India Interim Budget 2024 – Highlights
On February 1, 2024, the Finance Minister of India, Ms. Nirmala Sitharaman presented the interim budget before the Parliament. As this is an election year, the interim budget does not contain any significant tax related changes and a full-fledged budget will be presented after the formation of new government after the elections. Due to increasing tax revenue, the budget deficit is expected to be at 5.1% of the gross domestic product in Financial Year (FY) 2024-25 as against 5.8% in the FY 2023-24.
Tax Rates
Individuals:
There are no changes proposed in Personal Income tax slabs and rates. The tax rates applicable for FY 2024-25 (to individuals below the age of 60 years) are same as applicable for FY 2023-24, which are as under:
Tax Regime without deductions* (default tax regime) |
Tax Regime with deductions* |
||
Annual Taxable Income (In INR)
|
Income Tax Rate |
Annual Taxable Income (In INR)
|
Income Tax Rate |
Up to 300,000 |
Nil |
Up to 250,000 |
Nil |
300,001 to 600,000 |
5% |
250,001 to 500,000 |
5% |
600,001 to 900,000 |
10% |
500,001 to 1,000,000 |
20% |
900,001 to 1,200,000 |
15% |
Above 1,000,000 |
30% |
1,200,001 to 1,500,000 |
20% |
|
|
Above 1,500,000 |
30% |
|
|
Companies:
There is no change in corporate income tax rates (CIT). The key CIT rates applicable to Indian companies (domestic companies) are as under:
Category/ Condition for FY 2024-25
|
Income Tax Rate (Excluding surcharge and cess) |
Domestic manufacturing companies incorporated on or after October 1, 2019, and which commence manufacturing on or before March 31, 2024, and have opted for special/ optional tax regime |
15% |
Companies opting for special/ optional tax regime where exemptions/deductions cannot be claimed |
22% |
Company with total turnover or gross receipt in the FY 2022-23 not exceeding INR 4 billion |
25% |
Any other domestic company |
30% |
The above tax is further increased by surcharge at rates mentioned below and a health and education cess @ 4%
Other Changes
© Shan & Co 2024