union Finance Minister Nirmala Sitharaman clarified that the Interim Budget 2024-25 did not include revisions to income tax rates, aligning with several other sectors. In an exclusive interview with India Today TV, Sitharaman stated that the interim budget was not the appropriate time to decide on tax rates.
During her extensive budget speech on February 1, Sitharaman announced the continuation of existing tax rates for direct and indirect taxes, including import duties. She also maintained the status quo on the capital gains structure, refraining from introducing any alterations.
Sitharaman did, however, propose that the government would not pursue the recovery of old and disputed direct taxes up to Rs 25,000 until the financial year 2009-10. Additionally, direct tax demands up to Rs 10,000 for the financial years 2010-11 to 2014-15 would be withdrawn.
In line with the government’s vision to enhance ease of living and ease of doing business, Sitharaman emphasized the withdrawal of outstanding direct tax demands, addressing concerns dating back to 1962. This move aims to relieve honest taxpayers of anxiety and facilitate refunds for subsequent years, benefiting approximately one crore taxpayers.
Sitharaman dispelled the misconception that household savings have decreased in recent years, highlighting the significance of post office small savings schemes for the middle class. She also noted a shift in investment trends since 2020, as people explore alternative forms of investments due to increased transparency and confidence in the system.
