One crore taxpayers got huge relief in the budget, relief from outstanding tax demand

About 1 crore taxpayers across the country got a big relief on Thursday. Presenting the Interim Budget, Finance Minister Nirmala Sitharaman announced relief for income tax payers and waived the demand for tax arrears.

No change in tax slab or rate.

Presenting his sixth consecutive budget today, Thursday, February 1, he said that this time there is no change in the tax slab or tax rate. In the budget speech, he clearly said that there is no change in the tax slab or rates of direct tax, indirect tax or import duty.

Effective Income Tax Rates.

This means that the old system from personal income tax to corporate income tax will continue. Under the new tax regime, individuals with annual income up to Rs 7 lakh will not have to pay any income tax. The corporate income tax rate for existing domestic companies will be 22 percent, while the liability for selected new manufacturing companies will be 15 percent.

Benefit to one crore taxpayers

However, he provided relief to taxpayers who were facing tax arrears. The Finance Minister said that the tax arrears of up to Rs 25,000 for the financial year 2009-10 will be cleared. Similarly, relief from income tax liabilities of Rs.10,000 has also been given for the financial years 2010-11 to 2014-15. The finance minister claimed that one crore taxpayers are going to benefit from this relief.

This exemption was extended for one year.

The Finance Minister also announced the start-ups, gift city units and pension funds in the budget. Some tax benefits are already being given to startups and investments made by sovereign wealth funds or pension funds. At the same time, some units located in IFSC were getting tax exemption. The exemption and these benefits were to expire on March 31, 2024. They have been extended by one year i.e. till 31 March 2025.

Tax collection more than doubled

Regarding tax revenue, the finance minister said that direct tax collection has more than doubled in the last 10 years. During 2013-14, the average time taken to submit returns was 93 days, which has now been reduced to 10 days. The monthly GST collection has increased to Rs 1.66 lakh crore in 2023-24.

Also Read: Tax Revenue More Than Doubled, Govt To Spend Openly, Investment Increases Over 11 Percent

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