Ravi Agarwal, Chairman of the Central Board of Direct Taxes (CBDT), highlighted on Thursday that the updated tax provisions and the revamped capital gains tax system are designed to help individuals save more money and simplify the tax assessment process, thereby offering relief to taxpayers. In an interview Agarwal stated that the Union Budget 2024 is set to positively affect the general public.
He explained that under the new tax regime, there has been a reduction in income tax rates and an increase in the standard deduction, which will enable people to save more and have greater flexibility in their investments and expenditures.
Specifically, the income tax rate for earnings up to Rs 10 lakh has been lowered to 10 percent, and the standard deduction has been raised from Rs 50,000 to Rs 75,000.
Regarding the new capital gains tax regulations, Agarwal mentioned that these changes have standardized and simplified the process. He also noted that penalty provisions have been decriminalized and tax assessments have been streamlined.
Agarwal, an Indian Revenue Service (IRS) officer from the 1988 batch, also commented on the new internship scheme, which he believes will greatly benefit youth by offering them opportunities in their areas of interest.
He further said that the decision to enhance the loan limit for 'Mudra' from Rs 10 lakh to Rs 20 lakh would infuse more money into the economy and create better job and skill creation opportunities.
The CBDT has also issued a detailed FAQ document to clarify the new capital gains tax provisions of the 2024-25 Budget.
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