homefinance NewsExclusive | FM Nirmala Sitharaman stresses on steady direct tax reforms and need to improve tax filing ease
Exclusive | FM Nirmala Sitharaman stresses on steady direct tax reforms and need to improve tax filing ease
While presenting Budget 2024, Finance Minister Nirmala Sitharaman refrained from making changes to the existing income tax regime. However, the FM announced withdrawal of tax disputes arising from demands for 10 million taxpayers.
Finance Minister Nirmala Sitharaman, in a post-Budget conversation with Network18's Editor-In-Chief, Rahul Joshi, provided insights into the government's approach towards direct tax reforms. She highlighted the imperative to enhance the ease of filing taxes and streamline the overall taxation process.
Acknowledging the efforts in this direction, she said, "The direct taxation reforms are a steady job in the pipeline, and some results come out and more work is happening."
Notably, Budget 2024 dropped tax disputes arising from demands for 10 million taxpayers.
If the tax demand raised by the department is ₹25,000 or less, and the demand is older than March 2010, the taxman will no longer pursue the case.
Similarly, demands of ₹10,000 or less, which have been raised between April 2011 and March 2015, will also be withdrawn, the FM said while making Budget announcements.
In response to queries regarding alignment of tax rates for salaried individuals with those applicable to corporates, Sitharaman refrained from committing to specific measures but reiterated the government's focus on facilitating taxpayers.
She emphasised the need for continuous improvement in the taxation regime, affirming, "(We) need to improve in ease of filing taxes, more work can always be done."
She articulated a vision for a transparent and efficient tax system.
The FM further outlined the significance of coordinated efforts between the central government, state governments, and local bodies.
She stressed the need for synergy in implementing reforms, "When reforms are talked about, we normally always say, three levels, where it has to be carried out with the same vigour."
Addressing the question on the lack of sops and populist measures in Budget 2024, Sitharaman explained, "Yes, the Budget yesterday did not have any sops announced. We treated it like a true vote on account, an Interim Budget before an election."
The concept of a 'vote on account,' outlined in Article 116 of the Indian Constitution, entails an advance grant from the Consolidated Fund of India to meet short-term expenditure needs until the commencement of the new financial year.
(Edited by : Shoma Bhattacharjee)
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