Personal Taxation Announcements in Interim Budget 2024-25
| Announcement | Details |
|---|---|
| No Changes in Personal Tax Rates | Finance Minister Nirmala Sitharaman adheres to past parliamentary practice, maintaining existing tax rates. Under the new regime, individuals earning up to Rs 7 lakh have no tax liability. Health and education cess at 4% is applicable. |
| Rebate on Total Income | A rebate of Rs 12,500 is available for total income up to Rs 5,00,000 in the old tax regime and Rs 25,000 for total income up to Rs 7,00,000 in the new tax regime. Marginal tax relief is granted for income exceeding Rs 7,00,000 in the new regime. Surcharge on capital gains and dividend taxation remains unchanged at 15%. |
| Waiver of Old Trivial Tax Demands | The proposal includes waiving old unreconciled trivial tax demands, easing administrative burdens. Outstanding direct tax demands up to Rs. 25,000 for the period up to financial year 2009-10 and up to Rs. 10,000 for financial years 2010-11 to 2014-15 will be withdrawn, benefiting approximately 1 crore taxpayers. |
| No Changes in Basic Exemption Limit | The Basic Exemption Limit (BEL) remains at Rs 2,50,000 for the old tax regime and Rs 3,00,000 for the new regime, unchanged since Budget 2014. Despite expectations for an increase, no changes were made. |
| Due Date Extension for Filing Belated Tax Return | The due date for filing belated returns is extended to the end of the assessment year. While the existing deadline is December 31, there are calls for an extension until March 31 with a higher fee of Rs 10,000 to accommodate personal exigencies and data collation delays. |
In summary, while the interim budget focuses on maintaining stability in taxation, there are expectations for potential revisions in the final budget to address concerns such as basic exemption limit adjustments and filing deadlines.