The Center will not pursue taxpayers to recover old and disputed direct taxes of up to Rs 25,000 crore till the financial year 2009-2010, Finance Minister Nirmala Sitharaman said in her interim Budget 2024 speech today.
Direct taxes requiring up to Rs 10,000 will also be withdrawn from the financial years 2010-11 to 2014-15, he said.
“This will benefit approximately one million taxpayers,” Ms Sitharaman said.
“…There are a large number of small, unverified, unreconciled or disputed direct tax claims, many dating back to 1962, that remain on the books, causing anxiety for honest taxpayers and hampering refunds in subsequent years “I propose to withdraw such outstanding direct tax demands up to Rs 25,000 for the period up to financial year 2009-10, and up to Rs 10,000 for the financial years 2010-11 to 2014-15. This is expected to benefit millions of taxpayers,” he said Mrs. Sitharaman.
He made no changes to the tax slabs in the interim budget in line with the convention.
“As for the tax proposals, in accordance with the convention, I do not propose to make any changes related to taxes and I propose to maintain the same tax rates for direct and indirect taxes, including import duties,” he said.
“However, certain tax benefits for startups and investments made by sovereign or pension funds, as well as exemption from taxes on certain income of some IFSC units, will expire on 31.03.2024. To ensure continuity in taxation , I propose to extend the date to 31.03.2025,” said Ms. Sitharaman.
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