Benefits of income tax exemption for salaried individuals The budget may provide an income tax exemption of up to ₹ 10 lakh; see updates

Benefits of income tax exemption for salaried individuals The budget may provide an income tax exemption of up to ₹ 10 lakh; see updates

Benefits of income tax exemption for salaried individuals The budget may provide an income tax exemption of up to ₹ 10 lakh; see updates

Income tax exemption: To help taxpayers, a shift in the income tax slab may be included in the budget, according to sources connected to the Finance Ministry. That being said, not much will change. But, those in a certain pay range may unwind to some extent.

Expectations for the budget in 2024: Awaiting the 2024 budget. Taxpayers demand respite from the strain of paying taxes, as always. Hope is still realized. What the Finance Minister provides is yet to be determined. Will the middle class get any unique benefits, or will the tax bracket stay the same? Will there be a large income tax gift from the government? There are rumors that the 2024 budget may include something extraordinary. because this is the pre-election budget. Nevertheless, only time will tell whether the taxpayers' desire will be granted if the vote is taken into consideration. There's already a talk that Budget 2024 may provide some good news to those earning up to Rs 10 lakh.

Will the tax slab for income change?

Sources close to the Finance Ministry claim that the budget would alter the income tax bracket in order to provide taxpayer relief. That being said, not much will change. But, those in a certain pay range may unwind to some extent. Regarding the previous tax structure, the present one consists of five income tax slabs. Income up to Rs 2.5 lakh is exempt from taxes among them. After that, income between Rs 2.5 lakh and Rs 5 lakh is subject to 5% tax. In addition, for income between Rs 5 lakh and Rs 10 lakh, a direct tax payment of twenty percent is required. Income between Rs 10 lakh and Rs 20 lakh is subject to a 30% tax, while those earning more over Rs 20 lakh are also required to pay 30% tax. Simultaneously, under the new tax system, salaries up to Rs 7 lakh are now tax exempt. Greater ease may be provided in this way. It is possible to raise this to Rs 10 lakh. The previous tax structure won't alter. It is possible to rationalize the new tax system by taking this action.

What will the new income tax slab consist of?

The budget would prioritize the compensation structure up to Rs 10 lakh, if Finance Ministry sources are to be believed. This might potentially change in the future. There are now two tax slabs for salaries up to Rs 10 lakh. The first is between Rs 6 and Rs 9 lakh, with a 10% tax. On the other hand, 9 lakh to 12 lakh are subject to a 15% tax. An effort could be made in such a case to combine the two tax slabs into a single Rs 10 lakh slab. Additionally, a ten percent tax is to be applied to this. This allows for the modification of the Rs 6-9 lakh slab.

Will those making Rs 15 lakhs a year also profit?

In the new tax structure, those earning more than Rs 15 lakh are subject to a 20% tax. In other words, tax is imposed at a rate of 10 and 15 percent on amounts up to Rs 10 lakh. On Rs 15 lakh, there is a 20% tax at the same time. It's possible that the 15 percent slab may be eliminated. Direct tax levies on income up to Rs 10 lakh should be 10%, and on income between Rs 10 and Rs 15 lakh, 20%. The tax burden for those in the 10 to 12 percent tax bracket may rise in this scenario, but there will be significant respite up to Rs 10 lakh. The goal is to smash the slab and make it seem better than the previous administration, if reports are to be believed. Other forms of relaxation won't be possible with this, however.

Benefits are absent if pay exceeds Rs 15 lakh.

Individuals earning more than Rs 15 lakh are required to pay 30% tax under both the old and new tax regimes. The circumstances will not change in the next days. This income category is not going to get any special exemptions.