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Budget 2024: Major Tax Relief for Citizens Announced by Finance Minister Nirmala Sitharaman

2968103 Nirmala Sitharaman1Income Tax: This time the government may give relief in income tax for some special categories. It is being claimed in the news that this time there may be a change in the income tax slab. 

Income Tax Exemption Limit: If you are also a tax payer or file ITR every year, then this news will make you happy. Like every year, this time too, there is a demand to change the tax slab and increase the limit under 80C to give relief to the salaried class. It is expected that this time the government can give relief to the middle class. According to the news published in Moneycontrol, the government is planning to increase the tax exemption limit from the current Rs 3 lakh to Rs 5 lakh under the new tax regime in the budget to be presented in July.

Middle class people may get relief

Earlier, many media reports claimed that this time the government can give relief in income tax to some special categories. It is being claimed in the news that this time the income tax slab can be changed. The government hopes that by increasing the limit of tax rebate, the middle class people will get relief and they will be able to spend more than before. Let us tell you that in the budget of the year 2020, the government had given the option to the common man to select two tax systems. Taxpayers were given two options of old tax regime and new tax regime.

Possibility of reducing the higher tax slab to 25%
In the Old Tax Regime, you get tax rebate on different types of investments. But in the new tax regime, the tax rate is low but you do not get the benefit of much exemption or deduction. In the old tax regime, you can claim deduction for different types of investments, exemptions like HRA and Leave Travel Allowance (LTA). Officials also said that the government is unlikely to reduce the higher tax slab of 30% to 25% in the new tax regime. The government wants that there is a need to promote consumption for low-income people at present.

The government wants to bring people into the new tax system
. The government is not thinking of changing the tax rates in the old tax system. However, many people are demanding that the scope of the highest tax rate (30%) be increased from Rs 10 lakh to Rs 20 lakh. Actually, the government wants to bring as many people as possible into the new tax system. There are fewer exemptions and deductions in the new system, but generally the tax rates are also lower. In the new tax system, those earning more than Rs 15 lakh annually are taxed at 30%, whereas in the old system this rate was applicable on those earning more than Rs 10 lakh

The government is not planning to make any changes in the old tax regime. In fact, many people are demanding that the highest tax rate of 30% be increased from Rs 10 lakh to Rs 20 lakh. The government aims to bring more and more people under the new tax regime. There are fewer exemptions and deductions in the new tax regime. But usually the tax rate is also low. In the new tax regime, 30% tax is levied on those earning more than 15 lakh annually. Whereas in the old tax regime, there is a provision for those earning more than 10 lakh to pay 30 percent tax.