Budget 2024: Discover the Beneficiaries and the Relief Offered by the Revised Income Tax Slab | Nirmala Sitharaman.
Finance Minister Nirmala Sitharaman presented the national budget on Tuesday. Following the Modi government's third consecutive term, this budget carried high expectations across all sectors. It aims to benefit the poor, middle class, and wealthy alike. Millions of taxpayers in the new tax regime will receive significant relief through an increased standard deduction. However, there is some disappointment due to the rise in short-term and long-term capital gains taxes and the removal of indexation benefits.
Salaried individuals and pensioners will gain from the recent changes. Significant relief measures encompass incentives for companies offering staff training, a reduction in corporate tax for foreign firms, increased loans for higher education, and a doubling of Mudra loans for small businesses. Additionally, the budget has introduced various other advantageous decisions, such as financial support for states, reduced prices for cancer drugs, mobile phones, chargers, and precious metals like gold and silver, along with the removal of the angel tax to support startups.
Regarding Personal Income Tax, the speaker mentioned two announcements for those choosing the new tax regime. First, they proposed increasing the standard deduction for salaried employees from ₹50,000 to ₹75,000. Similarly, they suggested enhancing the deduction on family pensions for pensioners from ₹15,000 to ₹25,000. This is expected to provide relief to about four crore salaried individuals.
The proposed new tax regime includes a revised tax rate structure. The new rates are as follows: Nil for income between 0-3 lakh rupees, 5 per cent for 3-7 lakh rupees, 10 per cent for 7-10 lakh rupees, 15 per cent for 10-12 lakh rupees, 20 per cent for 12-15 lakh rupees, and 30 per cent for income above 15 lakh rupees. These changes allow a salaried employee in the new tax regime to save up to ₹ 17,500 in income tax. Additionally, other changes are outlined in the annexure. The proposals result in a revenue loss of approximately ₹ 37,000 crore—₹ 29,000 crore in direct taxes and ₹ 8,000 crore in indirect taxes—while generating an additional ₹ 30,000 crore. The net revenue loss is about ₹ 7,000 crore annually. The budget was then commended to the House, concluding with "Jai Hind."
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