Steps to make new tax regime more attractive; clear and concise capital gains tax regime expected: Tapati Ghose, Deloitte

Tapati Ghose, Partner, Deloitte, says “we could expect amendments towards simplification of tax, ease of compliance, and a review of Chapter VI A. As regards simplification of taxes, additional steps to make the new tax regime more attractive with further widening of the slabs and reduction of some of the tax rates could be on the cards.”


What is expected on the taxation front from Interim Budget 2024?
Tapati Ghose: From a personal taxation standpoint, not much change is expected. However, we could expect amendments towards simplification of tax, ease of compliance, and a review of Chapter VI A. As regards simplification of taxes, additional steps to make the new tax regime more attractive with further widening of the slabs and reduction of some of the tax rates could be on the cards.


A clear and concise capital gains tax regime to boost the capital markets is expected as well. A capital gains regime is complex, dependent on period of holding, residential status, nature of asset, and with ever increasing types of products, compliance becomes extremely difficult for a layman. Review of Chapter VI A may also be on the cards on some key areas only.

Providing a larger cover for medical insurance with ever increasing medical costs, there is an expectation that the government will increase the relief under Section 80D.

Removing the differentiation in treatment of interest on bank deposits, on savings deposits and fixed deposits, and bringing the thresholds of Section 80TTA at par with Section 80TTB is expected as well. From an ease of compliance perspective, with a growing number of individuals who are crossing borders, travelling on work, business overseas, and claiming the benefits of double taxation treaties these should be made much more simple.

For instance, a relaxation of treaty benefits and process for filing of Form 67 for foreign tax credits and alignment for filing of India tax return with the overseas tax return in a calendar year country is required for proper compliances. While there is judicial precedent, clarification is required in the law for treaty reliefs to be provided at the stage of tax withholding by the employer, and the relevant forms be it Form 24Q, be it 16, should also be enabled for such claims.