Income Tax Slab Budget 2024 Highlights: Finance Minister Nirmala Sitharaman is set to unveil the interim budget for the fiscal year 2024-25 today. While the budget is a vote-on-account, and major reforms are not expected, there are high hopes and expectations. Some key budgetary expectations include considerations for raising the standard deduction limit and making annuity income tax-free. As stakeholders eagerly await the budget presentation, these expectations underscore the desire for measures that can positively impact standard deduction limits and taxation on annuity income.
Follow the live coverage with expert analysis, reactions, and insights as we unravel the intricacies of the Interim Budget 2024. Stay connected for up-to-the-minute updates of India’s financial roadmap.
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Budget 2024 Income Tax Live: Union Budget 2024 Income Tax Slab Changes Live, Revised Income Tax Slab Rate Live Updates
Jiger Saiya, Partner & Leader, Tax & Regulatory Services, MSKA & Associates
"Despite no major announcements, tax buoyancy is expected to increase with a focus on simplified tax laws, easier compliance, and efficient administration thereby increasing taxpayer confidence and encouraging compliance. This could result in an increased tax base."
Dr. Suresh Surana, Founder, RSM India
"In line with the Finance Minister’s earlier statement, no structural changes have been made on the Direct taxes and Indirect taxes front. The Budget speech highlights the government’s resolve to continue the growth momentum of the Indian economy. The Indian economy is expected to grow by 7.3% for FY 2023-24 as against 7,2% for FY 2022-23. The growth rate for FY 2024-25 is estimated by the IMF to be 6.5% but may even touch 7%. Some of the key reasons driving this growth are favourable demographics, digital revolution and India’s talent pool, political stability and decisive leadership. The government has taken several policy reforms resulting in strong macro-economics, Make in India initiative resulting in boost for the manufacturing sector, favourable ecosystem for start-ups and huge expenditure on infrastructure. These measures will enable India to maintain its envious position as the fastest growing large economy in the world."
In the interim budget, Finance Minister Nirmala Sitharaman increased capital expenditure by 11% for the next fiscal year, aiming to support the remarkable economic growth rate. She hiked capital expenditure to Rs 11.11 lakh crore for 2024-25 while trimming the fiscal deficit for this financial year to 5.8 per cent, from the budgeted 5.9 per cent of GDP, and further lowering to 5.1 per cent in the next fiscal, PTI reported.
The reform-oriented budget also addressed the concerns of the common man by providing relief from disputed small tax demands of up to Rs 25,000. Sitharaman, presenting a vote on account for 2024-25, announced no alterations in income tax rates for both individuals and corporations, as well as customs duty.
In her budget presentation, Finance Minister Nirmala Sitharaman unveiled a housing scheme specifically designed for the middle class. The initiative is geared towards supporting eligible segments of the middle class currently residing in rented houses, slums, chawls, and unauthorized colonies to either purchase or construct their own homes.
This move underscores the government's dedication to meeting housing demands and encouraging home ownership within the middle-income segment.
During her Budget presentation, Sitharaman announced a significant step to ease the burden on taxpayers by withdrawing certain "petty" tax disputes. The government's decision entails the withdrawal of disputes amounting up to Rs 25,000 related to the period before the fiscal year 2009-10.
Additionally, disputes up to Rs 10,000 for the period between FY11 and FY15 will also be withdrawn. These disputes, many dating back to 1962, have been a source of concern for honest taxpayers and have impeded subsequent year's refunds.
Sitharaman emphasized the withdrawal of such outstanding direct tax demands, benefiting approximately one crore taxpayers and aiming to provide relief and streamline the taxation process.
All union budget documents, including the Annual Financial Statement (commonly known as the Budget), Demand for Grants (DG), Finance Bill, etc., can now easily be accessed by Members of Parliament and the general public through the ‘Union Budget Mobile App.’
The app, available in both English and Hindi, ensures hassle-free access to budget documents and is compatible with Android and iOS platforms.
- No alterations in income-tax rates and slabs
- Abandonment of old and pending cases related to "petty" tax demands, some dating back to 1962
- A 50 per cent increase in the real rate of return on investments from 2014 to 2023 due to effective inflation management
- Introduction of a new scheme for constructing or purchasing homes for individuals residing or renting in chawls and slums
- Employees claiming Leave Travel Allowance (LTA) will reap the advantages of tourist hubs
Aastha Dhowan, Partner, NA Shah Associates:
"The average processing time to process income tax returns having come down to 10 days from 93 days is a fantastic indicator of innovation in technology being used in the right direction."
Describing the interim Budget as the 'Viksit Bharat' Budget, PM Modi asserted that it establishes the groundwork for a developed India. Speaking to the public shortly after the Budget presentation in Lok Sabha, the PM highlighted its inclusive benefits for every segment of society.
Budget 2024 Income Tax Slab Live Updates: Taxpayers, salaried class disappointed
Tax experts were looking for additional measures to enhance the appeal of the New Tax Regime as it still remains unattractive for a majority of taxpayers, especially in the higher tax brackets who also make tax-saving investments.
Budget 2024 Income Tax Slab Live Updates: 'Government has brought 10 million smiles to taxpayers'
Sandeep Shah, Managing Partner, N.A. Shah Associates
“The government has brought 10 million smiles to taxpayers by eliminating outstanding demands below 25k upto FY 2009-10 and below 10k upto FY 2014-15. This also means they are using their database wisely.”
Finance Minister Nirmala Sitharaman has concluded her presentation of the Interim Union Budget, delivering a speech lasting slightly less than an hour. It is worth noting that her longest-ever speech was in 2020, lasting two hours and 40 minutes, while her speech last year was approximately 87 minutes.
During the presentation of the interim Budget, Finance Minister Nirmala Sitharaman announced that there would be no alterations to taxation. She proposed to maintain the existing tax rates for both direct and indirect taxes, including import duties.
The Finance Minister also highlighted a significant reduction in the average time for refunds, decreasing from 93 days in 2013-2014 to just 10 days in the past year. Additionally, she noted a noteworthy increase of 50% in the average real income of the people.
Number of tax filers swelled by 2.4 times, direct tax collection trebled since 2014, says FM.
The revised estimate for the fiscal deficit in the Financial Year 2024 is 5.8 percent. Fiscal deficit represents the disparity between the government's revenue and expenditures and is anticipated to persist at 5.1 percent of the gross domestic product.
Finance Minister Nirmala Sitharaman declared the extension of the Ayushman Bharat scheme to encompass all ASHA and Anganwadi workers.
In January, India's manufacturing sector exhibited notable improvement, registering its fastest expansion in four months, according to a private survey. The HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, increased to 56.5, rebounding from December's 18-month low of 54.9. While slightly below the initial estimate of 56.9, the final reading remained comfortably above the 50-mark, indicating expansion. The sector has maintained growth since June 2021, with robust demand and a positive outlook contributing to this favorable performance.
Over the last decade, female enrolment in higher education has surged by 28%, with girls and women constituting 43% of enrolment in STEM courses—among the highest globally. These initiatives have led to a rise in women's participation in the workforce. FM Sitharaman highlights key measures, including the criminalization of triple talaq, one-third reservation of seats for women in Parliament and state assemblies, and allocating over 70% of houses under PM Awas Yojana to women, contributing significantly to their enhanced dignity.
Finance Minister Nirmala Sitharaman stated that the government is striving to transform India into 'Viksit Bharat' by 2047. She emphasized the commitment to inclusive development with the mantra of "sabka sath, sabka vikas".
Nirmala Sitharaman unveils the Union Interim Budget 2024-25 in the Lok Sabha. "Our young country has high aspirations, pride in its present and hope and confidence for a bright future," she said. The FM added that the Narendra Modi-government will win with impressive mandate in Lok Sabha 2024 elections.
Nirmala Sitharaman has started her Interim Budget presentation in the Parliament.
During today's cabinet meeting, Prime Minister Narendra Modi informed his ministers that this budget is designed in the best interest of the people and emphasised its positive impact on the masses.
Nirmala Sitharaman, along with other ministers reached Rashtrapati Bhawan ahead of the Budget presentation. Pictures surface.
"It is an important day," Union Minister Arjun Ram Meghwal said as the government is set to present interim Budget at 11am.
During the last Budget, Finance Minister Nirmala Sitharaman introduced six significant announcements on personal income tax:
- Default regime shift to New Income Tax Regime
- Changes in Income Tax Slabs for the New Tax Regime
- Standard Deduction Benefit under the New Income Tax Regime
- Raised Tax Rebate Limit
- The highest surcharge rate in personal income tax was reduced from 37% to 25% in the new tax regime for income above ₹2 crore
- The limit of tax exemption on leave encashment for the retirement of non-government salaried employees was raised from ₹3 lakh to ₹25 lakh
Interim Budget copies arrive in the Parliament. Nirmala Sitharaman, along with other ministers, has also reached the Parliament where she will present the Union Interim Budget.
Ensuring the confidentiality of the Budget, particularly in the internet era, involves meticulous efforts, and remarkably, there has been no leak in over seven decades. From 1951 to 1980, the Budget was printed at a press on Minto Road. Subsequently, a government press was established in the basement of the North Block.
Prior to the Budget announcement, the finance ministry office implements heightened security measures, limiting access for media personnel until the presentation. Those involved in Budget preparation undergo scrutiny by the Intelligence Bureau, in coordination with the Delhi Police.
An intelligence team, headed by the joint secretary, vigilantly monitors the activities of officials engaged in the process.
The finance ministry's decade-long assessment of the economy highlighted that India has achieved a growth rate of 7%, outperforming the global growth rate of 2%. This performance is deemed 'qualitatively superior' compared to the 8%-9% growth achieved when the global economy expands by 4%, as noted by the ministry.
Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, and other cabinet members are participating in a Cabinet meeting, a procedural step to approve the 'vote-on-account' budget.