Union Budget 2024: Changes proposed to IBC, Tribunals and Income Tax Act

While presenting the Union Budget 2024-2025 in Parliament today, Finance Minister Nirmala Sitharaman highlighted that appropriate changes will be made to the Insolvency and Bankruptcy Code (IBC) to reform and strengthen tribunals in India.."Appropriate changes to IBC, reforms and strengthening of NCLT and NCLAT will be initiated to speed up Insolvency resolution. Additional tribunals will be established. Some will be notified to decided cases exclusively under the Companies Act," she said.Steps will be taken to reform Debts Recovery Tribunals, with additional tribunals being established to expedite the recovery process, Sitharaman added."The Insolvency and Bankruptcy Code has resolved more than 1,000 companies resulting in direct recovery of ₹3.3 lakh crore to creditors. In addition, 28,000 cases involving over ₹10 lakh crore have been disposed of even prior to admission," she highlighted..The Finance Minister further said that an integrated technology platform will be established to enhance outcomes under the IBC, aiming for consistency, transparency, timely processing and improved oversight for all stakeholders.Additionally, the services of the Centre for Processing Accelerated Corporate Exit (C-PACE) will be extended to facilitate the voluntary closure of LLPs, thereby reducing the closure time..Regarding the Income Tax Act, Sitharaman proposed increasing the monetary limits for filing appeals related to direct taxes, excise and service tax to ₹60 lakh in tax tribunals, ₹2 crore in High Courts, and ₹5 crore in the Supreme Court."To reduce litigation and provide certainty in international taxation, we will expand the scope of safe harbour rules and make them more attractive. We will also streamline the transfer pricing assessment procedure," she added..With respect to personal income tax rates, she recommended two key announcements for those choosing the new tax regime. First, the standard deduction for salaried employees is proposed to increase from ₹50,000 to ₹75,000. Additionally, the deduction on family pension for pensioners is proposed to rise from ₹15,000 to ₹25,000. These changes will benefit 4 crore salaried individuals and pensioners, she said..Second, the income tax rate structure is proposed to be revised as follows:0-₹3 lakh - nil₹3-₹7 lakh - 5%₹7 lakh-₹10 lakh - 10%₹10 lakh-₹12 lakh - 15%₹12 lakh-₹15 lakh 20%Above ₹15 lakh -30%As a result of these changes, a salaried employee in the new tax regime stands to save upto ₹17,500 in income tax, Sitharaman added..[Check details on Budget here]