As was widely expected, the finance minister did not announce any major changes in tax rules in the Interim Budget for 2024-25. But there were many other announcements that could have a far-reaching impact on your finances.
Let's try to look into the fine prints of the budget speech of the finance minister.
Withdrawal of disputed tax demands
The proposal to recall old disputed tax demands comes as a big relief for millions of taxpayers. Tax demands of up to Rs 25,000 till 2009-10 and of up to Rs 10,000 till 2014-15 will be withdrawn. This would not only free taxpayers from anxiety, but also give them the refunds that were held up due to pending demands. In her speech on February 1, Sitharaman said this would benefit nearly one crore taxpayers. That’s almost 14 percent of the estimated 7 crore assessees.
Extension of tax holiday for start-ups
The budget gave relief to entrepreneurs by proposing to extend the tax holiday offered to startups for another year till March 31, 2025. The tax holiday for startups was introduced in 2017 and gives full tax rebate to startups on profits made for three years during 10 years of operations. Only startups with a turnover of less than Rs 100 crore in any of the previous financial years are eligible for this scheme.
This tax holiday would energise the startup ecosystem and encourage young people to realise their entrepreneurship dreams. The setting up of a Rs 1-lakh-crore fund for funding innovation and research is a step in this direction.
Housing scheme proposed for the middle class
The budget also sought to give a fillip to the government’s 'Housing for All' mission. The finance minister proposed a housing scheme for the middle and lower income groups. Though the details of the scheme have not been announced yet, the focus is clearly on affordable housing. The segment has witnessed a decline in the past 2-3 years and the new scheme could help it bounce back. It’s pertinent to note that such a programme could have a ripple effect on the economy because many ancillary industries are linked to the housing construction industry.
Rooftop solar panel scheme
The scheme is another win-win proposal announced in the budget. It will not only help harness solar energy and reduce the carbon footprint but also provide people with an opportunity to earn. The scheme will be extended to up to one crore houses. It will offer 300 units of power for free and help users save close to Rs 1,500 per month.
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