Budget 2024: When Finance Minister Nirmala Sitharaman presents the full budget of this year on July 22, the eyes of the employed will be fixed on the changes in the tax. It is speculated that this time the government can make 2 big changes in the new regime.
Budget 2024: The month of July is special for the employed in many ways. One, this month the money for appraisal and increment has been received. Secondly, income tax returns are also to be filed in July and the budget can also be presented on the 22nd of this month. This time the budget can also open a box of relief for the employed. It is being speculated that along with increasing the scope of exemption in income tax, the government can also give an additional tax exemption of 50 thousand to the employed.
Although the industry is demanding all kinds of facilities and exemptions. But, it is believed that the Finance Minister can make 2 decisions related to personal tax in the budget. Salaried persons will directly benefit from this and they will save thousands of rupees. It is also being said that the changes in tax will be made only under the new regime. The government’s intention is to promote the new regime and is preparing to add more and more taxpayers to it.
Standard deduction may be doubled
Analysts say that the government can double the standard deduction by giving a big relief to the employed. Currently, a standard deduction of Rs 50,000 is available every financial year. This is given in lieu of the expenses of the employed and no document is required for this. It is being said that now this limit will be doubled to Rs 1 lakh. This means that those who do jobs will get a direct tax exemption of Rs 1 lakh.
Direct tax exemption of 5 lakhs
Finance Minister Nirmala Sitharaman can make another announcement regarding tax in this year’s budget. It is speculated that the basic exemption can be increased from 3 lakhs to 5 lakhs. In the new tax regime, the basic exemption is 3 lakhs right now, while in the old regime it is only 2.5 lakh rupees. By increasing this exemption to 5 lakhs, both low-income earners and high-income earners will be able to save thousands of rupees in tax.
Zero tax on income up to 8 lakhs
If the government increases the standard deduction from 50 thousand to 1 lakh, then the tax exemption available under the new regime will also increase from the current 7.5 lakhs to 8 lakhs. Those earning more than this will also benefit if the basic exemption is increased to 5 lakhs. After this decision, the calculation of tax will start from the income of more than 5 lakhs. If we consider the current slab, then there is a 5% tax on income between 3 to 6 lakhs, which will be applicable after 5 lakhs. This simply means that earlier, where there was a tax of 15 thousand at the rate of 5% on income between 3 to 6 lakhs, now there will be a tax of only 5 lakhs.
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