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Below the Comment on Review of Income Tax Act by Mihir Tanna, Associate Director - Direct Tax at SK Patodia & Associates LLP

Finance Minister Nirmala Sitharaman presented her record 7th consecutive Union Budget 2024-25 today (on July 23) of Modi 3.0 Gov. From a direct tax perspective, unexpectedly some good things are proposed in the said budget. One of the key announcements was related to the review of the Income tax act. There are certain provisions in the income tax act which are not changed from last so many years or changed in parts and made section reading complex by adding language “provided that”,” further provided”,” Explanation to….”. Review may make the Income Tax Act simpler and litigation free to some extent. Further, foreign company reduction to 35% from 40% will also attract more investment in India and it will support ease of doing business in India. Also it is proposed to Introduce Vivad se Vishwas 2024 after good response from Vivad se Vishwas 2020. It will reduce pendency before various courts and will reduce cost of litigation of taxpayers as well as for the Income Tax Department. In the Budget proposal small benefits are also given by revising tax slab rate from 10% to 5% (for person having income of Rs.7 lac and not eligible for tax rebate), from 15% to 10% ((for person having income of Rs.8-9 lac)

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