A senior officer of the Income Tax Department said that there will be no increase in tax exemption under the new tax regime in the interim budget 2024. Announcements regarding the budget will be made on 1 February. Earlier, it was being said in some media reports that for taxpayers in the new tax regime, the limit of personal income tax rebate in vote-on-account can be increased from the current Rs 7 lakh to Rs 7.5 lakh.

No rebate plan in income tax exemption

An Income Tax Department official told Moneycontrol on the condition of anonymity that there is no plan to give rebate in income tax exemption. Last year, Finance Minister Nirmala Sitharaman had increased the income tax rebate limit for taxpayers from Rs 5 lakh to Rs 7 lakh under the new tax regime. The basic exemption limit was increased to Rs 3 lakh from the earlier Rs 2.5 lakh. The central government also started a deduction of Rs 15,000 for family pension.

Benefit of standard deduction of Rs 50000:

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

The new tax regime was introduced with a concessional rate by changing the tax slab as compared to earlier. It was applicable to all taxpayers including Hindu Undivided Families (HUF) and Union of Persons (NOP). In Budget 2023, personal income tax rules were simplified and income tax slabs were reduced from 7 to six. Let us know about the income tax levied under the new tax regime-

> There will be no tax on income up to Rs 3 lakh.
> 5% tax up to income of more than Rs 3 lakh – Rs 6 lakh.
> Above Rs 6 lakh and up to Rs 9 lakh it is 10 percent.
> From Rs 9 lakh to more than Rs 12 lakh, this tax is 15 percent.
> 20 percent tax on income between Rs 12 lakh to Rs 15 lakh.
> 30 percent tax on annual income above Rs 15 lakh

It has been made clear by the government that those who choose the new tax regime. They will not be able to avail various types of exemptions and deductions including HRA, LTA, 80C, 80D. Currently, different types of exemptions are available under the old tax regime.

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At present, income up to Rs 2.5 lakh is tax free, but it can be increased to Rs 3 lakh. Finance Minister Nirmala Sitharaman (FM Nirmala Sitharaman) can give a big gift from the general public to the middle class.

According to media report, the tax free limit can be 3 lakhs , this time the taxpayers can get many big gifts in the budget, but the biggest relief is that this time the government can increase the tax free limit. Is. It is expected that the government can increase it from 2.5 lakh to 3 lakh, which means you will have to pay less tax than before.

The limit was increased 9 years ago.

The last increase in this limit was in the year 2014. At that time, the government had increased this limit from Rs 2 lakh to Rs 2.5 lakh. There has been no change in this limit for the last 9 years. This is the last full budget of the second term of the Modi government, so this time the government can make many big announcements.

The limit is 3 lakh for senior citizens.

Let us tell you that now you do not have to pay tax on salary up to Rs 2.5 lakh and in this budget, the government can increase your relief by Rs 50,000 more. On the other hand, if we talk about senior citizens, then for those people this limit is 3 lakh rupees.

How much is the income tax slab now

>> Rs 2.5 lakh annual income – tax free
>> 2.5 to 5 lakh annual income – 5% tax
>> 5 to 10 lakh annual income – 20% tax
>> 10 Annual income more than lakh – 30% tax

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Therefore, this time it is expected that Finance Minister Nirmala Sitharaman will give many gifts to the people this time. If sources are to be believed, there is a possibility of change in the current income tax slab in this year’s budget. Income tax payers also hope that in the budget, the government will try to woo the middle class by increasing the income tax limit.

Even in the last budget, it was expected that the government would give tax relief to the middle class. But, this was not done. Reviewing Budget 2022, TV Mohandas Pai, chairman of Aerin Capital Partners and renowned financial expert, said that Finance Minister Nirmala Sitharaman has turned the budget into a ‘transformational budget’ by not giving tax relief to the middle class. It is expected that this time the Finance Minister will not let this opportunity pass.

If the income tax limit is increased by changing the income tax slab, then the middle class will be benefited the most. The middle class faced the biggest problem in Kovid-19. Most of the jobs in this category went during the Corona period. This class also spent the most on health.

Now the Indian economy has recovered to a great extent from the effect of Corona. The income of the government is increasing. This has raised hopes that this time the government will definitely give tax relief.

In March 2022, Finance Minister Nirmala Sitharaman had told that a total of 8,13,22,263 people have filed income tax in the assessment year 2020-21 i.e. 2019-20 financial year. If we consider only four members in the family of an income tax payer, then there are 32 crore people, whom we can call middle class.

The middle class is the engine of consumption in the Indian economy. This is the population that buys cars and takes home loans. They are the main taxpayers of India and also the consumers.

Experts say that if the government increases the income tax limit by changing the income tax slab in the budget, then more money will come in the hands of the middle class of the country. This will also increase consumption. This will not only benefit the country’s economy, but BJP can also get political advantage in the general elections to be held in the year 2024.

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Apart from increasing the Basic Tax Limit, the Finance Minister can make many big announcements. Currently only 21 days are left for the budget to come. Let us tell you that this time on which fronts there is a possibility of getting relief-

Tax limit may increase after 9 years

Tell me, there has not been any change in the tax limit for the last 9 years, so this time the government can give a big relief in this limit. Along with this, employed people can also get a big benefit under 80C.

80C limit may increase

Apart from this, the government can also increase the scope of exemption available under 80C in income tax. At present, under section 80C on income, the benefit of exemption is available on investment up to Rs 1.5 lakh. In this, apart from government schemes like PPF, Sukanya Samriddhi, many schemes including life insurance are included. Increasing the limit of 80C will give great relief to the job profession.

Basic limit of income tax may increase Experts believe that this time the government can increase the basic limit from Rs 2.50 lakh to Rs 3.50 lakh. Let us tell you that the last increase in this limit was in the year 2014. Earlier its limit was Rs 2 lakh, at that time it was increased by Rs 50,000 to Rs 2.5 lakh. There has been no change in this limit for the last 9 years, due to which it is believed that this time the Finance Minister can give a big relief by increasing this limit.

Tax exemption can be available on FDs up to 3 years, along with this, the Finance Minister can also make tax deposits up to 3 years tax free. Everyone from the general public to the middle class has a lot of expectations from this budget. Let us tell you that now the benefit of tax exemption is available on FDs up to 5 years, which can be reduced to 3 years. By doing this, you can get great options for investment.

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