To please the taxpayers, the government may make minor changes in the new tax regime in Budget 2024. In this, consideration is being given to increasing the existing tax exemption. The current tax exemption in the new tax regime is Rs 7 lakh. It can be increased to Rs 7.5 lakh. Let us know about it in detail.
There is good news for taxpayers. They may get some good news in the upcoming budget. This is an election year, so the government will try to woo the taxpayers. Therefore, there are chances of taxpayers getting big relief in the budget. If sources are to be believed, there may be a change in the new tax regime in the Vote on Account budget to be presented on February 1. The scope of existing tax exemption can be increased. The government can bring a new finance bill for this change. If sources are to be believed, it can be placed in Parliament in the second phase of the budget session.
What is going to change?
To please the taxpayers, the government may make minor changes in the new tax regime in Budget 2024. In this, consideration is being given to increasing the existing tax exemption. The current tax exemption in the new tax regime is Rs 7 lakh. This can be increased to Rs 7.5 lakh. Meaning additional discount of Rs 50 thousand can be given. Earlier, the government had increased the exemption limit in the new tax regime from Rs 5 lakh to Rs 7 lakh. In this, the rebate in section 87(A) was increased from Rs 12500 to Rs 25000.
Income will be tax free up to Rs 8 lakh
Salary up to Rs 8 lakh can be tax free in the coming financial year. Tax experts believe that if such a provision is made in the budget, the exemption limit could be up to Rs 8 lakh. In the current system, there is tax exemption on income up to Rs 7.5 lakh. This also includes basic exemption, rebate and standard deduction.
Got the gift of standard deduction
In the Union Budget for the year 2023-24, Finance Minister Nirmala Sitharaman had made changes in the new tax regime. In this, the basic exemption limit was increased from Rs 2.5 lakh to Rs 3 lakh. At the same time, the limit of rebate available up to Rs 5 lakh was increased to Rs 7 lakh. Apart from this, the benefit of standard deduction was also added to it. After this, income up to Rs 7.5 lakh became tax free. There itself. An additional rebate of Rs 15,000 was given for pensioners in the new tax regime.
Will there be rapid changes in the new tax regime?
Experts believe that there will be rapid changes in the new tax regime in the coming times. The record increase in income tax returns also indicates that the government will benefit by making the new tax regime more attractive. For this, some tax exemption will have to be included in it. Let us tell you, a record 8.18 crore Income Tax Returns (ITR) were filed till December 31 for the assessment year 2023-24.
Strong surge in advance tax collection
Experts believe that the government should definitely consider increasing tax exemption. There will be many benefits from this. However, the government is emphasizing on increasing tax collection. In the financial year 2023-24, the total advance tax collection till December 15 was 19.76 percent more than the same period last year. In the current financial year till December 15, this tax collection is Rs 624329 crore which was Rs 521302 crore a year ago.
Direct tax collection is increasing
Till December 17, 2023, there has been a jump of 20.66 percent in direct tax collection as compared to the same period. Direct tax collection has been Rs 13,70,388 crore which was Rs 11,35,754 crore during the same period last year.
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