Direct Tax provisions of Finance Bill 2024 to continue path of Viksit Bharat by 2047

With the vision of prosperous Bharat in harmony with nature, modern infrastructure and opportunities for all; today our Hon’ble Finance Minister presented its 6th Union Budget.

Although, the hon’ble Finance Minister does not propose to make any changes relating to taxation and proposes to retain the same tax rates for direct taxes and indirect taxes including import duties, however, to extend direct tax benefits till 31.03.2025 to start-ups, investments made by sovereign wealth or pension funds and IFSC units; necessary changes are proposed in Income Tax Provisions. Further, with respect to relief announced through a press release (last year in June) for TCS on LRS remittances and foreign tour packages, necessary changes are proposed in the Sec 206C(1G).

Moreover, with the aim of removing, hindering the issue of Income Tax refunds, Hon’ble FM proposed in interim budget to withdraw old disputed Income Tax Demands. Accordingly, it is proposed to withdraw tax demand of up to Rs. 25,000 for the financial year up to 2009-10 whereas tax demands up to Rs.10,000 is proposed to be withdrawn relating to the period starting from FY 2010-11 to FY 2014-15. Resultantly, this will help a lot of honest taxpayers who were not aware about their old tax demands unless proposals for adjusting recent years income tax refunds are received by them. Usually, the taxpayers don’t maintain old records of Income Tax return filed and its working. Thus, it was very difficult for taxpayers to get a reason for demand. Further, in many cases, reason for demand was raised due to short credit of TDS which was due to non-deposit of TDS by the deductor in many cases and it is difficult for the deductor to resolve the issue. Before the e-filing era, Income tax return was accompanied by specified documents supporting Computation and Tax Credits. However, on many occasions, even tax officials found it practically difficult to get old records of ITR filed and assist taxpayers in deleting demand for honest taxpayers.