Interim Budget 2024: Know Key Announcements & Developments

On Thursday, February 1, one day after the Budget Session began, Finance Minister Nirmala Sitharaman gave her budget speech and introduced the Interim Budget 2024–25 before Parliament.

Here are the key announcements:

Retention of the same tax rates

There will be no changes to taxation and will retain the same tax rate for direct and indirect taxes including import duty. There will be no changes in the tax rates for direct and indirect taxes, including import duties or Corporate Taxes which is 22% for existing domestic companies, and 15% for certain new manufacturing companies. There will be no tax liability for taxpayers with income up to Rs.7 lakh under the new tax regime.

Withdrawal of outstanding direct tax demand

The withdrawal of outstanding direct tax demand Up to Rs. 25,000 pertaining up to FY10 and up to Rs. 10,000 for FY11-FY15, is expected to benefit approx. 1 crore taxpayers.

Extension of tax benefits

Certain tax benefits to Startups and investments made by sovereign wealth funds/pension funds, tax exemption of some IFSC units earlier expiring on 31.03.2024 extended up to 31.03.2025.

Direct Tax Achievements of Taxation Reforms

The Direct Tax Collections more than trebled in the last 10 years. The number of return filers swelled to 2.4 times. There was a reduction in the average processing time of returns from 93 days (2013-14) to 10 days (2023-24).

GST Achievements of Taxation Reforms

Average monthly Gross GST collections doubled to ₹1.66 lakh crore in FY24. There was an increase in tax buoyancy of State revenue from 0.72 (2012-16) to 1.22 in the post-GST period (2017-23). It benefited the consumers due to the reduction in logistics costs and prices of most goods and services.