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Major Direct tax proposals (from speech)

1. Rollout of next gen ITR form
2. New limit for 44AD & ADA : 3 crore & 75 Lacs
3. Expense deduction to MSME to be allowed on payment basis
4. New cooperatives manufacturing tax @ 15% if upto 31.03.24
5. Higher loan limit /cash deposit Rs 2 lacs for PAC society -RDB
6. Startups:
a) Date of incorporation for. startup extended to 31.03.24
b) Extension of CF losses 7 yrs in case of change in shareholders

7. Selective scrutiny + More CIT to dispose off small appeals

8. Extension of tax benefits for IFSC

9. Personal Income tax
a) Tax rebate limit extended to 7 lacs (new regime)

b) change in tax slabs & new tax rates

0-3 L : Nil
3-6 L : 5%
6L-9L : 10%
9L-12L: 15%
12-15 L : 20%
15L +: 30%

c) Salaried class & pensioners(incl family pensioners) :
Standard deduction extended

d) Highest surcharge reduced from 37% to 25%
Now MMTR : 39%

e) Leave encashment exemption (pvt) increased from 3Lacs to 25 Lacs

f) New tax regime is now default tax regime -Old tax regime will continue

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New tax slab rate

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