Budget 2024 Maintains Tax Stability: No Alterations in Direct and Indirect Tax Rates

Union Finance Minister Nirmala Sitharaman presented the interim Budget for 2024, revealing a continuity in taxation. No alterations in direct and indirect tax rates, including import duties, were proposed. Sitharaman highlighted improved refund processes and a 50% rise in average real income. The government aims to withdraw tax demands up to Rs 25,000, benefiting one crore taxpayers. New and old tax slabs were outlined, ensuring stability across all categories of individuals. The full budget is anticipated in July.

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In the presentation of the interim Budget 2024, Union Finance Minister Nirmala Sitharaman assured taxpayers of a consistent fiscal environment. She emphasized maintaining the status quo in taxation, advocating for the retention of existing direct and indirect tax rates, alongside import duties. The Finance Minister also underscored the success in reducing the average refund processing time from 93 days in 2013-2014 to a mere 10 days in the past year. Furthermore, Sitharaman highlighted a noteworthy 50% increase in the average real income of the populace.

Sitharaman's proposal specifically stated, "I propose to retain the same tax rates for direct and indirect taxes, including import duties." Additionally, she announced the government's intent to withdraw tax demands up to Rs 25,000 up to the fiscal year 2009-10, aiming to benefit around 1 crore taxpayers.

For the new tax regime, Sitharaman outlined the following slabs: no tax on income up to Rs 3 lakh, 5% tax on income between Rs 3-6 lakh, 10% on income between Rs 6-9 lakh, 15% on income between Rs 9-12 lakh, 20% on income between Rs 12-15 lakh, and 30% on income of Rs 15 lakh and above. These rates apply universally to all categories of individuals, including regular citizens, senior citizens, and super senior citizens.

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In comparison, the old tax regime maintained exemptions for income up to Rs 2.5 lakh and taxed income between Rs 2.5 to Rs 5 lakh at 5%. Personal income from Rs 5 lakh to Rs 10 lakh was taxed at 20%, while income above Rs 10 lakh attracted a 30% tax rate. The exemption limits for senior and super-senior citizens were distinct in the old regime.

The full budget, with more comprehensive details, is anticipated to be presented in July, regardless of the government being re-elected or newly formed. This budget announcement falls under the business category, emphasizing the fiscal policies and taxation framework for the upcoming financial year.