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Budget 2024 - Changes in Income Tax & ITR

An overview by India Refunds - Read further to know if the tax regime remains unchanged..

As the Budget 2024 unfolds, taxpayers eagerly await any changes in income tax rates for the fiscal year 2024-25. However, in line with expectations, the Budget 2024 - Changes in Income Tax & ITR reveal there have been no alterations in the existing tax rates. Preeti Sharma, Partner at BDO India LLP, suggests that clarity on tax rates will likely emerge with the full-year budget announcement in July.

Standard Deduction - Unchanged

For the financial year 2024-2025, the standard deduction remains consistent at Rs 50,000. This applies to both the old tax regime and new income tax regimes, offering taxpayers a familiar benefit.

Income Tax Regimes - Overview

The new income tax regime, introduced in the previous year's Budget - 2023, stands as the default option for taxpayers. However, individuals can still opt for the old tax regime, provided they make a conscious decision at the time of filing their income tax returns. The new regime presents lower tax rates up to an income threshold of Rs 15 lakh but limits several major tax exemptions and deductions available in the old regime.

Potential Changes and Amendments

Based on the highlights of Budget 2024 - Changes in Income Tax & ITR, tax experts speculate that the new income tax regime may eventually include the Rs 50,000 exemption for National Pension System (NPS) investments, aligning with the government's promotion of the NPS as a retirement scheme.

As most aspects remained unchanged, take a look at this previously curated checklist by India Refunds for tax filing refund and tax e-verification.

Tax Amnesty Announcement

Although no adjustments were made to the income tax slabs for 2024-25 according to the Budget 2024 - Changes in Income Tax & ITR, Finance Minister Nirmala Sitharaman introduced a small tax relief measure for taxpayers. An income tax amnesty was declared for individuals with outstanding direct tax demand disputes with the income tax department. Taxpayers meeting specified criteria for outstanding demands up to certain financial years will have their demands withdrawn; India Refunds believes that this provides them with much-needed relief.

While the income tax rates remain unchanged for the fiscal year 2024-25, taxpayers can expect further clarity and potentially beneficial amendments as the full-year budget announcement approaches in July 2024. Stay tuned for updates and ensure compliance with the applicable tax regimes to maximize benefits and minimize liabilities.

Reach out to India Refunds, India’s first and only advisory firm dealing with issues related to tax refunds of Income Tax and GST, for all your refund requirements and other information.


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