Finance Pastor Nirmala Sitharaman’s Association Financial plan 2024 acquainted a few significant changes with the new personal duty system, pointed toward supporting purchaser spending and monetary development.
The tax rate has been reduced from the previous limit of Rs 6 lakh to 5% for annual incomes between Rs 3 lakh and Rs 7 lakh.
Also, the Rs 6 lakh to Rs 9 lakh piece, charged at 10%, presently applies to those procuring up to Rs 10 lakh for each annum. For salaried individuals earning up to Rs 10 lakh per year, this will be beneficial.
Dipesh Jain, Accomplice at Monetary Regulations Practice, noticed that the changed duty chunks will help people with yearly wages up to Rs 7 lakh, who recently confronted a 10% expense rate however will currently be charged at 5%. The new slab adjustments will also be beneficial to individuals who earn less than Rs 10 lakh annually.
Sitharaman said that salaried taxpayers will save up to Rs 17,500 annually with the increased standard deduction. About four crore salaried individuals and pensioners will gain from the increase in the family pension deduction, which will go from Rs 15,000 to Rs 25,000.
According to Pradeep Gupta, co-founder and vice-chairman of Anand Rathi Group, these changes aim to boost consumer spending and economic vitality by providing selective income tax reliefs and encouraging consumption.
Taxpayers with incomes between Rs. 12 lakh and Rs. 15 lakh will continue to pay a tax rate of 20%, while those with incomes above Rs. 15 lakh will pay a tax rate of 30%.
“The Budget proposal includes small benefits, such as revising the tax slab rate from 10% to 5% for individuals with an income of Rs 7 lakh who are not eligible for a tax rebate, and from 15% to 10% for those earning Rs 8-9 lakh,” stated Mihir Ashok Tanna, Associate Director – Direct Tax, S K Patodia & Associates LLP.