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Interim Budget 2024: A trailer of the visionary roadmap to a “developed India” – key tax proposals to know about

by Ravi Jain
Finance Minister set the stage for ‘Developed India by 2047’ on the core principles of ‘Sabka Saath’, ‘Sabka Vikas’, ‘Sabka Vishwas’, adding ‘Sabka Prayas’ as a new theme in the interim budget. ,
Four major strategic areas of this budget emerged as GYAN: G for poor welfare, Y for youth empowerment, A for Anna-data i.e. farmer welfare and N for Nari Utthan i.e. support for women entrepreneurs. These are the pillars of a comprehensive inclusive development. The government’s commitment to sustainable development under the Amrit Kaal strategy includes achieving ‘net zero’ by 2070, installing rooftop solar for one crore homes and strong health initiatives.
The resilience of the Indian economy is at the center of positive indicators such as a decline in the current account deficit as a percentage of GDP, a decline in the unemployment rate and a significant increase in digital transactions. These data confirm the strength of the economy, reflecting a trajectory of growth and stability.
The achievements in taxation reforms have been nothing short of remarkable, direct tax collections have more than tripled in the last decade, the number of tax return filers has increased by 2.4 times, the average processing time of tax returns was 93% in FY 2013-14 Has decreased since days. An effective 10 days in FY 2023-24, resulting in prompt refund issuance. These are the results of consistent progressive measures, eliminating the need for any last-minute populist measures, and are best avoided.

Major tax proposals in Budget 2024:

Retained tax rates: No change in current tax rates for both direct and indirect taxes is a good indicator of stability and predictability for investors and taxpayers.
Demand for waiver of old tax: Waiver of minor, disputed and incontrovertible outstanding tax demands is a welcome step. This includes refund of outstanding direct tax demands up to Rs. Up to Rs 25,000 for the period up to FY 2009-10 and Rs 10,000 for the period up to FY 2010-11 to 2014-15.
Sunset section detail: The government’s commitment to promoting a business-friendly environment is evident from the intention to extend specific tax benefits for investments by start-ups, sovereign wealth funds/pension funds and certain IFSC units. This extension has now been extended till March 31, 2025. This can help in creating a favorable scenario for business.
Tax collection at source: In line with the CBDT notification issued earlier, the provisions relating to collection of tax at source in respect of remittances under the Liberalized Remittance Scheme have now been formally incorporated in the Finance Bill, 2024, providing for a rate of 20% for amounts exceeding Rs. It has been determined. 7 lakhs in a financial year.
Extension of faceless scheme deadline: The Finance Bill, 2024 proposes to extend the deadline for introducing faceless scheme by the Central Government for transfer pricing proceedings, DRP proceedings and ITAT proceedings till March 31, 2025.
interim budget 2024 It may not have proposed significant tax announcements, but it presents a very good prelude to the full budget after the upcoming elections. The four pillars of knowledge have to cover a large part of India, keeping in mind the potential impact on the population. The focus of the interim budget on the tax front is like a report card, highlighting the maturity achieved by our tax system. Enhancement of taxpayer services was emphasized as a major priority.
(Ravi Jain is Partner, Vialto Partners. Vikas Narang, Director and Pawan Digga, Manager, Vialto Partners contributed to the article. Views are personal)

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