Interim Budget 2024: Should ITR Deadline be Extended to Ease Taxpayer Burden? Here's What Professionals Say

Interim Budget 2024: According to Hiren Thakkar, proprietor of Hiren S Thakkar & Associates Chartered Accountants, the government addressed a long-standing demand in the previous Budget by rationalising income tax slabs and introducing a new tax system with significantly lower tax rates.

Hiren Thakkar Points to Potential Changes in Taxation

In an interview with MintGenie, Thakkar stated that there may be some rate rationalisation in the GST because numerous necessities, such as biscuits, ice cream, and health insurance premiums, are taxed at a higher rate of 18%.

Hiren said, "Prior to elections, budgets are typically populist, with little expectation of significant deviations. I think that areas that emphasise women's empowerment, infrastructure spending, and employment development will be prioritised. Two things I hope to see happen are the elimination of dividend double taxation and the inclusion of gold and silver exchange-traded funds (ETFs) in the list of permissible investments under Section 80C of the Income Tax Act of 1961. Savings will become more digital as a result."

Interim Budget Tax Reforms

When asking about no significant tax reforms have ever been proposed in an interim budget before. Do you believe that this time, things will be different? Hiren said, "No, because the administration addressed a long-standing need in the previous Budget by rationalising income tax bands and introducing a new tax regime with significantly lower tax rates. Given that numerous necessities like ice cream, biscuits, health insurance premiums, and other commodities are taxed at a higher rate of 18%, there may be some rate rationalisation in the GST."

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