Interim Budget 2024 Tax: During the Interim Budget 2024–25 presentation on Thursday, Union Finance Minister Nirmala Sitharaman maintained the current tax slab rates for both the new and old income tax regimes. Tax rates have been lowered and rationalized by the government. For taxpayers with income up to Rs 7 lakh, there is no longer any tax obligation under the new tax scheme.
“The Finance Minister‘s decision to not tinker with personal income tax slabs and rates in the Interim Budget is understandable from a Prudence perspective,” stated Ashish Aggarwal, Director of Acube Ventures. In order to support growth, fiscal consolidation must be weighed against sufficient capital expenditure in light of the ongoing global headwinds.
Tax slabs have not changed in eleven years, and the Interim Budget contained no plans to change them. Nonetheless, those who fall under the category of captive tax savers and make at least Rs 12 lakh may have grounds to think that the Budget ought to have offered them more advantages.
Although stable GST implementation and robust tax collections are mentioned in the budget speech, the middle class has not yet experienced this prosperity. Certain provisions would have offered some cushion, such as an increased standard deduction, improved housing loan interest exemptions, or adjustments to 80C instruments. Therefore, there is reason for the salaried class to be somewhat disappointed with personal taxes. One hopes that realistic concessions on individual tax burdens can be made sooner rather than later, provided the macro fundamentals continue on their current course. More money in the hands of the middle class pays economic dividends for consumption-led growth to continue, Aggarwal continued.
Finance Minister Sithraman declared that there would be no changes to direct or indirect tax rates in the interim budget for 2024, according to Adhil Shetty, CEO of BankBazaar.com. She did bring up the adjustments made to the new tax system when the rebate was raised from Rs 5 lakh to Rs 7 lakh last year. The budget for 2023 also included a reduction in the number of slabs to five and an increase in the tax exemption limit to Rs 3 lakh. “The new regime made substantial changes to the tax slab.
The announcement from the previous year attempted to include most working people. However, reports suggest that people are still following the previous system, mainly because of things like home loans, tax-saving investments, family health insurance, retirement savings, and more. They are discouraged from switching to the new system by their dedication to tax-saving techniques, Shetty said.
