The income tax exemption amount is now Rs 7.5 lakh instead of Rs 7 lakh

The income tax exemption amount is now Rs 7.5 lakh instead of Rs 7 lakh

The income tax exemption amount is now Rs 7.5 lakh instead of Rs 7 lakh

Tax Exemption Budget 2024: According to experts, the government is able to alter the tax structure. Under the new tax structure, there is a refund of Rs 7 lakh, which may be enhanced to Rs 7.5 lakh.

New Delhi: Budget 2024: Tax Exemption: On February 1st, the nation will see the presentation of the budget. This budget marks the end of the Modi administration's term in office. Taxpayers are hoping that the budget would include some special news for them, because it is an election year. According to experts, the administration might alter the tax structure in this budget.

The maximum amount of tax exemption is this

It is anticipated that this budget would include a new financial law from the government. According to sources in the media, this law may be submitted during the budget's second phase. Under the new tax structure, there is a refund of Rs 7 lakh, which may be enhanced to Rs 7.5 lakh. This implies that an additional Rs 50,000 in tax exemptions may be granted.

Possibilities of a tax system reform as well

The government had previously raised the tax regime's exemption threshold from Rs 5 lakh to Rs 7 lakh. It is now anticipated that the government would be able to provide tax-free yearly salaries up to Rs 8 lakh in the next fiscal year. Standard deduction, rebate, and basic exemption may also be included in this. IT

An all-time high number of income tax returns

According to experts, the new tax system has significant modifications in this area. This time around, there has also been a notable rise in income tax returns. Up till December 31, 8.18 crore Income Tax Returns (ITRs) for the fiscal year 2023–24 were submitted, a record amount of ITRs. Under such circumstances, the government may think about improving the new tax system.