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Budget 2024: Amendments Proposed Under Direct Tax


Last Updated on February 2, 2024 by G.Durghasree B.A.B.L (Hons)

The Amendments Proposed Under The Union Budget Plan 2024-2025 Related To Income Tax Are As Per The Following:

On February 1, 2024, at 11 am in Parliament, Nirmala Sitharaman, the Union Finance Minister, introduced the Break Financial plan for 2024-25.

This is the sixth consecutive 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. Parliament seeks approval on an annual basis, and upon sanction, the Finance Bill transitions into the enacted legislation known as the Finance Act.

Tax rates have recently been lowered and rationalized by the Government. Taxpayers who earn less than Rs. 7 lakhs are exempt from tax under the new system. This limit has been expanded from ₹ 2.2 lakh in the monetary year 2013-14. The edge for possible tax assessment for retail organizations has expanded from ₹ 2 crore to ₹ 3 crore. Furthermore, the limit for experts qualified for possible tax assessment has been raised from ₹ 50 lakh to ₹ 75 lakh. Also, the corporate duty rate has been diminished from 30% to 22% for existing homegrown organizations and to 15% for specific new assembling organizations.

New Regime Tax Slabs

Up to 3,00,000 Nil
From 3,00,001 to 6,00,000 5
From 6,00,001 to 9,00,000 10
From 9,00,001 to 12,00,000 15
From 12,00,001 to 15,00,000 20
Above 15,00,000 30

Old Regime Tax Slabs

Up to 2,50,000 Nil
From 2,50,001 to 5,00,000 5
From 5,00,001 to 10,00,000 20
Above 10,00,000 30

Common IT Return Form

For the assessment year (AY) 2024–2025, the Income Tax Department has issued ITR forms 1 and 4, which individuals and businesses can file with annual total incomes of up to 50 lakhs.

When Are ITR Forms Notified?

The department typically notifies the ITR structure before the beginning of the resulting appraisal year, for example, in February or March. Taxpayers will have more time to spend extended periods with the changes, gather the necessary documentation, and file their returns with greater precision due to the unexpectedly early release, which deviates from the established timeline.

ITR Form 1

ITR Form 1 (Sahaj) caters to many small and medium taxpayers.

Sahaj can be recorded by an inhabitant with a pay of up to ₹50 lakh who gets pay from pay, one-house property, different sources (interest), and horticultural pay of up to ₹5,000.

ITR Form 4

ITR Form 4 (Sugam) is a more straightforward form that caters to many small and medium taxpayers. Sugam can be filed by residents, HUFs, and businesses (other than Limited Liability Partnerships (LLPs)) with a total income of up to 50 lakh rupees and earnings from business and profession.

Income Tax Return Filing 2024: Three Key Changes to Note in ITR Form 1 And Form 4

For the assessment year (AY) 2024–2025, the Income Tax Department has issued ITR forms 1 and 4, which individuals and businesses can file with annual total incomes of up to 50 lakhs.

“Changes presented in new ITR structures 1 and 4 told for Evaluation Year 2024-25. Astounding citizens with a surprising and welcome motion, the CBDT filled the role of an early Santa Claus this year by uncovering the Income Tax Return (ITR) Forms 1 and 4 for the Assessment Year 2024-25. These ITR Forms will be pertinent for documenting annual expense forms for money procured during the earlier year 2023-24 (between 01-04-2023 to 31-03-2024),” said Naveen Wadhwa, VP Research, Taxman.

Fundamental Changes in the New ITR Form 1, Form 4

  • An assessed filing ITR 1 is only required to indicate his choice of tax regime in the return of income. An assessed filing ITR 4 will be required to file Form 10-IEA to opt out of the new tax regime.
  • A new column has been added to claim deduction under section 80CCH in new ITR Forms 1 and 4

The Finance Act 2023 added a new Section80CCH, which expresses that people signed up for the Agni Path Scheme and subscribing to the Agni veer Corpus Fund or after 01-11-2022 will be qualified for an expense derivation for the total amount kept in the Agni veer Corpus Fund.

  • The “Receipts in Cash” column has been added to ITR-4 to claim an enhanced turnover limit.

The Finance Act, 2023 has enhanced the turnover threshold limit from ₹2 crore to ₹3 crore for opting for the presumptive taxation scheme under Section 44AD if the receipts in cash do not exceed 5% of the total turnover or gross receipts for the previous year.

G.Durghasree B.A.B.L (Hons)

G Durghasree B.A.B.L (Hons) is a registered trademark attorney with extensive experience as an Advocate for a period of 8 years. She possesses expertise in trademark law, including trademark filing and trademark hearings. Additionally, she is skilled in contract drafting and reviewing, providing legal advice and opinions, particularly in the areas of Company Law, Insolvency and Bankruptcy Code (IBC), and Goods and Service Tax Law (GST). Her experience encompasses both litigation and non-litigation aspects of these laws.