On February 1st, 2024, at 11 am in Parliament, Nirmala Sitharaman, the Union Finance Minister, presented the Interim Budget for 2024-25. This is the consecutive 6th budget presentation in a row. The central minister tabled the Finance Bill 2024 with necessary changes to the laws.
The Finance Bill, serves as a legislative tool for the government to propose new taxes, adjust prevailing tax frameworks, or extend the existing tax structure beyond the initial approval granted by Parliament. Approval from Parliament is sought on an annual basis, and upon sanction, the Finance Bill transitions into the enacted legislation known as the Finance Act.
The Government has reduced and rationalised tax rates. Under the new tax scheme, there is now no tax liability for taxpayers with income up to ₹ 7 lakh, up from ₹ 2.2 lakh in the financial year 2013-14.
The threshold for presumptive taxation for retail businesses was increased from ₹ 2 crore to ₹ 3 crore. Similarly, the threshold for professionals eligible for presumptive taxation was increased from ₹ 50 lakh to ₹ 75 Lakh. Also, the corporate tax rate was decreased from 30 per cent to 22 per cent for existing domestic companies and to 15 per cent for certain new manufacturing companies.
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