Income Tax Slab: Great news! The budget does not alter the income tax slab; stay informed

Income Tax Slab: Great news! The budget does not alter the income tax slab; stay informed

Income Tax Slab: Great news! The budget does not alter the income tax slab; stay informed

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

Union Budget 2024: A senior official of the Income Tax Department stated that there will be no increase in tax exemption under the new tax system in the interim Budget 2024. Announcements regarding the budget will be made on February 1. Earlier in some media reports, it was being said that in the new tax system, the limit of personal income tax exemption in Vote-on-A has been fixed for the taxpayers. The account can be increased from the existing Rs 7 lakh to Rs 7.5 lakh. Finance Minister Nirmala Sitharaman will present the budget for the sixth consecutive year on February 1.

There is no income tax exemption program.

The Finance Minister, Nirmala Sitharaman, raised the income tax exemption limit for taxpayers from Rs 5 lakh to Rs 7 lakh under the new tax regime last year. The basic exemption limit was raised from Rs 2.5 lakh to Rs 3 lakh, and the central government also introduced a deduction of Rs 15,000 for family pension. An Income Tax Department official, speaking on condition of anonymity, told Moneycontrol that there are no plans to relax the income tax exemption.

Advantages of the Rs. 50,000 standard deduction

Another official stated that it is anticipated that the Center will announce TDS exemption on foreign credit and debit card spends up to Rs 7 lakh every financial year in the interim budget. The standard deduction under the new tax regime for the salaried class, pensioners, and family pensioners was introduced in the Budget 2023. In the old tax system, the benefit of standard deduction of Rs 50,000 is also given to the salaried class and pensioners.

Inform us about the income tax to be levied under the new tax system: In Budget 2023, personal income tax rules were simplified and income tax slabs were reduced from seven to six. In comparison to earlier, the tax slabs were changed and a new tax system with a concessional rate was implemented. It was applicable to all taxpayers including Hindu Undivided Families (HUF) and Union of Persons (NOP).

> Income up to Rs 3 lakh would not be subject to taxation.

> 5% tax between Rs 3 lakh and Rs 6 lakh on income.

> more than Rs 6 lakh and 10% more than Rs 9 lakh.

> On amounts beyond Rs 9 lakh to Rs 12 lakh, this tax is fifteen percent.

> 20% tax on earnings in the range of Rs 12 lakh to Rs 15 lakh.

> 30% tax on yearly income over Rs 15 lakh

The government has made it clear that those who choose for the new tax system would not be eligible for the various deductions and exemptions, such as HRA, LTA, 80C, and 80D. Currently, there are a variety of exemptions accessible under the previous tax system.