Union Budget 2024 Highlights: Announcements by Finance Minister Nirmala Sitharaman

Summary of Direct and Indirect Tax Proposals: Budget 2024-25

 Summary of the direct and indirect tax proposals made in the Budget 2024-25 (Finance Bill 2024) presented by Smt Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs:

Highlights of the Direct Tax Proposals of Finance Bill, 2024

No changes in Tax Rates

No changes have been proposed to the existing rates of direct and indirect taxes. The existing rates of income tax, gst, import duties, etc. have been retained.

To provide continuity, some tax benefits and exemptions have been extended by 1 year until 31st March 2025. These include:

  1. Tax benefits for startups;
  2. Tax exemptions on certain income for International Financial Services Centers (IFSCs); and
  3. Tax exemptions on investments made by sovereign wealth funds and pension funds.

The Interim Budget 2024 maintains the status quo on tax rates and extends certain tax breaks by a year to provide stability and continuity in taxation. No new changes or reforms have been introduced to the tax structure or rates.

Withdrawal of Outstanding direct tax demands

The FM has announced to withdraw the outstanding demands of income tax. Here is a summary of the key points regarding the withdrawal of outstanding direct tax demands announced in the Interim Budget 2024:

i) In line with the government’s vision to improve ease of living and doing business, outstanding petty direct tax demands up to Rs 25,000 dating back to 1962 will be withdrawn for the period up to FY 2009.

ii) Similarly, outstanding demands up to Rs 10,000 will be withdrawn for the FY 2010-11 to 2014-15.

iii) These are non-verified, non-reconciled or disputed demands that continue to remain on the books, causing anxiety for taxpayers.

  1. Withdrawing these demands will help provide relief to honest taxpayers and enable refunds for subsequent years.
  2. This is expected to benefit about 1 crore taxpayers who have such outstanding demands.
  3. The move aims to improve tax payer services and reduce harassment of taxpayers over small disputed sums dating back decades.

In short, the Interim Budget 2024 has announced the withdrawal of old, petty direct tax demands up to Rs 25,000 till FY 2009-10 and Rs 10,000 between FY 2010-11 to 2014-15 to provide relief to taxpayers.

Highlights of the Indirect Tax Proposals of Finance Bill 2024

The FM has proposed in Budget 2024 to retain the same tax rates in respect of GST, import duty, etc. indirect taxes as are applicable at present, i.e. existing GST and import duty rates shall continue in FY 2024-25 as well.

BUDGET HIGHLIGHTS 2024-25, Ministry of Finance

Chairman, CBIC has launched CBIC’s WhatsApp Channel – ‘CBIC India’

In the weekly newsletter dated January 8, 2024, Chairman Sanjay Kumar Agrawal of the Central Board of Indirect Taxes and Customs (CBIC) shared noteworthy updates.

From the launch of CBIC’s WhatsApp channel to commendable achievements, the newsletter provides insights into the latest developments within the organization.

Here are the detailed Analysis:

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  1. WhatsApp Channel Launch:

Chairman Agrawal introduced the recently launched CBIC India WhatsApp channel. With a presence on various social media platforms, including Twitter, Facebook, Instagram, YouTube, and Koo, CBIC aims to enhance taxpayer information and facilitation. The WhatsApp channel, a pioneering move by a government department, already boasts around 7,500 followers.

  1. IRS Officers Passing Out Ceremony:

The newsletter highlights the Passing Out Ceremony of the 73rd Batch of IRS (C&IT) Officers. Chairman Agrawal emphasizes the significance of knowledge, citing the academy’s motto. The trained officers, ready to serve, demonstrate espirit de corps and are prepared to administer customs and indirect taxes.

  1. Medals and Recognitions:

Exceptional officers are recognized during the ceremony, with medals awarded for outstanding performance during their probationary period. Notable achievements include the FM and Chairman Gold Medal, Kaushalya Narayanan Memorial Gold Medal, Director General Gold Medal, and N. K. Upadhyay Memorial Gold Medal.

  1. Vigilance Achievements:

CBIC achieved a record number of disposals of vigilance cases in 2023, with 524 disciplinary proceedings disposed of. The Chairman commends the collective effort and expresses confidence in sustaining this momentum for the upcoming year, aiming for new heights in vigilance administration.

5. Relief Measures for Rain-Affected Areas:

Due to heavy rains in Tamil Nadu, CBIC approved the extension of due dates for filing GSTR-3B and Annual Return. This decision aims to provide relief to taxpayers in rain-affected areas.

  1. Customs Success Story:

The newsletter highlights a successful case booked by Trichy Customs (Preventive) Commissionerate, showcasing the vigilance and teamwork of officers. A specific intelligence-led operation led to the recovery of 7.70 kgs of gold worth Rs. 4.85 Crore.

Conclusion: Chairman Sanjay Kumar Agrawal’s weekly newsletter encapsulates the dynamism of CBIC, showcasing achievements, recognitions, and significant initiatives.

From technological advancements like the WhatsApp channel launch to the vigilance administration accomplishments, the newsletter underscores CBIC’s commitment to efficiency, transparency, and serving the public interest.

Stay tuned for more updates and insights in the weeks to come, as CBIC continues its journey towards excellence in customs and indirect taxes administration.

WhatsApp Channel

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New ITR forms: What’s new in ITR-1 and ITR-4 for AY 2024-25?

Income Tax
CBDT has released the new ITR forms – ITR-1 and ITR-4 – for FY 2023-24 early this year. These forms are applicable for filing income tax return before July 31, 2024, unless extended.

New ITR forms AY 2024-25: Taxpayers will now be required to provide information regarding cash receipts and all their bank accounts within the country according to the latest Income Tax Return (ITR) Forms for the Assessment Year 2024-25, as notified by the Central Board of Direct Taxes.

CBDT has released the new ITR forms – ITR-1 and ITR-4 for FY 2023-24 early this year.

These forms are applicable for filing income tax return for AY 2024-24 with the last date of July 31, 2024, unless extended.

One noteworthy feature of the new ITR forms is that The Finance Act, 2023 has modified Section 115 BAC, establishing it as primary tax regime for individuals, HUFs, AOPs, BOIs, and AJPs. Under this amendment, if an assessee prefers not to adhere to the new tax regime, they must expressly opt out and select the Old Regime for their taxation.

The ITR 1, also known as Sahaj, can be filed by individuals with an income up to Rs.50 lakhs. This includes income from salary, one house property, other sources such as interest, dividends, etc and agricultural income up to Rs.5,000.


Taxpayers will need to provide details of all their bank accounts operational in the previous year along with the type of account.

The updated income tax return forms also include a special section for deductions for Agniveers, the youth serving in the armed forces under the Agnipath scheme, as per Section 80CCH.


Individuals, Hindu undivided families (HUFs), and firms, excluding limited liability partnerships (LLPs), with a total income up to Rs.50 lakhs and income from business and profession, can file ITR 4, also known as Sugam.

In the previous year, the forms were notified in February. Previously, there was a separate column for cryptocurrency.  However, in the new ITR, a new disclosure has been added to specify “receipts in cash’ in the New ITR 4 Form.

Here are some cases in which the assessee cannot file ITR 1 –

  • Any individual having an income of more than INR 50 lakhs.
  • An individual holding a directorial position in a company or having unlisted equity shares during the financial year.
  • Non-residents and Resident but not ordinarily resident (RNOR).
  • Individuals with income from more than one house property
  • Income from lottery, horse races, and legal gambling.
  • Short-term and long-term capital gains
  • Agricultural income is more than 5000.
  • Income from business and profession
  • Any resident having assets outside India
  • Individuals claiming Foreign Tax Credit under sections 90, 90A and 91.
  • Deferred Income Tax on ESOP.

Here are some cases in which the assessee cannot file ITR 4 –

  • If the turnover of the business exceeds Rs. 2 crores (3 crores for FY- 2023-24), the taxpayer will have to file ITR-3
  • If your total income is more than INR 50 lakhs
  • Have income from more than one house property and own a foreign asset
  • Signing authority in any foreign account
  • Having a foreign income source
  • Have directorship in a company
  • Non-resident or RNOR status
  • Having unlisted equity shares
  • If the ESOP payment is deferred to ESOP
  • In case you have any brought forward losses.

Know about: “Discard Income Tax Return option.”

The income tax department has introduced a new functionality on its website- ‘Discard ITR’.
This new feature will allow taxpayers to discard their previously filed but unverified Income Tax Returns (ITR). 

Starting from Assessment Year 2023-24, this new ‘Discard ITR’ functionality, provides users with the ability to discard original, belated, or revised ITR, expanding the scope for revision beyond just errors or omissions.

– Opting to discard the ITR is equivalent to non-filing of the return.

– Following the discard, a new ITR can be submitted.

However, if the fresh ITR is filed after the due date, it will incur late fees and other associated consequences.

– Once the discard option is exercised, it cannot be reversed.

Hence, use this option cautiously.

– The discard feature is available until the ITR filing deadline, i.e., until December 31 following the end of the financial year.

Hence, timely action is advised.

The tax department has released FAQs to address common queries on Discard ITR Option. Here is all you need to know about the new functionality on the income tax website that allows taxpayers to discard their unverified Income Tax Returns (ITR).

1)Taxpayers can avail of the option of “Discard” for the ITRs being filed u/s 139(1) /139(4) / 139(5) if they do not want to verify it.

2)However, if the “ITR filed u/s 139(1)” is discarded and the subsequent return is filed after the due date u/s 139(1), it would attract implications of belated return like 234F, etc., 

3) To access the ‘Discard’ option, users can follow the specified pathway on the income tax website. On the income tax portal, users can find the Discard option www.incometax.gov.in → Login → e-File → Income Tax Return → e-Verify ITR → “Discard”

4) Users can avail of this option only if the ITR status is “unverified” / “Pending for verification”. 

5) Users can utilize the discard option repeatedly as long as the ITR status remains unverified or pending verification.

6) The feature is available for AY24 onwards. Once an ITR is discarded.

7) This option will be available only till the time limit specified for filing ITR u/s 139(1)/139(4) /139(5) (i.e., 31st December of respective AY as of now).

8) Once an ITR is discarded, it cannot be reinstated, making the action irreversible and essentially disclaiming the filing of the ITR.

Meanwhile, a record number of over 7.85 crore Income Tax Returns were filed till October 31 this year, said the Central Board of Direct Taxes (CBDT). According to the official release, October 31 was the due date for filing ITRs (other than ITR-7) for taxpayers not having any international or specified domestic transactions.

Source: Discard Return – FAQs

IT Refund: IT Department urges Taxpayers to respond to Past Tax Demands.

With 2.75 crore refunds already processed, the I-T department has asked taxpayers to respond to outstanding tax demands promptly.

The Income Tax Department has urged taxpayers to address any outstanding tax demands for previous years in order to facilitate faster clearance of refunds for the 2022-23 fiscal year. This is a taxpayer-friendly measure, as it gives taxpayers an opportunity to clarify the status of any outstanding demands and ensure that they receive their refunds as quickly as possible.

The Income Tax Department on September 23, 2023, called upon taxpayers to promptly respond to intimation of outstanding tax demands, adding that it will help in faster processing of income tax returns (ITR) and quicker issuance of refunds.

For the Assessment Year 2023-24, a total of 7.09 crore returns have been filed. Of these, 6.96 crore ITRs have been verified, 6.46 crore returns have been processed, and 2.75 crore refund returns have already been issued as per the latest data from the I-T department.

The Income Tax Department is making every effort to complete the processing of ITRs and issuance of refunds expeditiously, it said in a social media post on X. However, a significant hurdle in achieving this goal is that there are previous outstanding tax demands.

What are pending tax demands?

After you file your returns, the Income Tax Department inspects the tax declarations and if there are any mismatches with your actual tax liability, it issues an “outstanding tax demand” notice.

Section 245(1) of the Income-tax Act, 1961, necessitates offering taxpayers an opportunity to provide their input before adjusting the refund against any existing demand. Taxpayers are required to agree, disagree, or clarify the status of the demand.

Taxpayers who have outstanding demands from previous years will receive notifications from the department. So it has requested the taxpayers to respond to such intimations to enable “cleaning up/reconciliation” of pending demands and facilitate timely issue of refunds. It will not only aid in resolving pending demands but also expedite the timely issuance of refunds.

How to Respond to Outstanding Tax Demands?

In its official website, the Income Tax Department shows how one can respond to outstanding demands. Here are the steps to follow:

To begin the process, taxpayers should visit the official Income Tax Department’s e-filing portal at https://www.incometax.gov.in/iec/foportal/.

Under the ‘e-File’ menu, taxpayers should locate and click on the ‘Response to Outstanding Demand’ option.

In the subsequent screen, taxpayers will find a list of response options. They can select from the following choices:

a) Demand is correct

b) Demand is partially correct

c) Disagree with demand

d) Demand is not correct but agree for adjustment

Submit Your Response: Depending on the chosen response, taxpayers should follow the instructions provided on the portal. If the taxpayer selects ‘Demand is correct,’ they should click on the ‘Submit’ button to confirm their choice and complete the response submission process.

However, if the ‘Demand is correct’ option is confirmed, taxpayers will not have the option to disagree with the demand later and any refund owed will be adjusted against the outstanding demand. Taxpayers also have the option to pay the demand directly by clicking the link under the ‘Pay Tax’ option.

Income Tax Department > Tax Services > Submit Response to Outstanding Tax Demand

CBDT extends deadline for filing ITR return and submitting audit report.

The government extended the date for filing income tax returns for companies by one month to November 30.

Income Tax Department has extended the deadline for ITR filing for certain categories of taxpayers. This has brought great relief to the taxpayers/institutions falling in these categories and they have also been saved from paying heavy penalties due to delay.

According to the Income Tax Department, till September 5, about 6.98 crore individual taxpayers have filed ITR.

The Income Tax Department has extended the deadline for filing income tax returns for charitable trusts, religious institutions and professional bodies by one month to November 30. The Income Tax Department said in a statement that the due date for filing income tax return in Form ITR-7 for the assessment year 2023-24, which is 31 October 2023, has been extended to 30 November 2023.

Also, the due date for submission of audit report for 2022-23 by any fund, trust, institution or any university or educational institution or medical institution in Form 10B/10BB has been extended by one month to 31 October 2023. Earlier the last date for submission of audit report was 30 September.

ITR-7 is filed by institutions involved in charitable and religious activities, research institutes, professional bodies, political parties and electoral trusts also file tax returns through ITR-7.

The Finance Ministry said in a statement on Monday, the deadline for filing income tax return in Form ITR-7 for the assessment year 2023-24 has been extended from October 31, 2023 to November 30, 2023.

In the current financial year, till mid-September, net direct tax collection has increased by 23.51% to Rs 8.65 lakh crore. The Finance Ministry said that there has been a huge increase in direct tax collection due to more advance tax payment by the companies. During this period, advance tax payment has increased by 21%.

According to the data, net tax collection has been 47.45% of the budget estimate of Rs 18.23 lakh crore for the current financial year. In the last financial year 2022-23, direct tax collection was Rs 16.61 lakh crore.

CBDT Circular: https://incometaxindia.gov.in/pages/communications/index.aspx

Amnesty Scheme for LLPS – MCA issues circular condoning delay in filing Form 3, 4 and 11

This scheme aims to grant a condonation of delay to LLPs regarding the filing of Form-3, Form-4, and Form-11 from September 1, 2023 to September 30, 2023.
This scheme aims to grant a condonation of delay to LLPs for filing of Form-3, Form-4, and Form-11 from September 1, 2023 to September 30, 2023.

The Ministry of Corporate Affairs (MCA) has notified the Limited Liability Partnership (LLP) Amnesty Scheme. The ministry vide circular number No. 8/2023 issued on 23rd August 2023 condoning the delay in filing of Form-3, Form-4 and Form-11 under Section 67 of Limited Liability Partnership (LLP) Act, 2008 read with Section 460 of Companies Act, 2013.

These forms shall be available for filing from 01.09.2023 onwards till 30.11.2023 (both dates inclusive). Also, the LLPs availing the scheme shall not be liable for any action for delayed filing of the Form-3, Form-4 and Form-11.

Based on the representations received by the government that certain LLPs are finding difficulties in filing Form- 3 (LLP Agreement and changes therein), Form- 4 (Notice of appointment, cessation, change in name/ address/designation of a designated partner or partner and consent to become a partner/ designated partner) and Form- 11 (Annual Return of LLP) for various reasons including due to mismatch in the  master data in electronic registry of the Ministry.

Due to this, the records/data in the electronic registry are also not being updated. Thus, to address these issues, the government has decided to grant one-time relaxation in additional fees to those LLPs who could not file the Form 3, 4 and 11 within the due date and provide an opportunity to update their filings and details in master data for future compliances.

The following are highlights of Amnesty Scheme:

  • The Form-3 and Form-4 would be processed under Straight Through Process (STP) mode for all purposes except for change in business activities.
  • The stakeholders are advised to file these forms in sequential manner i.e., the filing for old events date may be filed first and so on so as to update the master data in proper manner.
  • At the time of filing these forms, the pre-filled data as per existing master data of the LLP shall be provided in each of above mentioned forms but the same shall have the facility to edit. The onus of filing correct data would be on the stakeholders.
  • In case of misrepresentation, the Designated Partner and the professional certifying the form may be liable for adverse action as per provisions of the law.
  • The filing of Form-3 and Form-4 without additional fee shall be applicable for the event dates 01.01.2021 and onwards.
  • For events dated prior to 01.01.2021, these forms can be filed with 02 times and 04 times of normal filing fees as additional fee for small LLPs and Other than small LLPs respectively.
  • The filing of Form-II without additional fee shall be applicable for the financial year 2021-22 onwards.
  • Form-II for previous years (prior to financial year 2021-22) can be filed with 02 times and 04 times of normal filing fee as additional fee for small LLPs and Other than small LLPs respectively.
  • These forms shall be available for filing from 01.09.2023 onwards till 30.11.2023 (both dates inclusive). The LLPs availing the scheme shall not be liable for any action for delayed filing of the Form-3, Form-4 and Form-11.

Source: General-Circular-No-08-20230823