Key Highlights of Union Budget 2024: A Comprehensive Overview

In the recently presented Union Budget for the fiscal year 2024, several key developments were announced, reflecting the government's commitment to fiscal responsibility, taxpayer support, and economic growth. Here are the prominent highlights across direct taxes, indirect taxes, and tax proposals:

Direct and Indirect Taxes

The Union Budget 2024, aimed towards reducing and rationalizing tax rates. The following suggestions have been provided to strengthen direct and indirect taxation in India,

• Direct tax rates to remain unchanged in FY 2024-25.

• No tax liability for individuals with income up to Rs.7 lakh in the new tax regime.

• Corporate tax rates: 22% for existing domestic companies, 15% for certain new manufacturing companies.

• Direct tax collections tripled over the last decade; return filers increased by 2.4 times.

• Average processing time for tax returns reduced from 93 days in 2013-14 to 10 days in 2023-24.

• Extension of time limit for tax benefits for startups and investments by sovereign wealth funds/pension funds.

• Tax exemption for specific IFSC units is extended until March 31, 2025.

• Average monthly gross GST collection doubled to Rs.1.66 lakh crore in FY24.

• Tax buoyancy of state revenue increased from 0.72 (2012-16) to 1.22 (2017-23) post-GST.

• Customs rates, including import duties, to be retained in FY 2024-25.

In conclusion, the Union Budget 2024 reflects a balanced approach towards promoting economic growth, ensuring taxpayer support, and simplifying tax procedures. The strategic measures announced are poised to contribute to India's development and the well-being of its citizens.