Budget 2024: Minister of Finance Nirmala Sitharaman expected to present Union Budget 2024 in Parliament on February 1, 2024. As 2024 is the year of Lok Sabha elections, the Budget 2024it will be provisional, or vote on account. This budget is presented to ensure government finances and the smooth functioning of ministries until a new government is elected.
According to Tapati Ghose, Partner at Deloitte India, Budget 2024 may focus on the new income tax regime. “This year, the government is expected to present the vote on account before the 2024 general election. While it may not be the full budget, it is not expected to be silent,” she states in Deloitte’s Budget 2024 expectations report.
Union Budget 2024: Personal fiscal expectations
If we look at the past pattern of FM, the focus has been on making structural changes rather than providing tax incentives, notes Tapati. “In light of this, one can expect a focus on the New Tax Regime, faster processing of tax refunds, robust tax collection mechanisms and quick resolution of appeals,” she says.
Tapati also sees the Union Budget 2024 as an opportunity to expand the information captured through the Annual Information Statement (AIS). Currently, AIS captures information relating to payments where taxes are deducted/charged, bank interest, dividends, sale and purchase of capital assets, remittances abroad, refund from the income tax department, etc.
Their recommendations on AIS are:

  • The information, collected based on the PAN, is reported in the AIS to provide a panoramic view of transactions under the PAN. However, the information captured does not include transactions that may be relevant and reported on the tax return. Among many transactions where PAN is quoted, transactions such as Employer's Provident Fund, Public Provident Fund, National Pension Scheme, life and health insurance policies, principal and interest on loan repayment, could be additionally captured to extend AIS coverage. This would help in pre-filling the tax return with details regarding exemptions, applicable deductions, taxation of withdrawal proceeds, etc., she says.
  • Currently, the AIS provides information on the purchase and sale of securities in SFT shares of the AIS of the NSDL/CSDL. While this information helps provide a bird's eye view of the transactions carried out by the taxpayer in securities and mutual funds, it does not serve the purpose of capturing information and facilitating data collection to prepare the tax return. Among other information available in the AIS for this segment, it may be useful to mention the date and cost of acquisition. This helps in the accurate calculation of capital gains, without the taxpayer having to go through records to obtain this information.



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