Introduction
Union Budget 2024: Shaping India’s Future
The Union Budget 2024 is like a guidebook for our country’s money matters. It’s a plan to help our economy grow and face challenges smartly. This budget is designed to make sure everyone, from different sectors and communities, gets a fair shot at progress and success. Let’s explore how this budget aims to steer India towards a better, more prosperous future by managing our money wisely and thinking ahead.
Amendments in Direct Tax
1. Tax Slabs Unchanged in Both Old and New Regime
No alterations in tax slab rates for the old and new tax regimes. The New Tax Regime will be the default Tax Regime. However, the old Tax Regime can also be availed by filing Form 10IE.
2. Waiver of Small, Unresolved Tax Demands
- The finance minister has proposed the withdrawal or waiver of small, unresolved, unverified, or disputed direct tax demands for financial years up to 2014-15.
- This initiative addresses concerns related to demands:
- Up to Rs. 25,000 for the period up to the financial year 2009-10
- Rs. 10,000 for financial years 2010-11 to 2014-15
- Covers income-tax, wealth tax, gift tax, estate duty, and banking cash transaction tax for approximately 1 crore taxpayers.
3. Reduction in TCS Rates
TCS rate reduced from 20% to 5% under Section 206 C(1G).
| Sr. No. | Amount of Remittance | TCS Rate |
| 1 | Upto Rs. 7 Lakhs | Nil |
| 2 | Above Rs. 7 Lakhs | For education or medical purposes: 5% For other purposes: 20% |
4. Extension of Section 80 IAC Exemption
Section 80 IAC exemption for eligible startups extended until 31st March 2025.
5. Extension of Faceless Regime Implementation
CBDT was supposed to issue directions for the faceless regime by 31-3-2024, now extended to 31-3-2025.
| Section | Particulars |
| 93 CA | Faceless determination of arm’s length price |
| 144C | Faceless Dispute Resolution Panel |
| 253 | Faceless appeal to Appellate Tribunal |
| 255 | Faceless procedure of Appellate Tribunal |
6. Deduction under Section 80LA for Banks and IFSC Units
- Schedule Banks, foreign Banks, or units of IFSC eligible for a deduction under Section 80LA.
- Banks: 100% income deductible for 10 consecutive assessment years.
- IFSC units: 100% income deductible for 10 consecutive assessment years out of 15 years.
- The deduction is allowed for the income arising from the transfer of an asset, being an aircraft or a ship, which was leased by a unit of the IFSC from its business for which it has been approved for setting up at such a center in an SEZ.
- Proposed extension of the date to commence operations from 31-03-2024 to 31-03-2025.
7. Extension of Exemption for Non-Resident Income
- Any income of a non-resident by way of royalty or interest on account of leasing of an aircraft or a ship in a previous year to a unit of an International Financial Services Centre as referred to in Section 80LA(1A) shall be exempt from tax provided such unit has commenced its operations on or before 31-03-2024.
- Proposed extension of the date of commencement of operations from 31-03-2024 to 31-03-2025 under Section 10 (4F).
8. Tax Exemption for Wholly Owned Subsidiaries
- Income in the nature of dividend, interest, or long-term capital gains of wholly owned subsidiaries of the Abu Dhabi Investment Authority, sovereign wealth fund, or pension fund shall be exempt from tax.
- The exemption is allowed on fulfilment of certain conditions. The exemption under this provision shall be available if the investment is made between 01-04-2020 and 31-03-2024 in the specified entities.
- Investment deadline extended from 31-03-2024 to 31-03-2025 under Section 10 (23FE).
9. Extension of Sunset Date for Income-tax Act Several Provisions
Proposed extension of sunset date for several provisions under the Income-tax Act from 2024 to 2025.
Amendments in Indirect Tax
1. ISD Registration Requirement for Taxpayers with Multiple Offices
If any office of a taxpayer that is registered under the GST receives invoices for common services (including invoices on which RCM is applicable) for and on behalf of other registered offices of the same person (i.e., Distinct Persons), then such registered office shall be:
- mandatorily required to obtain ISD registration; and
- required to distribute the ITC in respect of such common services.
Effective upon passing of the Finance Bill 2024.
Other Announcements
1. Housing for Middle Class Scheme
Government launching the “Housing for Middle Class” scheme to encourage middle-class individuals to purchase or construct their own homes.
2. Pradhan Mantri Awas Yojana (Grameen)
Nearing the target of 3 crore houses, with an additional goal of 2 crore houses set for the next five years.
3. Nutrition Enhancement Programs
Acceleration of Saksham Anganwadi and Poshan 2.0 programs to enhance nutrition delivery, early childhood care, and development.
4. Health Initiatives
- Promotion of cervical cancer vaccination for girls aged 9-14.
- Extending health coverage under the Ayushman Bharat scheme to include all ASHA, Anganwadi workers, and helpers.
5. Infrastructure Development under PM Gati Shakti
- Implementation of three major railway corridor programs under PM Gati Shakti to enhance logistics efficiency and reduce costs.
- Conversion of forty thousand normal rail bogies to the Vande Bharat standard.
6. PM Mudra Yojana
- PM Mudra Yojana has sanctioned 43 crore loans aggregating to Rs. 22.5 lakh crore for entrepreneurial aspirations of youth.
- Fund of Funds, Start Up India, and Start Up Credit Guarantee schemes assisting youth in becoming ‘rozgardata.’
7. Rooftop Solarization
Enabling 1 crore households for rooftop solarization, providing up to 300 units of free electricity per month.
8. Airport Development under UDAN Scheme Expanding existing airports and undertaking comprehensive development of new airports under the UDAN scheme.
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