Union Finance Minister Nirmala Sitharaman unveiled the Union Budget 2024–25, emphasizing its commitment to Viksit Bharat and focusing on nine key priorities. Highlighting the government’s ongoing efforts to streamline taxation, the Finance Minister discussed various measures aimed at simplifying the tax structure, enhancing taxpayer services, and reducing litigation.
Sitharaman announced a comprehensive review of the Income-tax Act, 1961, within six months to make it more concise and clear. She proposed that reassessments can now be reopened beyond three years only if the escaped income exceeds Rs 50 lakh, with a maximum period of five years. In search cases, the reassessment period is reduced to six years from the previous ten-year limit. Further, two tax exemption regimes for charities will be unified, and certain TDS rates will be adjusted.
The Finance Minister emphasized the digitalization of GST, Customs, and Income Tax services, aiming to make them paperless within two years. Additionally, the ‘Vivad se Vishwas Scheme 2024’ will address pending income tax disputes.
Sitharaman also proposed increasing monetary limits for tax-related appeals in various courts. To broaden the tax base, the Securities Transaction Tax on futures and options will be increased, and income from share buybacks will be taxed. These measures are expected to balance Rs 30,000 crore in new revenue against roughly Rs 37,000 crore forgone.
