Income Tax Slab: Big news! Government may cut income tax rates and standard deduction limit increase in budget, know update

Income Tax Slab: According to CNBC’s exclusive report, the government can take special steps in this budget to increase consumption. These include the option of cutting income tax rates and increasing the limit of standard deduction.

Income Tax Slab:  The countdown for the general budget to be presented on February 1 has started. The biggest announcement in this budget can be about income tax. According to CNBC Awaaz’s exclusive report, the government can give big relief to the people by making some cuts on the income tax front. Actually, the government can take steps to cut income tax rates due to concerns related to the decrease in consumption in the economy. According to CNBC’s exclusive report, sources said that the government can take special steps in this budget to increase consumption. These include the option of cutting income tax rates and increasing the limit of standard deduction.

What relief will the government give on income tax

If sources are to be believed, the government can increase the limit of income tax exemption up to 50,000 in the budget. At the same time, the limit of standard deduction can be increased to Rs 1 lakh. At present, this limit is 50,000 in the old tax regime, while in the new tax regime this limit is Rs 75000. In such a situation, the government can increase it by Rs 25000 more. Currently, the tax rate on annual income of Rs 12 to 15 lakh is 20 percent.

Taxpayers expect relief

Taxpayers and experts have high hopes for the budget for the financial year 2025. Actually, this time the government is expected to take several important steps to amend the income tax slab, increase the investment limit and encourage startups. Especially, amid rising inflation and expenses, the demand to make tax rules more simple and flexible to provide relief to the middle class and senior citizens is gaining momentum.

As per the current tax slab, there is no tax on annual income up to ₹2.50 lakh, while 5% tax is levied on income from ₹2.5 lakh to ₹5 lakh, 20% tax is levied on income from ₹5 lakh to ₹10 lakh, and 30% tax is levied on income above ₹10 lakh.

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