Income Tax Limit: Last year, Finance Minister Nirmala Sitharaman had increased the income tax rebate limit for taxpayers from Rs 5 lakh to Rs 7 lakh under the new tax regime.
Union Budget 2024: Finance Minister Nirmala Sitharaman is going to present the budget for the sixth consecutive time on 1 February. Due to it being the election year of Lok Sabha, an interim budget will be presented this year. A senior officer of the Income Tax Department said that there will be no increase in tax exemption under the new tax regime in the interim budget 2024. Announcements regarding the budget will be made on 1 February. Earlier, it was being said in some media reports that for taxpayers in the new tax regime, the limit of personal income tax rebate in vote-on-account can be increased from the current Rs 7 lakh to Rs 7.5 lakh.
No rebate plan in income tax exemption
An Income Tax Department official told Moneycontrol on the condition of anonymity that there is no plan to give rebate in income tax exemption. Last year, Finance Minister Nirmala Sitharaman had increased the income tax rebate limit for taxpayers from Rs 5 lakh to Rs 7 lakh under the new tax regime. The basic exemption limit was increased to Rs 3 lakh from the earlier Rs 2.5 lakh. The central government also started a deduction of Rs 15,000 for family pension.
Benefit of standard deduction of Rs 50000
In the budget of 2023, standard deduction was introduced under the new tax regime for the salaried class, pensioners and family pensioners. In the old tax regime, salaried class and pensioners are also given the benefit of standard deduction of Rs 50,000. Another official said that it is also expected that in the interim budget, the Center may announce TDS exemption on foreign credit and debit card spends up to Rs 7 lakh every financial year.
The new tax regime was introduced with a concessional rate by changing the tax slab as compared to earlier. It was applicable to all taxpayers including Hindu Undivided Families (HUF) and Union of Persons (NOP). In Budget 2023, personal income tax rules were simplified and income tax slabs were reduced from 7 to six. Let us know about the income tax levied under the new tax regime-
> There will be no tax on income up to Rs 3 lakh.
> 5% tax up to income of more than Rs 3 lakh – Rs 6 lakh.
> Above Rs 6 lakh and up to Rs 9 lakh it is 10 percent.
> From Rs 9 lakh to more than Rs 12 lakh, this tax is 15 percent.
> 20 percent tax on income between Rs 12 lakh to Rs 15 lakh.
> 30 percent tax on annual income above Rs 15 lakh
It has been made clear by the government that those who choose the new tax regime. They will not be able to avail various types of exemptions and deductions including HRA, LTA, 80C, 80D. Currently, different types of exemptions are available under the old tax regime.
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