Union Budget 2024: After the formation of the new government, now Finance Minister Nirmala Sitharaman will present the Union Budget for 2024-25 later this month.
Since the beginning of this year, salaried people have been expecting some relief and concessions on the tax front. However, salaried people were disappointed in the interim budget.
Experts believe that providing tax relief to salaried taxpayers can increase spending and ultimately boost consumption. According to a Business Today report, Finance Ministry sources have indicated that the government is considering tax relief measures and a final decision is expected just before the budget presentation. Let’s know what salaried people can expect.
1. There are reports that the Finance Ministry is exploring the possibility of increasing the standard deduction limit for taxpayers in the new tax regime. However, there is little hope of change on this front in the old tax regime. Let us tell you that this is a fixed amount which employed people can deduct from their taxable income without providing proof of actual expenditure.
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2. According to media reports, the government may streamline the tax slabs and reduce taxes to provide relief to individual taxpayers. Currently, under the new system, tax rates range between 5-30% depending on the income level.
3. Deloitte India has reported that the Union Budget 2023 has brought significant revisions in the tax slabs of the new personal tax regime. This includes raising the basic exemption limit from Rs 2.5 lakh to Rs 3 lakh and reducing the surcharge from 37% to 25% for individuals with income above Rs 5 crore. These adjustments were implemented to increase the attractiveness of the new tax regime. However, tax rates for the old tax regime remain unchanged.
