Budget 2024 income tax expectations: Modi government may lower personal tax charges, says report – top 5 points

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Budget 2024 income tax expectations: The Modi government is mulling over the potential of decreasing personal tax charges for particular teams of people, in response to two government sources who spoke to Reuters. This transfer has the potential to stimulate consumption in India, which is the third-largest financial system in Asia.
The sources, who requested anonymity as a result of confidential nature of funds discussions, indicated that the plan may be unveiled in July when Finance Minister Nirmala Sitharaman presents the primary Union Budget following the Modi 3.0 government.

Budget 2024 Income Tax Expectations

  • The sources advised Reuters {that a} discount in personal tax may enhance consumption and enhance financial savings for the center class. The first supply talked about that people incomes over Rs 15 lakh ($17,960.42) yearly, as much as a sure undetermined quantity, may obtain some tax aid.
  • The adjustments may very well be made to the brand new income tax regime launched in 2020, the place annual income as much as Rs 15 lakh is taxed at charges between 5% and 20%, whereas earnings over Rs 15 lakh are taxed at 30%.
  • The second supply identified that the personal tax charge will increase six-fold when a person’s income rises from Rs 300,000 to Rs 15 lakh, which they described as “quite steep.”
  • The government may additionally think about reducing personal tax charges for annual incomes of Rs 10 lakh, in response to the primary supply. They added {that a} new threshold is being mentioned for income taxed on the highest charge of 30% beneath the outdated tax system.
  • The second supply famous that any lack of tax income to the government via tax cuts may very well be partially offset by elevated consumption from this class of income earners.

Also Check | Income Tax Slabs FY 2024-25 Explained: New Tax Regime Vs Old Tax Regime – What are the tax charges, slabs & surcharge charges? Find out
Although the Indian financial system expanded at a formidable 8.2% in 2023-24, consumption development has been solely half that charge. During his declare to kind the National Democratic Alliance-led government, Prime Minister Modi had acknowledged that his administration would prioritize rising center-class financial savings and enhancing their high quality of life, the Reuters report mentioned.


Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.

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