Finance Minister Nirmala Sitharaman will present the country’s general budget on February 1. Before the announcement of the Finance Minister, the salaried people are expecting relief in income tax. People hope that the Finance Minister will make income up to Rs 10 lakh tax free.
Budget 2025
Budget 2025 Exclusion: Finance Minister Nirmala Sitharaman will present the country’s general budget on February 1. Before the announcement of the Finance Minister, the salaried people are expecting relief in income tax. People hope that the Finance Minister will make income up to Rs 10 lakh tax free. Before the budget announcement, a look at India’s income tax journey…
How much has India’s income tax system changed
A large part of the government’s income comes from people’s income i.e. income tax. The government levies tax on your earnings, on your income. If we look at the journey of income tax, when the country’s budget was presented for the first time in 1947, income of Rs 1500 was made tax free.
No tax on income of Rs 1500
At the time of independence, income up to Rs 1500 was tax free in the country. Income tax was changed year after year. There came a time when people were given tax exemption on the number of children.
Different tax system for married and unmarried people
In the year 1955, for the first time, different systems were introduced in the country for married and unmarried people. While income up to Rs 2000 was made tax free for couples, the tax-free income for unmarried people was Rs 1000.
Tax exemption based on number of children
In the year 1958, income tax exemption was given on the basis of number of children. People with one child were tax free on income of Rs 3300, while more exemption was given on two children. Tax free income for 2 children was Rs 3600. On the other hand, couples who did not have any children were not taxed on earning Rs 3000.
Highest tax
Income tax was increased in India in the year 1973-74. The maximum limit of income tax was made up to 85 percent. After adding surcharge to it, it reached up to 97.75 percent. During this period, an income of Rs 100 was taxed up to Rs 97.75. However, income up to Rs 2 lakh was tax free, that is, on earning more than Rs 2 lakh, the government kept Rs 97.75 for every hundred rupees. At that time, the Prime Minister was Indira Gandhi and the Finance Minister was Yashwantrao B. Chavan. At that time, income tax rates were at a historic high. The government named that budget as Black Budget.
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