Budget 2024: Personal Tax Slabs may become more attractive; Details here
Prospects are that both the new as well as the old tax regime will get some more fruits in the shape of incremental changes in the next budget.
Hikes in sections of personal taxes can be expected in Union Budget 2024-25 and some changes are possible under the new and old income tax slabs for some relief to the taxpayers for spending more in the middle-class economic segment.
Some of the changes that are expected to occur include: There is the prospect of improving the tax structure under the old regime, for example by readjusting the tax slabs and raising the standard exemption limits. Under the new regime, changes are also expected to improve consumption expenditures.
Old Income Tax Regime
Tax slabs under the old income tax structure will be rationalized.
The current tax slabs proposed for the new categories of earners in the range of Rs.15 lakh and above, may be altered as per the government sources. As it is now, the tax percentage is 5% after the Taxable income amount of Rs.2.5 lakh and it rises up to 30% after Rs.10 lakh of Taxable income.
New Income Tax Regime
There are indications that the government’s new income tax rates may also show the exemption limit increasing from the current Rs.3 lakh to Rs.5 lakh. The move has arisen in a climate where attempts are being made to extend personal income tax exemption to certain categories of taxpayers as per an approach to stimulate the consumption of the middle-income earners thus fueling the country’s GDP.
Introduced in the Budget 2020, the taxpayer has the option to avail of either the old tax regime which offers a high tax rate though the specific investments and exemptions are available or the new tax regime where the tax slab rates are lower. However, it is without most exemptions or deductions like 80C/ HRA (House Rent Allowance)/ LTA (Leave Travel Allowance) etc.
