Income Tax Limit: The budget does not alter the income tax slab; be informed of updates

Income Tax Limit: The budget does not alter the income tax slab; be informed of updates

Income Tax Limit: The budget does not alter the income tax slab; be informed of updates

Income Tax Limit: Under the new tax system, last year, Finance Minister Nirmala Sitharaman raised the income tax refund cap for taxpayers from Rs 5 lakh to Rs 7 lakh.

Union Budget 2024: On February 1st, Finance Minister Nirmala Sitharaman will deliver the budget for the sixth time in a row. This year will see the presentation of an interim budget since it is Lok Sabha election year. According to a senior Income Tax Department official, the interim budget for 2024 would not see an increase in tax exemptions under the new tax system. On February 1st, announcements about the budget will be released. Previous media sources said that taxpayers under the new tax system would be eligible for a vote-on-account personal income tax refund ceiling hike from the existing Rs 7 lakh to Rs 7.5 lakh.

Income tax exemption without a rebate plan

Under the condition of anonymity, an official from the Income Tax Department informed Moneycontrol that there is no intention to provide a refund for income tax exemption. Under the new tax system, the income tax refund maximum for taxpayers was raised from Rs 5 lakh to Rs 7 lakh by Finance Minister Nirmala Sitharaman last year. The previous Rs 2.5 lakh basic exemption ceiling was raised to Rs 3 lakh. Additionally, the national government began deducting Rs 15,000 for family pension.

Advantages of the Rs. 50,000 standard deduction

The 2023 budget provided a standard deduction for salaried class members, retirees, and family pensioners under the new tax structure. Pensioners and members of the salaried class benefited from a standard deduction of Rs 50,000 under the previous tax system. According to a different source, the Center is anticipated to declare TDS exemption on overseas credit and debit card expenditures up to Rs 7 lakh per financial year in the interim budget.

By altering the tax slab in comparison to the previous one, a concessional rate for the new tax system was established. All taxpayers, including Hindu Undivided Families (HUF) and Union of Persons (NOP), were subject to it. The personal income tax code was streamlined, and the number of income tax brackets was decreased from seven to six in Budget 2023. Tell us about the income tax that the new tax system imposes.

> Income up to Rs 3 lakh will be tax-free.> Income beyond Rs 3 lakh to Rs 6 lakh will be subject to 5% tax. 10% is applied on amounts above Rs 6 lakh and up to Rs 9 lakh.

This tax is 15 percent from Rs 9 lakh to more than Rs 12 lakh; 20 percent from Rs 12 lakh to Rs 15 lakh; and 30 percent from Rs 15 lakh to more than Rs 15 lakh annually.

It has been made plain by the administration that those who select the new tax scheme. They will not be eligible for any of the following exemptions and deductions: HRA, LTA, 80C, and 80D. Different kinds of exemptions are now offered under the previous tax system.