Finance Minister Nirmala Sitharaman did not announce any alterations to the income tax systems in the Interim Budget 2024-25. However, close to one crore taxpayers are expected to benefit from her decisions.

Finance Minister Nirmala Sitharaman stated that the government would not pursue the retrieval of old and contested direct taxes amounting up to Rs 25,000 until the financial year 2009-10. Moreover, demands for direct taxes up to Rs 10,000 for the fiscal years 2010-11 to 2014-15 would be waived.

"I wish to make an announcement to improve taxpayer services. There are a large number of petty, non-verified, non-reconciled, or disputed direct tax demands, many of them dating as far back as the year 1962, which continue to remain on the books, causing anxiety to honest tax payers and hindering refunds of subsequent years," Finance Minister Nirmala Sitharaman said.

In her address, the Finance Minister highlighted the burden posed by numerous unresolved direct tax demands dating back to 1962. She proposed withdrawing such demands, stating, "I propose to withdraw such outstanding direct tax demands up to twenty-five thousand rupees (Rs 25,000) pertaining to the period up to financial year 2009-10 and up to ten-thousand rupees (Rs 10,000) for financial years 2010-11 to 2014-15. This is expected to benefit about a crore tax-payers."

Prime Minister Narendra Modi commented on this announcement, expressing that the income-tax remission scheme would bring relief to one crore individuals from the middle class.

While this decision is likely to benefit middle-class taxpayers, Sitharaman did not introduce any modifications to the existing income tax structures in the interim budget, which primarily focused on increased spending on infrastructure.

Sitharaman assured taxpayers that their contributions had been utilized judiciously for the country's development and the welfare of its citizens. She conveyed appreciation to taxpayers for their support.