Finance Minister of India, Nirmala Sitharaman, announces the Budget 2024, which follows the theme of “roadmap for our pursuit of ‘Viksit Bharat.’ Key revisions to tax slabs introduced in the budget will pave the way for the next course of ITR filing services in India and proposals for reducing compliance burdens from direct taxes.
The budget focuses on empowering primary areas of employment, skilling, and forming a company in India, especially MSMEs. Significant changes are expected in the rates of capital gains, securities transaction tax (STT), higher standard deductions, and the 5% reduction in corporate tax rates for overseas companies. iTax return filing through the e-tax portal is encouraged to sync with the digital economy goals.
In this blog, MPVD & Associates explains how the taxable income for FY 2024-25 is going to be impacted by the new budget. As one of the top 20 CA firms in Kolkata and a reputed NRI tax consultant, we must educate our clients, as well as taxpayers in general, about the rules, opportunities, and methods of being a responsible taxpayer in India.
Key Takeaways of Union Budget 2024 for ITR Filing Services in India
The general elections in April delayed this year’s budget announcement from February 1 to July 23, 2024. After the announcement of the bill, all kinds of TDS return filings filed before the date of July 31, 2024, will now fall under the financial year 2023-24. Therefore, the due date for tax filing for this fiscal year is July 31.
The prospects and priorities brought on by the Finance Bill for 2024 have been worth the wait. A big part of the bill is about making ITR filing services in India simpler and more forgiving for the taxpayer. The Income Tax Act of 1961 received a comprehensive review and simplification and was aligned with digital processes and other technological modernizations. The easier it becomes for taxpayers to comprehend the laws around accounting and taxation services, the more they adhere to them.
- New Tax Regime: There is an increase in the threshold limit for standard tax deductions from ₹ 50,000 to ₹ 75,000. Under the Budget 2024, taxable incomes under ₹ 7 lakh go tax-free thanks to the rebate under 87A, which can save you up to ₹ 25,000.
- Family Pension: Now families will get a higher deduction of ₹ 25,000, increasing from the previous amount of ₹ 15,000.
- Capital Gains: Big relief on foreign investments, including reducing the holding period of equity and overseas Fund of Funds (FoF) from 36 months to 24 months. Moreover, a reduction in long-term capital gains (LTCG) from 20% to 12.5% will further welcome domestic investors into the capital markets. NRIs can also claim certain tax directions. Our NRI Tax Consultation services are a valuable resource for getting more support regarding LTCG taxes.
- GST Relief on Section 73 GST Notice: The Finance Bill introduces a conditional scheme and the new Section 128A, which further makes GST return filing easier for income tax return service providers like us. This is to waive interest and penalties for GST payers if they receive a GST notice under Section 73 for specified non-fraudulent GST demands. Moreover, the scheme also enhances a streamlined timeframe for GST demand notice issuance, which is increased to 42 months from the earlier 33 months.
- Decriminalise Late TDS Payments: Proposals to allow TDS return filing delays till the due date of the statement filing for the respective quarter. By doing so, taxpayers can get a grace period of 85 days to deposit taxes without facing prosecution. However, such delayed payments will attract additional interest.
- MSME Empowerment: Several FDI rules are relaxed to make it easier for MSMEs to get term loans, and the Mudra loan limits are increased to ₹20 lakh. Moreover, angel taxes are also abolished now, so it can directly boost the funding prospects for SMBs, startups, and individuals forming a company in India.
- Improved iTax return filling: By improving and encouraging digitization of tax, the Indian government is aiming to improve the customs and procedures associated with ITR filing services in India, include more scope for error rectification, and enhance orderly operations.
The Budget and You— Income Tax Return Service and Recommendations by MPVD
The budget for 2024 doesn’t make any difference to the previous year’s budget. Taxpayers followed the old regime while paying their taxes this year, whose deadline was July 31, 2024. FY 2024-2025 will count from April 1, 2024. Now there might have been a bit of confusion regarding the TDS return filing dates, as the full budget is announced a bit later, with the interim budget announced in February. However, with expert advisory and personalised ITR filing services in India, we tend to make it less confusing and more convenient for taxpayers. Below are a few general recommendations to make the most of tax refunds.
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Salaried Employees
If you are a salaried employee who has crossed the threshold limit, you are welcome to talk to us at MPVD & Associates. As a leading CA firm in Kolkata, we can offer a host of resources for new taxpayers to plan and maintain a clear tax record.
For salaried individuals, we recommend they refer to the fully updated version of the Annual Information Statements (AIS) and Form 26AS before they file for TDS. The AIS includes information on various income sources and deductions. Reviewing it helps ensure that all the eligible exemptions are claimed, along with the opportunities and ITR filing services in India to reduce tax liability.
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iTax Return Filling
iTax return filing makes more sense than ever since the tax e-filing portal, opened in June 2021. It took the initiative to enhance the convenience, precision, and security of its income tax return service and resources. You can simply use your credit cards to pay. And have a clear record of things. No mistakes.
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Claim Sections 80C and 80D opportunities
We need to emphasise the tax deductions available under the 80C and 80D sections of the Income Tax Act of 1961. It remains unchanged in the budget for 2024, but it has several opportunities for reducing tax liability. You can connect with our CA firm in Kolkata, where our experts could guide you more on this. From medical insurance, interest paid on home loans, education loans, and a wide range of investments, including those by NRIs, there are many opportunities. All you need is a keen eye. However, for the tax refunds to process smoothly, you need to ensure timely iTax return filling and accurate bank account validation.
MPVD’s & Associates’ Personalised ITR Filing Services in India
The big draw of the Union Budget 2024 is the tax cuts and rationalisation opportunities for India’s lower-income businesses and individuals, as well as encouraging small startup ideas and forming a company in India.
The implementation of tax benefits and action plans follows quite an appropriate framework, looking ahead to the Viksin Bharat goals. Women’s empowerment, renewable energy, rural development, defence, and real estate development are the key values for developing the next-generation reforms.
As one of the top 20 CA firms in Kolkata, we offer a host of resources, and ITR filing services in India, including tax planning and financial solutions for businesses and NRI tax consultation. We invite you to book a consultation with our chartered accountants and build a health tax plan that works for you.