Finance Minister Nirmala Sitharaman revealed in a recent interview that, Union Budget 2024 is aimed at providing relief to the middle class, albeit within certain limits.
I want to help the middle class, but I also have limitations, stated Nirmala Sitharaman. Since I wish to lower the tax rate, the standard deduction rate has been raised from ₹50,000 to ₹75,000 in order to provide relief. The high-income group’s obligation rises in tandem with the tax rate. The new tax system was implemented with the aim of reducing the tax rate and has lower tax rates than the old tax system,” Times Now quoted her as saying.
Nirmala Sitharaman has expressed her sympathy for the middle class, she told Times Now, “I am also from the middle class. I understand their problems.” Nirmala Sitharaman has highlighted in an interview that before the Goods and Services Tax (GST), different states levied their own taxes on essential commodities, which led to price differences across the country. With the implementation of GST, now the prices of essential commodities have been standardized across the country and the common man has got relief.
Budget 2024 proposes adjustments to income tax slabs under the new tax regime, benefiting taxpayers whose income is up to ₹10 lakh.
The proposed tax slabs are as follows:
₹0 – ₹3,00,000: (0%)
₹3,00,001 – ₹7,00,000: (5%)
₹7,00,001 – ₹10,00,000: (10%)
₹10,00,001 – ₹12,00,000: (15%)
₹12,00,001 – ₹15,00,000: (20%)
₹15,00,001 and above: (30%).
On 23 July, Finance Minister Nirmala Sitharaman presented the third budget from the Modi-led government and seventh budget in a row. For the middle class, the finance minister increased the standard deduction by 50 per cent from ₹50,000 to ₹75,000 and revised the tax slabs under the new income tax regime to give more money to the salaried class.
The new tax slabs under the new income tax regime will come into effect from April 1, 2024 (Assessment Year 2025-26).
Nirmala Sitharaman said that income tax exclusion up to ₹ 3 lakh will continue under the new regime. According to the proposal, income between ₹3-7 lakh will be taxed at 5 per cent, between ₹7-10 lakh at 10 per cent and between ₹10-12 lakh at 15 per cent.
However, income between ₹12-15 lakh is taxed at 20 per cent and above ₹15 lakh at 30 per cent.
Under the current new I-T regime, income between ₹3-6 lakh will be taxed at 5 per cent and income between ₹6-9 lakh will be taxed at 10 per cent.
Income between ₹9-12 lakh and ₹12-15 lakh is taxable at 15 per cent and 20 per cent respectively. A minimum of 30 percent I-T is applicable on income above ₹15 lakh.
But there have been no declared modifications to the previous income tax structure.
