Certainly! Here’s an expanded version of the information about the upcoming interim Budget 2024 and its potential impact on middle-class taxpayers in India:
As India anticipates the interim Budget 2024, scheduled for February 1, Finance Minister Nirmala Sitharaman prepares to unveil potential changes that could impact taxpayers, particularly the middle class. With the Lok Sabha elections looming in the near future, expectations for relief from this year’s Budget are notably high.
Rumors and speculations suggest a possible boon for middle-class income taxpayers, hinting at an anticipated increase in the tax rebate under the new income tax regime. Sources close to the discussions have revealed that this move aims to provide much-needed relief to the middle class in the lead-up to the impending elections, as reported by Mint.
The prevailing tax rebate, currently available for income up to Rs 7 lakh, might see an upward revision to approximately Rs 7.5 lakh under the new tax regime, as hinted by the undisclosed sources. If these speculations materialize, it could offer substantial relief to middle-class taxpayers. Notably, Section 87A provides a rebate under the new tax regime for taxable incomes up to Rs 7 lakh. Individuals with taxable income below Rs 7 lakh, opting for the new tax regime in FY 2023-24, are exempt from paying taxes. The anticipated interim Budget 2024 could potentially extend this tax rebate to Rs 7.5 lakh, expanding from the current Rs 7 lakh threshold.
Following the adjustments announced in Budget 2023, the income tax slabs under the new regime, effective from April 1, 2023, have been structured as follows:
- Up to Rs 3 lakh: NIL
- Rs 3 lakh – Rs 6 lakh: 5%
- Rs 6 lakh – Rs 9 lakh: 10%
- Rs 9 lakh – Rs 12 lakh: 15%
- Rs 12 lakh – Rs 15 lakh: 20%
- Over Rs 15 lakh: 30%
Meanwhile, for the old tax regime, the tax slabs are differentiated across various age groups – those below 60, senior citizens (above 60), and super senior citizens (above 80).
Income tax slabs for individuals aged below 60 years & HUF:
The potential alterations expected in the interim Budget 2024 are anticipated to significantly impact the financial landscape for middle-class taxpayers. A prospective increase in the tax rebate threshold to Rs 7.5 lakh under the new tax regime could provide substantial relief to a larger segment of the middle-income bracket.
The restructuring of income tax slabs in Budget 2023 marked a significant shift in tax liabilities for individuals falling under the new tax regime. If the speculated changes in the upcoming interim Budget come to fruition, it could further ease the burden on middle-class taxpayers and potentially influence their financial planning and decisions.
As the anticipation builds towards Finance Minister Nirmala Sitharaman’s presentation of the interim Budget 2024 on February 1, all eyes remain on the potential changes that could shape the tax landscape, especially for the middle class, in the run-up to the crucial Lok Sabha elections.