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Budget 2024: The interim budget, to be tabled in Lok Sabha on February 1, may raise the tax rebate under the new income tax slab to Rs 7.5 lakh from Rs 7 lakh prevalent as of now, a report by Mint said, citing people close to the discussions on Sunday (January 7). The move, if made, will imply that people with an income of Rs 7.5 lakh per annum, after a standard deduction of Rs 50,000, will be exempted from paying income tax from 2024-25. According to the report, Finance Minister Nirmala Sitharaman may introduce a Finance Bill to enforce the changes.
In the Union Budget 2023, the Narendra Modi government had raised the rebate under the new income tax regime from Rs 5 lakh to Rs 7 lakh. The basic exemption limit was also raised from Rs 2.5 lakh earlier to Rs 3 lakh. The government had also introduced a deduction of Rs 15,000 for the family pension.
What happened in previous years?
According to the report, the income tax slabs were reduced from seven to six earlier aiming to make the personal income tax rules easier.
According to an earlier report by Business Standard, a record 81.8 million income tax returns (ITRs) were filed for the assessment year 2023-24 till December 31, which was 9 per cent higher than 75.1 million ITRs filed in the same period in 2022-23.
The Centre has been aiming to focus on boosting its tax receipts, while also reducing the tax burden on people. According to the Business Standard report, in April-November period in 2023, the tax revenue increased 14.7 per cent, which was higher than the budget estimate of 10.5 per cent for direct taxes and 10.45 per cent for indirect taxes.
A report by news agency PTI quoted Deepak Mohanty, chairperson of the Pension Fund Regulatory and Development Authority, as saying that the body has recommended employer contributions to the National Pension Scheme up to 12 per cent to be exempted from the income tax.
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