NEW DELHI: Union Finance Minister Nirmala Sitharaman declared on Thursday that there would be no alterations to income tax slabs in the 2024 interim Budget.
While maintaining reduced and rationalised tax rates for direct and indirect taxes, including import duties, Sitharaman reassured the nation of fiscal stability.
Sitharaman proposed the withdrawal of outstanding direct tax demands, a move expected to benefit approximately one crore taxpayers.
Specifically, demands up to Rs 25,000 till FY09/10 and up to Rs 10,000 for FY10/11 to 14/15 will be withdrawn, providing relief and easing the burden on honest taxpayers.
Addressing the lingering issue of unresolved direct tax demands, some dating back to 1962, Sitharaman stated, “There are a large number of petty, non-verified, non-reconciled, or disputed, direct tax demands… causing anxiety to honest taxpayers. I propose to withdraw such outstanding direct tax demands.”
Given the interim nature of this budget, which is designed to sustain the government until a new administration takes charge post the Lok Sabha polls, the decision to maintain the existing tax slabs was anticipated.
A more comprehensive Union Budget is expected to be presented by the new government in July.
Despite the expected interim measures, the news of unchanged tax slabs may disappoint the middle class, particularly those hoping for cuts to address perennial cost-of-living concerns.
In her presentation, Sitharaman outlined the government’s vision to make India a “Viksit (Developed) Bharat” by 2047, emphasising all-round, inclusive, and pervasive development.
The Finance Minister announced plans to form a “high-powered committee” to address challenges arising from population growth and demographic shifts as well.
Acknowledging global challenges, including fragile geopolitical situations and the spectre of terrorism, Sitharaman expressed the government’s confidence in delivering high and inclusive growth.
She outlined a focus on a more comprehensive “GDP” – Governance, Development, and Performance.
Earlier in the day, in a traditional pre-Budget ritual, Sitharaman, accompanied by MoS Bhagwat Karad and Pankaj Chaudhary, visited President Droupadi Murmu’s residence.
The Finance Minister, carrying her distinctive red pouch, marked her sixth Budget, concluding her tenure in the second term of the current government.
