Budget 2024: No Changes In Tax Rates Announced; Check The Existing Tax Slabs

Budget 2024: Sitharaman announced that the processing time of tax returns has been reduced from 93 days in FY14 to 10 days

Nirmala Sitharaman said that the tax base of GST has also more than doubled since FY14, while adding that the states also have benefited.

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Finance Minister Nirmala Sitharaman on Thursday said there are no changes in tax rates for direct and indirect taxes, including import duties. During her interim Budget presentation in the Lok Sabha, the finance minister said the number of tax filers has surged 2.4 times and the direct tax collection has trebled since 2014.

Direct Tax

Sitharaman announced that the processing time of tax returns has been reduced from 93 days in FY14 to 10 days; and refunds have been made faster. The government continues to be on the path of fiscal consolidation to reduce fiscal deficit to 4.5 per cent in 2025-26. 

The FM said that in the past five years the focus of the government has been to tax-payer services. "The age-old jurisdiction-based assessment system was transformed with the introduction of Faceless Assessment and Appeal, thereby imparting greater efficiency, transparency and accountability. Introduction of updated income tax returns, a new Form 26AS and prefilling of tax returns have 26 made filing of tax returns simpler and easier," she said.

Indirect Tax

In the indirect tax section, the FM said that by unifying the highly fragmented indirect tax regime in India, Goods and Services Tax (GST) has reduced the compliance burden on trade and industry. The industry has acknowledged the benefits of GST. According to a recent survey conducted by a leading consulting firm, 94 per cent of industry leaders view the transition to GST as largely positive. According to 80 per cent of the respondents, it has led to supply chain optimisation, as elimination of tax arbitrage and octroi has resulted in disbanding of check posts at state and city boundaries. At the same time, tax base of GST more than doubled and the average monthly gross GST collection has almost doubled to Rs1.66 lakh crore, this year.

The minister said that the tax base of GST has also more than doubled since FY14, while adding that the states also have benefited.

"States' SGST revenue, including compensation released to states, in the post-GST period of 2017-18 to 2022-23, has achieved a buoyancy of 1.22. In contrast, the tax buoyancy of state revenues from subsumed taxes in the pre-GST four-year period of 2012-13 to 2015-16 was a mere 0.72," she announced during her speech.

The biggest beneficiaries are the consumers, as reduction in logistics costs and taxes have brought down prices of most goods and services, Sitharaman added.

CA Ruchika Bhagat, MD at Neeraj Bhagat & Co, said the interim 2024 Budget reinforces fiscal stability with unwavering pillars. "No alterations in income tax slabs and unchanged tax rates for companies, LLPs, and individuals. In a strategic boost to innovation, start-ups enjoy exemptions, while concessions for sovereign wealth funds extend until March 2025. A citizen-centric approach emerges through the withdrawal of direct tax demands, offering relief up to Rs 25,000 (2009-10) and Rs 10,000 (2011-2015)."

Here are the tax slabs    

New Regime 

• No tax would be levied for income up to Rs 3 lakh.
• Income between Rs 3 lakh and Rs 6 lakh will be taxed at 5 per cent (tax rebate under Section 87A is available)
• Income between Rs 6 lakh and Rs 9 lakh will be taxed at 10 per cent (tax rebate under Section 87A on income up to Rs 7 lakh is available)
• Income between Rs 9 lakh  and Rs 12 lakh will be taxed at 15 per cent
• Income between Rs 12 lakh  and Rs 15 lakh will be taxed at 20 per cent
• Income of Rs 15 lakh and above will be taxed at 30 per cent

Old Regime

• Income up to Rs 2.5 lakh will be under exemption from taxes
• Income between Rs 2.5 to Rs 5 lakh will be taxed at the rate of 5 per cent
• Income between Rs 5 lakh and Rs 10 lakh will be taxed at a rate of 20 per cent
• Income above Rs 10 lakh will be taxed at a rate of 30 per cent

I-T exemption limit is up to Rs 3 lakh for senior citizens aged above 60 years but less than 80 years, and up to Rs 5 lakh for super senior citizens aged above 80 years under the old tax regime.