014 to a mere 10 days in the past year. She also reported a substantial 50 per cent rise in the average real income of the populace.

In the 2024-25 Interim Budget, Sitharaman provided relief to taxpayers by eliminating a significant portion of unresolved minor direct tax claims. During her address, the Finance Minister explained, “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 anxiety to honest tax payers and hindering refunds of subsequent years.

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“I propose to withdraw such outstanding direct tax demands up to Rs 25,000 pertaining to the period up to financial year 2009-10 and up to Rs 10,000 for financial years 2010-11 to 2014-15. This is expected to benefit about a crore tax-payers.”

In the previous Budget, Nirmala Sitharaman presented five significant changes in personal income tax aimed at assisting the middle class. She emphasised that the new tax regime would be the default option, but taxpayers had the choice to adhere to the old one.

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Sitharaman suggested increasing the rebate threshold from Rs 5 lakh to Rs 7 lakh under the new tax regime. Consequently, individuals opting for the new tax structure would be exempt from paying taxes on annual incomes up to Rs 7 lakh.

The Parliament’s Budget session commenced on January 31 and is scheduled to conclude on February 9. Anticipated to coincide with the Lok Sabha elections around April-May, the newly elected government is expected to unveil the complete Budget in July.

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