Income tax slab: This time the income tax exemption limit can be increased in the budget. Under the new tax system, 5% tax is levied on income above Rs 3 lakh. In this slab, the tax exemption limit can be increased from Rs 3 lakh to Rs 5 lakh.
The Modi government is preparing to present the full budget for the financial year 2024-25 in July. It is believed that taxpayers can be given a big relief in this. This time the income tax exemption limit can be increased in the budget. This change can happen under the new tax system. If this happens, then those with income up to 10 lakhs will get a big relief.
Income tax experts say that the government wants more and more people to choose the new tax regime, so steps can be taken to make it more attractive. Currently, under the new tax system, five percent tax is levied on income of more than three lakh rupees.
It is believed that the tax exemption limit in this slab can be increased from three lakh rupees to five lakh rupees. At the same time, there is a provision of 30 percent tax on income of more than Rs 15 lakh annually. This income limit can be increased to Rs 20 lakh.
People will have more money left
Experts say that if there is relief in the budget, then taxpayers will have more money left in their hands. This will enable them to spend more money. This step of the government will reduce the tax liability of those people by Rs 10,400, whose annual income falls in the range of Rs 7.6 lakh to Rs 50 lakh. At the same time, people falling in the tax slab of Rs 50 lakh to Rs 1 crore will have to pay less tax up to Rs 11,400.
Currently there are two types of systems
There are currently two types of tax systems in the country – old and new. The old system is good for those who are paying home loan EMIs. Or investing in life/health insurance or elsewhere. In this, one gets the benefit of tax exemption under Income Tax Section 80C.
On the other hand, the new system is good for those who have got a new job and who do not have any savings or liabilities. In this, there is no tax on income up to Rs 7.5 lakh. This also includes a standard deduction of 50 thousand.
That’s why relief is possible
Experts believe that the Indian economy is facing the problem of declining consumption. To deal with this, policy makers in the government are in favor of rationalizing the income tax structure. Especially for the low income group. It is believed that tax cuts will increase the income of individuals. As income increases, people will spend more.
This will increase consumption and accelerate economic activity. According to a recent survey, people have expressed concern about inflation, unemployment and declining income. On the one hand, while the Indian economy has grown at the rate of 8.2 percent in 2023-24, on the other hand, consumption has increased at half that pace.
