New Delhi – In an Interim Budget 2024-25, Union Finance Minister Nirmala Sitharaman unveiled a remarkable achievement in India’s fiscal landscape. Over the last ten years, direct tax collections have witnessed an extraordinary threefold increase, accompanied by a surge of 2.4 times in the number of return filers.
Expressing gratitude to the taxpayers for their invaluable contributions, Sitharaman assured the nation that these funds have been utilized judiciously for the development of the country and the welfare of its people. The Finance Minister’s acknowledgment of taxpayer support signals a collaborative effort between the government and its citizens in achieving this fiscal milestone.
Highlighting transformative changes in the tax regime, Sitharaman emphasized the reduction and rationalization of tax rates. In a significant move, taxpayers with an income up to ₹7 lakh now face no tax liability, marking a substantial increase from ₹2.2 lakh in the financial year 2013-14. The presumptive taxation thresholds for retail businesses and professionals were also raised, providing relief and fostering economic growth.
The corporate sector witnessed a notable shift as well, with the corporate tax rate reduced to 22 per cent for existing domestic companies. Certain new manufacturing companies enjoy an even lower rate, set at 15 per cent. These measures aim to stimulate business growth and attract new investments.
Sitharaman underscored the government’s commitment to enhancing taxpayer services over the past five years. The introduction of Faceless Assessment and Appeal transformed the age-old jurisdiction-based assessment system, bringing in greater efficiency, transparency, and accountability.
Furthermore, the Finance Minister highlighted the success of recent initiatives aimed at simplifying the tax filing process. The introduction of updated income tax returns, a new Form 26AS, and pre-filling of tax returns have streamlined the procedure, leading to a significant reduction in the average processing time of returns. From 93 days in the year 2013-14, the processing time now stands at a mere ten days, ensuring faster refunds for taxpayers.
