Budget: A summary of key tax changes announced in past budgets

UNION BUDGET 2023-24: Here is an overview of key tax changes introduced in the Union Budgets starting from 2019-20, Read.

Overview of key tax changes introduced in the Union Budgets starting from 2019-20, image credit: Reuters

Finance Minister Nirmala Sitharaman is scheduled to unveil the Union Budget for the fiscal year 2024-25 on February 1. As has been the annual tradition, both financial experts and the general public are anticipating significant announcements related to taxation. Over the years, the government has implemented notable modifications to income tax-regulations.

Here is a brief summary of key tax changes introduced in the Union Budgets, starting from 2019-20:

UNION BUDGET 2023-24

Aim to maintain continuity and stability of taxation
Further simplify and rationalize various provisions to reduce compliance burden
Promote entrepreneurial spirit and provide tax relief to citizens
Constant endeavor to improve Tax Payers Services
Making compliance easy and smooth
Proposal to roll out a new form for tax payer convenience
Plans to strengthen the grievance redressal mechanism
Rebate limit of Personal Income Tax to be increased to Rs. 7 lakh
Currently at Rs. 5 lakh in the new tax regime
Individuals in the new regime with income up to Rs. 7 lakh will not pay any tax
New personal income tax regime introduced in 2020 with six income slabs
Proposed change to reduce the number of slabs to five
Increase tax exemption limit to Rs. 3 lakh
Significant relief for all tax payers in the new regime

UNION BUDGET 2022-23

Vision for a reliable tax system
Simplified tax structure, reduced litigation
Introduction of 'Updated Return'
Alternate Minimum Tax reduced from 18.5 per cent to 15 per cent
Surcharge reduced from 12 per cent to 7 per cen for income between Rs 1 crore and Rs 10 crores
Annuity/lump sum allowed for differently abled dependents
Applicable to parents/guardians at age 60
Deduction limit increased from 10 per cent to 14 per cent for State Govt. employees
Parity with central govt. for social security benefits
Incorporation period extended to 31.03.2023
Tax benefits for eligible start-ups
Last date for manufacturing under section 115BAB extended to 31.03.2024
Specific tax regime introduced
30 per cent tax on income from asset transfer
1 per cent TDS on payments above threshold
Appeal filing deferred for identical questions of law
No set-off for loss against undisclosed income
Exemption for non-residents' income
Surcharge rationalisation
No set-off for loss against undisclosed income
Taxable treatment of benefits to agents
Deduction for giver if value exceeds Rs 20,000 in the financial year

UNION BUDGET 2021-22

Corporate tax rate among the world's lowest
Eased taxation for small taxpayers
Doubled return filers to 6.48 crore in 2020
Introduced Faceless Assessment and Appeal
Exempted senior citizens over 75 from filing tax returns
Reduced case reopening time to 3 years
Set up Dispute Resolution Committee
Established National Faceless IT Appellate Tribunal Centre
Rs 85,000 crore tax disputes settled via Vivad Se Vishwas
Relief for NRIs facing issues with foreign retirement accounts
Increased turnover limit for digital transactions to Rs 10 crore
Exempted REIT/InvIT dividends from TDS
Allowed Infrastructure Debt Funds to issue Zero Coupon Bonds
Extended tax benefits for affordable housing projects
Tax incentives for IFSC in GIFT City
Pre-filled returns for capital gains, dividends, etc.
Raised limit for small charitable trusts to Rs 5 crore
Disallowed deduction for late employee contribution deposits
Extended tax holiday eligibility for startups
Extended capital gains exemption for startup investments till March 2022

UNION BUDGET 2020-21

Simplify tax structure, stimulate growth
Middle-class relief.
New regime optional.
Pre-filled returns for simplicity.
Estimated revenue forgone: Rs. 40,000 crore/year
15 per cent rate for new electricity companies
Competitive global rates
DDT removed
Deduction for subsidiary dividends
Estimated revenue forgone: Rs. 25,000 crore/year
100 per cent deduction for 3 of 10 years
ESOP tax payment deferred
Audit threshold increased to Rs. 5 crore
Parity with corporate sector for cooperatives
100 per cent tax exemption for Sovereign Wealth Funds
Extra deduction till 31st March 2021
Extended approval date for tax holiday
Online PAN via Aadhaar
‘Vivad Se Vishwas’ for tax litigations
Faceless appeals and Taxpayers’ Charter
Charity institutions: E-filing, URN issuance, provisional registration
Amendments to benefit from unabsorbed losses and depreciation after amalgamation

UNION BUDGET 2019-2020

Corporate tax rate reduced to 25 per cent for companies with annual turnover up to Rs. 400 crore
Surcharge increased on individuals with taxable income exceeding Rs. 2 crore
India's 'paying taxes' ranking improved from 172 in 2017 to 121 in 2019
Increased by over 78 per cent in the past 5 years, reaching Rs. 11.37 lakh crore
PAN and Aadhaar interchangeability
Pre-filled Income-tax Returns introduced
Faceless e-assessment launched for certain transactions
Additional deduction of Rs. 1.5 lakhs for interest on loans for houses up to Rs. 45 lakh
Rs. 1.5 lakh additional income tax deduction on interest for electric vehicle loans
Customs duty exemption on certain EV parts
Simplification of tax laws
Relief for start-ups on capital gains and 'Angel tax'
Tax on interest of bad debts for deposit-taking and systemically important NBFCs
100 per cen profit-linked deduction in any ten-year block
Exemptions for dividend distribution tax, capital gains, and interest payments
STT restricted to the difference between settlement and strike price for options

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