Highlights of GST and Tax Expectations in Interim Budget 2024
As we await the Interim Union Budget following the 2024 general elections, there’s a palpable anticipation for major announcements that could shape India’s economic trajectory. The forthcoming budget presents a crucial opportunity to address lingering issues and pave the way for sustained economic growth, prioritizing fiscal discipline over populist measures.
Looking back at the Former Budget 2023, hailed as the inaugural budget of the “Amrit Kaal,” it set the stage for India’s growth over the next 25 years. With a projected 7% rise in GDP for FY23, India stands among the fastest-growing economies globally. The budget highlighted key areas of focus, including infrastructure development, green growth, empowerment of youth, and strengthening the financial sector.
In the realm of personal income tax, the budget introduced significant reforms, offering relief under the new tax regime. Taxpayers welcomed the new income tax slabs, where no tax is levied on incomes up to Rs 7.5 lakh, along with reduced surcharge rates.
Looking forward to Budget 2024, there are key expectations in income tax reforms:
- Tax Deduction 80D Limit: Under Section 80D, there’s a call to increase the deduction limit for medical insurance premiums, reflecting the rising healthcare costs and ensuring fair access to healthcare for individuals and senior citizens alike.
- TDS Compliance for Home Consumers: Simplifying Tax Deducted at Source (TDS) compliance for property purchases over Rs 50 lakh, especially for Non-Resident Indian (NRI) sellers, is essential to streamline the process and ensure transparency.
- Bengaluru Metro City Status: Recognizing Bengaluru as a metro city for House Rent Allowance (HRA) exemption aligns with its status under the Indian Constitution, ensuring equitable treatment for its residents in income tax matters.
In terms of GST compliance, the focus of Budget 2024 is expected to be on easing customs laws and introducing reforms to streamline GST procedures. Key expectations include:
- Amended Annual GST Return Form: Introducing an amended annual GST return form will allow assesses to rectify errors, particularly in B2B transactions, thereby reducing unnecessary investigations and ensuring compliance.
- Reverse Charge GST for Non-Compliant Sellers: Implementing an upgraded reverse charge mechanism will facilitate effective GST compliance, relieving the burden on small businesses while ensuring timely remittance by big players.
In conclusion, the proposed reforms in Budget 2024 aim to simplify taxation processes, promote transparency, and foster economic growth. By addressing the concerns of taxpayers and businesses alike, the budget seeks to create a conducive environment for sustainable development and prosperity.
