CA.Sangam Aggarwal
Quick Summary
Direct Taxation
- No major changes in Income Tax slab rates, including for companies.
- Certain tax benefits to start-ups and investments made by sovereign wealth funds/pension funds extended upto 31.03.2025 under section 80IAC. There is no extension for section 115BAB.
- Tax exemption of some IFSC units earlier expiring on 31.03.2024 extended upto 31.03.2025.
- Withdrawal of outstanding demand, which will benefit approx. 1 crore taxpayers:
- upto Rs. 25,000/- pertaining to the period upto F.Y. 2009-10
- upto Rs. 10,000/- for F.Y. 2010-11 to F.Y. 2014-2015
Achievements under Direct Taxation
- Direct Tax Collections more than trebled in last 10 years
- Number of return filers swelled to 2.4 times
- Faster Refunds – reduction in average processing time of returns from 93 days in FY 2013-14 to 10 days in FY 2023-24.
Indirect Taxation
- No major changes under Indirect Taxes including GST.
- There is amendment in Section 20 of CGST Act w.r.t. Input Service Distributor, now registration for ISD is mandatory.
Achievements under Indirect Taxation
- Approx 94% of industry leaders view the transition to GST as largely positive.
- Tax base of GST has been more than doubled earlier it was 68 lakhs and now it is 140 lakhs approx.
- Average monthly Gross GST collections doubled to Rs. 1.66 lakh crore in F.Y. 2023-24.
- Increase in tax buoyancy of State revenue from 0.72 in F.Y 2012-16 to 1.22 in the post-GST period i.e. F.Y. 2017-2023.
- Decline in import release time since 2019 by:
- 47 per cent at Inland Container Depots
- 28 per cent at Air Cargo complexes
- 27 per cent at Sea Ports.
FAQ :
No, there are no major changes to Income Tax slab rates for individuals or companies in Budget 2024.
Tax benefits for startups and investments made by sovereign wealth funds/pension funds under section 80IAC have been extended up to March 31, 2025. Tax exemption for some IFSC units expiring on March 31, 2024, is also extended to March 31, 2025.
Yes, outstanding tax demands will be withdrawn for approximately 1 crore taxpayers. This includes demands up to Rs. 25,000 for periods up to FY 2009-10 and up to Rs. 10,000 for FY 2010-11 to FY 2014-2015.
There are no major changes to GST. However, an amendment to Section 20 of the CGST Act makes registration for Input Service Distributors mandatory.
Direct tax collections have more than trebled in the last 10 years, the number of return filers has increased significantly, and the average processing time for returns has reduced from 93 days in FY 2013-14 to 10 days in FY 2023-24.
Approximately 94% of industry leaders view the GST transition positively. The GST tax base has more than doubled, and average monthly Gross GST collections have doubled to Rs. 1.66 lakh crore in FY 2023-24. Import release times have also seen significant declines since 2019.
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