Budget 2024: 3 key personal finance changes from withdrawal of petty tax demands to extension of deadline

In case you happened to miss the much-awaited interim Budget 2024 speech delivered by Nirmala Sitharaman, we compile a list of personal finance changes that are set to come into effect post-Budget.

There are three key changes that are arguably significant: withdrawal of direct tax demand for amount up to ₹25,000, extension of deadline for some of the tax benefits by one year ending March 31, 2025 and last but not the least – no change in the tax rates in line with the prevailing convention for interim Budgets that are announced in run up to General Elections.  

Key personal finance changes to come into effect

I. Withdraw direct tax demand: Nirmala Sitharaman proposed to withdraw outstanding direct tax demands dating to years and decades ago. 

There are some old disputed tax demands — some of them dating back to 1962 — causing anxiety to the honest  tax payers.

“There are a large number of petty, non-verified, non-reconciled or disputed direct tax demands, many of them dating as far back as the year 1962, which continue to remain on the books, causing anxiety to honest tax payers and hindering refunds of subsequent years. I propose to withdraw such outstanding direct tax demands up to ₹25,000 pertaining to the period up to financial year 2009-10 and up to ₹10,000 for financial years 2010-11 to 2014-15,” said Sitharaman in the Budget speech. 

This is expected to benefit one crore tax-payers, she added.

2. No new tax rates announced: The finance minister did not introduce any change in the tax rates for direct or indirect tax rates.

“In keeping with the convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties,” the FM said.

“Tax benefits to start-ups and investments made by sovereign wealth or pension funds, and also tax exemptions on certain income of some IFSC units are expiring on March 31, 2024, to provide continuity in taxation, I propose to extend the date to 31, March 2025," she added.

Also Read: Income Tax Budget 2024 Live Updates

3. Tax benefits extended: The last date for tax benefits to start-ups and wealth & pension funds and certain income of some IFSC units was extended by another year.

“Tax benefits to start-ups and investments made by sovereign wealth or pension funds, and also tax exemptions on certain income of some IFSC units are expiring on March 31, 2024, to provide continuity in taxation, I propose to extend the date to 31 March 2025,” she said.