Union Budget 2024: Key Updates for Taxpayers

1. Simplification for Charities and TDS

The Union Budget 2024 proposes merging the two tax exemption regimes for charities into one. Additionally, the 5% TDS rate on many payments will be merged into the 2% rate. The TDS rate on repurchase of units by mutual funds will be reduced, and the TDS rate on e-commerce operators will decrease from 1% to 0.1%. Credit of TCS will be given in the TDS to be deducted on salary. Delays in payment of TDS will be decriminalized up to the due date of filing the statement. A standard operating procedure for TDS defaults will be provided to simplify the process.

2. Simplification of Reassessment

The Budget aims to simplify the provisions for reopening and reassessment. An assessment can now be reopened beyond three years only if the escaped income is ₹50 lakh or more, up to a maximum of five years. Time limits for search cases have been reduced to six years. This will reduce tax uncertainty and disputes.

3. Simplification and Rationalisation of Capital Gains

The Budget proposes simplifying capital gains taxation. Short-term gains on certain financial assets will be taxed at 20%, while long-term gains on all assets will be taxed at 12.5%. The limit of exemption of capital gains on certain financial assets will be increased to ₹1.25 lakh per year. The classification of assets as long term will also be revised.

4. Tax Payer Services

Major taxpayer services under GST and Customs will be digitized. The remaining services of Customs and Income Tax will be digitalized over the next two years for a paper-less process.

5. Litigation and Appeals

Efforts to reduce pendency of appeals are underway, and more officers will be deployed to dispose of first appeals. The Vivad Se Vishwas Scheme, 2024 aims to resolve income tax disputes in appeal.

6. Employment and Investment

The Budget aims to support start-ups, boost cruise tourism, promote the diamond industry, and attract foreign capital through various tax reforms.

7. Deepening the Tax Base

Proposals for increasing Security Transactions Tax and taxing income from buy back of shares have been announced to deepen the tax base.

8. Other Proposals

The Budget also includes proposals related to the withdrawal of equalization levy, tax benefits for certain funds, and immunity from penalty and prosecution for benamidars.

9. Personal Income Tax

Changes in the personal income tax rates have been announced, offering relief to salaried employees and pensioners.

Budget Speech by Finance Minister

Stay updated with the latest Union Budget updates for 2024 and understand how they impact you as a taxpayer. #UnionBudget2024 #TaxReforms #BudgetSpeech