UNION BUDGET 2024 - A BRIEF REVIEW OF SOME OF THE KEY DIRECT TAX PROPOSALS - PART I

The Union Budget 2024 marks the first Budget of Modi 3.0. The overall theme of the Union Budget 2024 has been the emphasis on employment, skilling, education, women empowerment, whilst also focusing on the middle class.

The Budget has laid down a roadmap for “Viksit Bharat” and has envisioned efforts across nine priorities which include inclusive human resource development and social justice, manufacturing and services, energy security, infrastructure, innovation and research and development, and next-generation reforms.

Unfortunately, as a few would reckon, some of the proposals in the Finance Bill, 2024 (“the Bill”) has been caught in various controversies. On a positive side, the Government initiative to abolish the system of angel taxation as envisaged under Section 56(2)(viib) with effect from 01 April 2024 is a welcome initiative.

In this article, I intend to delve on some of the key proposals in the Bill from a direct tax standpoint. One must bear in mind that these are proposals, which would become law once the Bill is passed by both the houses of Parliament and after obtaining the assent of the Hon’ble President.

A welcome change that has caught my attention is the plan of the Government in reviewing the provisions of the Income-tax Act, 1961 in order to make it lucid, concise and taxpayer friendly. The Government plans to overhaul the Income-tax Act, 1961 within a period of six months, which is welcome. I would hope that the changes are futuristic duly bearing in mind the doctrine of certainty in taxation. I would also hope that the new law would not evolve into a breeding ground of litigation akin to the laws governing Goods & Services Tax.

CHANGES IN THE SLAB RATES – PERSONAL TAX RELATED