Budget 2024 expectations: Will the government offer any big gift in terms of income tax? Sources say that something special may happen in the budget of 2024. Because, this is the budget before the elections. However, if the vote is on account, only time will tell whether the wish of the taxpayers will be fulfilled or not. At present the buzz is that people with salaries up to Rs 10 lakh may get some good news in Budget 2024.
Will the income tax slab change?
According to sources associated with the Finance Ministry, a change in the income tax slab may be seen in the budget to provide relief to the taxpayers. However, there will not be much change. But, some relaxation is possible for people of a particular salary group. Talking about the old tax regime, there are a total of 5 slabs of income tax in the current system. Among these, income up to Rs 2.5 lakh comes in tax free category. After this, there is 5 percent tax on income between Rs 2.5 lakh to Rs 5 lakh.
At the same time, 20 percent tax has to be paid directly on income of Rs 5 lakh to Rs 10 lakh. 30 percent tax is levied on income between Rs 10 lakh to Rs 20 lakh and those with income above Rs 20 lakh also have to pay 30 percent tax. At the same time, in the new tax regime, till now salary up to Rs 7 lakh comes under the tax free ambit. Bigger relaxation can be given in this. This can be increased to Rs 10 lakh. There will be no change in the old tax regime. This step can be taken to rationalize the new tax regime.
What will be in the new income tax slab?
If sources in the Finance Ministry are to be believed, the salary structure of up to Rs 10 lakh will be in focus in the budget. There is a possibility of change in this. Currently, salary up to Rs 10 lakh comes in two tax slabs. The first is Rs 6 to 9 lakh, on which there is 10 percent tax. Whereas, 9 lakh to 12 lakh on which there is 15 percent tax. In such a situation, an attempt may be made to convert the two tax slabs into one slab of Rs 10 lakh. There is a plan to impose 10 percent tax on this also. In this, the slab of Rs 6-9 lakh can be changed.
Will people with income of Rs 15 lakh also benefit?
In the current tax system, in the new regime, 20 percent tax is levied on those with income of Rs 15 lakh. Meaning, if we look at up to Rs 10 lakh, tax is levied at the rate of 10 and 15 percent. At the same time, there is 20 percent tax on Rs 15 lakh. There is a possibility that the 15 percent slab may be abolished. 10% tax should be levied directly on income up to Rs 10 lakh and 20% tax should be levied on income between Rs 10 to 15 lakh.
In such a situation, the tax burden on those falling in the 10 to 12 percent slab will increase, but there will be huge relief up to Rs 10 lakh. If sources are to be believed, the plan is to break the slab and make it more attractive than the old regime. However, other relaxations will not be available in this.
If salary is above Rs 15 lakh then there is no benefit
Be it new tax regime or old tax regime, in both the structures, people with salary above Rs 15 lakh have to pay 30 percent tax. The situation will remain similar in the coming days also. There is no intention to give any special exemption to this income group.
