February 1, 2024: As part of the presentation of the Interim Budget 2024-25, union finance minister Nirmala Sitharaman today announced measures to alleviate outstanding disputed tax demands for specific periods. This initiative is expected to benefit around 1 crore taxpayers by resolving disputes dating back decades.
“In line with our government’s vision to improve ease of living and ease of doing business, I propose to withdraw outstanding direct tax demands up to Rs 25,000 for the period up to the financial year 2009-10 and up to Rs 10,000 for the period from FY11 to FY15,” stated the FM.
The proposal aims to address long-standing tax disputes, including many petty, non-reconciled, non-verified or disputed direct tax demands, some dating back to 1962. These unresolved demands have caused anxiety among honest taxpayers and have impeded refunds for subsequent years, she highlighted in the budget speech.
Despite this announcement, there were no changes in the income tax slab. However, the FM proposed an extension of the date for certain tax benefits related to start-ups and investments made by sovereign wealth or pension funds until March 31 next year. The tax exemption will also apply to IFSC units, effective until the specified date.
Vikas Kumar Mittal, managing director, Nova Formworks, said, “We commend the government for its determination to ensure economic growth and the steered path the country has been placed on. The proposed intention to streamline tax processes and preserve ongoing stability in tax rates is a welcome move toward the manufacturing sector. Prolongation of tax exemption for startups and IFSC units until March 31, 2025, will ensure continuity and promote innovativeness.”
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected] |
Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
Email: [email protected]
Related Posts
FM announces India’s new Net Zero Targets in Interim Budget 2024-25.
Over 2 crore houses to be constructed under PMAY-G in next 5 years.
Direct tax collections more than trebled in past 10 years, says FM.
Interim Budget 2024-25 provides more boost to Nari Shakti.
What do builders expect from Union Budget 2024?.
Interim Budget: Govt to launch new housing scheme for middle class.
