The Interim Budget 2024 was announced by the Hon'ble Finance Minister Smt. Nirmala Sitharaman on 1 February 2024 and in line with the parliamentary practice, no structural changes have been made in the tax regime. The Finance Minister mentioned that in the full budget to be held post elections, the government would present a detailed roadmap for the pursuit of ‘Viksit Bharat’.
Certain key aspects of the Interim Budget 2024 are as under:
1. Direct Tax
- No changes in personal and corporate income-tax rates
- Extension of sunset provision in respect of specified Start-ups under section 80-IAC and certain IFSC units from 31 March 2024 to 31 March 2025
- Section 115BAB (concessional tax regime for new manufacturing companies) - No extension to sunset date of 31 March 2024 for commencement of manufacturing activity
- Legislation of changes in the TCS provisions under section 206C(1G)
- Proposed waiver of old unreconciled outstanding income-tax demands
2. Indirect Tax
- Proposed amendment to the definition of Input Service Distributor (ISD) seeking to implement the below changes:
- Mandate the ISD registration prospectively and
- Including reverse charge transactions under the scope of ISD mechanism
- Proposed substitution of section 20 to amend the manner of distribution of ISD credits
In this regard, we are pleased to share our presentation viz. 'India Interim Budget 2024 – Key Aspects in a Nutshell' highlighting certain key aspects of the Interim Union Budget 2024 announced on 1st February 2024.