Interim Budget 2024 offers relief via direct tax reforms

Key takeaways:

• The Centre will withdraw all tax demands up to ₹ 25,000 pertaining to FY10 and up to ₹10,000 for FY11-15.
• The move is slated to benefit 1 crore taxpayers around the country.

In a move aimed at providing relief to taxpayers, the interim Union Budget for the fiscal year 2024-25 has proposed sweeping reforms in direct taxes. Finance Minister Nirmala Sitharaman today presented the budget, outlining measures that are expected to benefit 1 crore taxpayers across the country.

One of the key highlights of the budget is the decision to withdraw all tax demands up to ₹25,000 pertaining to the financial year 2009-10. This move comes as a relief for individuals who have been grappling with pending tax demands, many dating as far back as 1962 according to the finance minister. The government's decision reflects a commitment to ease the burden on taxpayers and streamline the taxation process.

Furthermore, the budget addresses concerns related to the financial years 2010-11 to 2014-15 by proposing to withdraw tax demands up to ₹10,000. This measure is anticipated to alleviate the financial strain on taxpayers and bring respite to individuals and businesses alike.

The finance minister emphasised that these reforms are aligned with the government's broader objective of simplifying the tax structure and contributing to the nation’s growth. By withdrawing these tax demands, the government aims to create a more taxpayer-friendly system, encouraging voluntary compliance and reducing the burden of prolonged legal battles.

Conclusion

As the nation grapples with global economic challenges and strives to recover from the impact of the pandemic, the interim Union Budget's focus on direct tax reforms is seen as a proactive step to support individuals and businesses all over India.