Union Budget on income tax: New and old tax regimes merged, TDS simplified

New Delhi: The government on Tuesday announced that it will undertake a comprehensive review of the Income Tax Act to make it easy to read.

Presenting the Union Budget for 2024-25, Finance Minister Nirmala Sitharaman also said the government will come out with SoP (standard operating procedure) for TDS defaults and simplify and rationalise compounding of such offences.

She added that two tax exemption regimes for charitable trusts will be merged into one.

Also, 58 per cent of corporate tax have come from simplified tax regime in FY23.

More than two-thirds of individuals availed of the new income tax regime, Sitharaman said in the Lok Sabha.

The FM further announced that DPI apps will be developed for credit, e-commerce, education, health, law, MSME service delivery, and urban governance.