Union Budget 2024-25: Nirmala Sitharaman’s Focus on Simplifying Taxes
Union Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in Parliament, highlighting nine priorities aimed at achieving the goal of Viksit Bharat. She emphasized the government’s efforts to simplify taxation, improve taxpayer services, and reduce litigation.
Key Tax Measures
The Finance Minister announced a comprehensive review of the Income-tax Act, 1961, to make it concise and clear, reducing disputes and litigation. Reassessment rules will be simplified, allowing reopening of assessments beyond three years only if the escaped income is Rs 50 lakh or more, up to a maximum of five years.
For search cases, the time limit will be reduced from ten years to six years. The two tax exemption regimes for charities will be merged into one, and various TDS rates will be adjusted, including reducing the TDS rate on e-commerce operators from 1% to 0.1%.
Digitalization and Dispute Resolution
All major taxpayer services under GST, Customs, and Income tax will be digitalized and made paperless over the next two years. The ‘Vivad se Vishwas Scheme 2024’ will resolve certain income tax disputes pending appeal. Monetary limits for filing appeals related to direct taxes, excise, and service tax will be increased.
Revenue Implications
The budget proposes increasing the Security Transactions Tax on futures and options of securities and taxing income received on the buyback of shares. These measures are expected to result in a total revenue forgone of about Rs 7,000 crore annually, with Rs 37,000 crore forgone and Rs 30,000 crore additionally mobilized.
Doubts Revealed
Nirmala Sitharaman -: Nirmala Sitharaman is the Finance Minister of India. She is responsible for managing the country’s finances, including presenting the budget.
Union Budget -: The Union Budget is a financial plan presented by the government every year. It shows how the government plans to spend money and collect taxes.
Income-tax Act -: The Income-tax Act is a law in India that tells how people and businesses should pay taxes on their income.
tax exemption regimes -: Tax exemption regimes are rules that allow certain people or organizations, like charities, to not pay some taxes.
digitalizing taxpayer services -: Digitalizing taxpayer services means using computers and the internet to make it easier for people to pay taxes and get help with tax issues.
Vivad se Vishwas Scheme 2024 -: The ‘Vivad se Vishwas Scheme 2024’ is a new plan to help people and businesses resolve their tax disputes with the government more easily.
revenue forgone -: Revenue forgone means the amount of money the government will not collect because of tax exemptions or reductions. In this case, it’s about Rs 7,000 crore every year.
