Team Blitz India
NEW DELHI: Driven by the increasing income of individuals, the collections from net direct taxes — personal income tax and corporate tax — have so far grown by 20 per cent. At this pace, the mop-up is likely to be around Rs19 lakh crore in the fiscal ending on March 31, 2024.
The projected amount will exceed the estimate of Rs 18.23 lakh crore in the 2023-24 Budget. Over the years, the Government has been trying to make the tax regime simpler with lower rates and fewer exemptions. In 2019, the government offered a lower rate of tax for corporates who forego exemptions. Similar scheme was introduced for individuals in April 2020.
The new income tax regime for individuals was made more attractive in the 2023-24 Budget by rationalising the tax slabs, raising basic exemption limit to Rs 3 lakh and including standard deduction of Rs 50,000. It has also been made the default tax regime in the income tax return form.
