Income tax exemption: Excellent news for those who work! The budget may provide an income tax exemption of up to ₹ 10 lakh; see updates

Income tax exemption: Excellent news for those who work! The budget may provide an income tax exemption of up to ₹ 10 lakh; see updates

Income tax exemption: Excellent news for those who work! The budget may provide an income tax exemption of up to ₹ 10 lakh; see updates

Income tax exemption: In order to help taxpayers, a shift in the income tax slab within the budget is possible, 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.

Anticipations for the 2024 Budget: As always, taxpayers are looking forward to a reduction in their tax burden this time around. Hope is still present. What response the Finance Minister provides is yet to be seen. Will the middle class have a unique outcome, 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' preferences will be carried out if the vote is taken into consideration. The current talk is that the Budget 2024 may bring 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 income tax would help people with the budget; changes may be seen in the tax slab. That being said, not much will change. But, those in a certain pay range may unwind to some extent. In reference to the previous tax structure, the present system 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 a 5% tax. In addition, for income between Rs 5 lakh and Rs 10 lakh, a direct tax payment of twenty percent would be required. Thirty percent tax is levied on income between Rs 10 lakh and Rs 20 lakh, and thirty percent tax is also due on income over Rs 20 lakh. Simultaneously, under the current tax structure, salaries up to Rs 7 lakh are exempt from taxes. Significant savings are possible with this. It is possible to raise this to Rs 10 lakh. The current tax structure won't be altered. The new tax system may be rationalized by taking this action.

What changes are in store for the new income tax slab?

The budget would prioritize pay structure up to Rs 10 lakh, if Finance Ministry sources are to be trusted. This might potentially change in the future. There are now two tax slabs for salaries up to Rs 10 lakh. 10% tax is applied on the first, which ranges from Rs 6 to Rs 9 lakh. On Rs 9 lakh to Rs 12 lakh, a 15% tax is also applied at the same time. An effort might be made in such a case to combine both tax slabs into a single Rs 10 lakh slab. Additionally, a ten percent tax is to be applied to this. Modifications may be made to the Rs 6-9 lakh slab in this.

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, taxes on income up to Rs 10 lakh are levied at a rate of 10 and 15 percent. In addition, Rs 15 lakh is subject to a 20% tax. It is possible to do away with the 15 percent slab. 10% direct taxation on income up to Rs 10 lakh and 20% direct taxation on income between Rs 10 and Rs 15 lakh are the appropriate rates. 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. If reports are to be trusted, the goal is to smash the slab and create something more visually appealing than the previous setup. There won't be any further relaxations, however.

If the pay exceeds Rs 15 lakh, there won't be any benefits offered.

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