Introduction: In a significant revelation during the presentation of the Interim Budget 2024-25, Union Finance Minister Smt. Nirmala Sitharaman disclosed that direct tax collections have more than tripled in the past decade. Furthermore, the number of return filers has swelled by 2.4 times, showcasing a robust financial landscape. This article delves into the key highlights of the budget, emphasizing tax reforms, improved services, and the remarkable efficiency in processing returns.
Detailed Analysis:
1. Tax Reforms and Reductions: Underlining the government’s commitment to taxpayer-friendly policies, Smt. Sitharaman highlighted significant changes in the tax structure. The new tax regime witnessed a reduction in tax rates, providing relief for individuals with income up to ₹7 lakh, up from ₹2.2 lakh in the financial year 2013-14. Notably, the corporate tax rate was reduced to 22% for existing domestic companies and 15% for certain new manufacturing entities.
2. Presumptive Taxation Thresholds: The threshold for presumptive taxation in retail businesses saw an increase from ₹2 crore to ₹3 crore, demonstrating a supportive approach towards small businesses. Additionally, the threshold for professionals eligible for presumptive taxation rose from ₹50 lakh to ₹75 lakh, further promoting ease of doing business.
3. Focus on Taxpayer Services: Over the last five years, the government has prioritized enhancing taxpayer services. The introduction of Faceless Assessment and Appeal marked a transformation in the age-old jurisdiction-based assessment system, ensuring greater efficiency, transparency, and accountability.
4.Simplified Tax Return Processes: Smt. Sitharaman emphasized the simplification of tax return processes. The introduction of updated income tax returns, a new Form 26AS, and pre-filling of tax returns has significantly reduced the average processing time of returns. From 93 days in 2013-14, the processing time has now been reduced to just ten days, leading to faster refunds.
Conclusion: The Interim Budget 2024-25 reflects a positive trajectory in India’s financial landscape, with the Finance Minister highlighting substantial achievements in direct tax collections and the number of return filers. The emphasis on tax reforms, reductions, and improved taxpayer services underscores the government’s commitment to fostering economic growth and simplifying the taxation system for the benefit of the citizens.
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Ministry of Finance
DIRECT TAX COLLECTIONS MORE THAN TREBLED AND RETURN FILERS SWELLED TO 2.4 TIMES IN PAST DECADE: UNION FINANCE MINISTER
AVERAGE PROCESSING TIME OF RETURNS COMES DOWN FROM 93 DAYS IN 2013-14 TO JUST TEN DAYS NOW
Posted On: 01 FEB 2024 12:43PM by PIB Delhi
“Over the last ten years, the direct tax collections have more than trebled and the return filers swelled to 2.4 times”, the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman said, while presenting the Interim Budget 2024-25 in the Parliament today. The Minister assured taxpayers that their contributions have been used wisely for the development of the country and welfare of its people. She appreciated the tax payers for their support.
Smt. Sitharaman further added that under the new tax regime, the tax rates have been reduced and rationalised. There is now no tax liability for tax payers with income up to ₹ 7 lakh, up from ₹ 2.2 lakh in the financial year 2013-14. The threshold for presumptive taxation for retail businesses was increased from ₹ 2 crore to ₹ 3 crore. Similarly, the threshold for professionals eligible for presumptive taxation was increased from ₹ 50 lakh to ₹ 75 lakh. Also, corporate tax rate was decreased from 30 per cent to 22 per cent for existing domestic companies and to 15 per cent for certain new manufacturing companies.
The Union Minister highlighted that in the last five years, the government’s focus had been to improve 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”, she said.
Smt. Sitharaman also asserted that the introduction of updated income tax returns, a new Form 26AS and pre-filling of tax returns have made filing of tax returns simpler and easier, reducing average processing time of returns from 93 days in the year 2013-14 to a mere ten days this year, thereby making refunds faster.
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