Budget 2024: Will the interim budget live up to expectations? 5 income tax related announcements made by the Finance Minister last time
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budget 2024: Finance Minister Nirmala Sitharaman (Nirmala Sitharaman) is going to present the budget in a few weeks. There is a lot of enthusiasm and expectations among the people regarding this interim budget coming before the Lok Sabha elections. The middle class is once again expecting a change in the tax slab. Besides, the discount on home loan interest payment is also likely to increase.
budget 2024: The last budget of this tenure of the Central Government is going to be presented by the Finance Minister. Before this, we are telling you what announcements were made related to income tax in the Union Budget 2023.
Announcement of new tax slab: Finance Minister Nirmala Sitharaman announced in her Budget 2023 speech that under the new personal tax regime, the income slabs have been reduced from six to five. Focusing on the middle class people, the government has also increased the basic tax exemption limit from Rs 2.5 lakh to Rs 3 lakh under the new tax regime.
New tax regime as default tax regime: Nirmala Sitharaman also announced that the new tax regime will now be the default tax regime. The new tax regime was introduced in 2020.
change in discount: People earning up to Rs 5 lakh will not have to pay any income tax under both the old and new systems. In the budget, the limit under the new tax system has been increased to Rs 7 lakh. In simple words, people with income up to Rs 7 lakh do not have to pay any tax.
For salaried class and pensioners: For salaried, pensioners and family pensioners, the Finance Minister has introduced a standard deduction under the new tax regime. The old tax regime already provides a standard deduction of Rs 50,000 to salaried employees and pensioners. With the relaxation, salaried individuals earning up to Rs 7.5 lakh will not have to pay any tax under the new tax regime.
leave encashment: The government has proposed to increase the tax exemption limit on leave encashment on retirement of non-government salaried employees from Rs 3 lakh to Rs 25 lakh. The limit of Rs 3 lakh was last fixed in 2002 during the Atal Bihari Vajpayee government.
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