India Budget 2024: FM Nirmala Sitharaman announces 'no' changes in tax

Indian Finance Minister Nirmala Sitharaman on Thursday (Feb 1) said no changes have been made in the tax slabs in the interim Budget.

"As for tax proposals, in keeping with the convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties," Sitharaman saidduring her budget speech in parliament.

"However, certain tax benefits to start-ups and investments made by sovereign wealth or pension funds as also tax exemption on certain income of some IFSC units are expiring on 31.03.2024. To provide continuity in taxation, I propose to extend the date to 31.03.2025," she added.

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FM proposes withdrawal of Direct Tax Demand

The finance minister proposed to withdraw outstanding direct tax demands of more than Rs 25,000 till FY09/10 and up to Rs 10,000 for FY10/11 to 14/15.

"There are a large number of petty, non-verified, non-reconciled or disputed direct tax demands, many of them dating as far back as 1962, which continue to remain on the books, causing anxiety to honest taxpayers and hindering refunds of subsequent years. I propose to withdraw such outstanding direct tax demands up ₹ 25,000 pertaining to the period up to financial year 2009-10, and up to ₹ 10,000 for financial years 2010-11 to 2014-15. This is expected to benefit about a crore taxpayers," said Sitharaman.

"In 2014 (the first Narendra Modi government) the need of the hour was to give hope to people (and) attract investment. (Now) the economy is put firmly on the high-growth path," she added.

Watch:India Budget 2024 | Nirmala Sitharaman on poor: 'Garib ka kalyan, desh ka kalyan'

Sitharaman, while presenting her sixth straight budget, said the government - which will go into polls in less than three months - has been working to make the country 'Viksit Bharat' (Developed India) by 2047, and that the development will be "all round, all inclusive, and all pervasive".

The finance minister said that the government will successfully deliver its promise of high (and inclusive) growth, and its focus will remain on "a more comprehensive GDP - i.e., Governance, Development, and Performance".

(With inputs from agencies)