Financial Budget for 2024 (Good News for Taxpayers): The Ministry of Finance is preparing a financial budget for 2024 which will be presented at the start of the parliamentary session in February of 2024. However government has not revealed the changes and other information that will be included in the budget for the financial year of 2024 till yet, but many news sources are predicting that the government can provide relaxation to the taxpayers in this year’s budget. So you can check the latest updates of the Finance Ministry for the financial year of 2024 in this article.
The main source of income of the government is receiving taxes from the citizens. According to the financial and political analysts government can prepare the budget of 2024 by providing tax relaxation to the citizens in India. Currently, the government is collecting tax from 2 tax regimes including the old tax regime and the new tax regime. According to the sources, the government can increase the range of taxpayers in the new tax regime. Currently, the tax slab is starting from 7 lakh rupees in the new tax regime. So it may increase up to 7 lakh rupees.
Financial Budget for 2024 (Changes in Tax slabs)
There is no news about changes in the Tax slab in the budget of 2024. If you talk about the old tax regime, There are a total of five slabs for taxpayers that decide the tax of the financial year for any individual. If any citizen earns place than 2.5 lakh rupees annually then he is not forced to pay tax. The group between 2.5 lakh to 5 lakh rupees annually has to pay 5% of their income in tax to the government for a financial year.
If the annual income of the applicant is between 5 lakh rupees to 7 lakh then they have to pay 20% tax. Citizens who are earning up to 7 lakh to 20 Lakh for more than 20 lakh rupees in only then they have to pay 30% tax to the government. Most taxpayers are using the old tax regime due to the high number of opportunities to get refunds. But the news is not favorable for old tax regime payers.
However, tax slabs in the New Tax Regime start from 3 lakh rupees annually. If you are earning up to RS 3 lakh rupees annually then your income is tax-free. However, incomes between 3 lakh to 6 lakh will have to pay a 5% tax of their income. The group between 6 lakh to 9 lakh rupees have to pay 10% tax. If you are income is between 9 lakh to 1200000 annually then you will be charged 15% tax and 20% tax will be charged from individuals who are earning between 1200000 to 15 lakh annually. If the annual income of an individual in India is more than 15 lakh Rupees then they have to pay 30% tax annually to the Income Tax Department.
Modi govt may announce reliefs for salaried class in Budget
According to The Economist and politicians, the government can increase the Tax slab for the year 2024 in the new tax regime due to upcoming parliamentary elections in 2024. Currently who earn RS 3 lakh annually are labelled tax-free. As per insider information from the Finance Ministry, the upcoming budget is poised to emphasize a salary framework extending up to 7 lakh rupees, and alterations to this structure are under consideration. Presently, earnings up to 10 lakh rupees are categorized into two tax brackets.
The initial bracket covers incomes ranging from 6 to 9 lakh rupees, attracting a 10% tax, while the subsequent bracket encompasses incomes between 9 to 12 lakh rupees, subject to a 15% tax rate. In this scenario, there is a potential move towards streamlining the tax system by introducing a single bracket for incomes up to 7 lakh rupees, coupled with a proposed 10% tax. Furthermore, adjustments may be contemplated for the bracket covering incomes between 6 to 9 lakh rupees.