Income Tax Slab Rate: The Income Tax Act provides many concessions and exemptions along with making provision for tax on the income of the citizens. Tax payers also get a lot of relief from these concessions and exemptions. Keeping this in mind, an important decision was taken by the Modi government in the budget of 2018.
Income Tax Slab: Ever since the formation of the government in the country in the year 2014, many beneficial decisions have been taken by the Modi government for the people. Many schemes have also been launched by the government with the intention of benefiting every section of the society. In this sequence, the government has also provided a lot of facilities to the people who pay tax for the country. In this sequence, the government has also taken many welfare decisions during the budget. Out of these, today we are going to talk about an important decision taken by the Modi government in the budget during its tenure.
Income Tax
The Income Tax Act, along with making provisions for tax on the income of citizens, also provides many concessions and exemptions. Tax payers also get a lot of relief from these concessions and exemptions. Keeping this in mind, an important decision was taken by the Modi government in the budget of 2018.
Income tax return
Let us tell you that salaried individuals and pensioners can avail an exemption by default without any investment or expenditure and can get a fixed amount of concession. Actually, salaried individuals and pensioners can avail Standard Deduction while paying income tax. Standard Deduction was removed for a few years, but then the Modi government did what no one could do.
Income tax slab
Standard deduction was once again introduced in the budget of the year 2018 by the Modi government. The then Finance Minister Arun Jaitley re-announced the standard deduction in the 2018 budget. In Budget 2018, Rs 40,000 was announced as standard deduction again. Interestingly, the provision of standard deduction was available earlier. However, it was abolished in the Finance Act 2005.
Income tax exemption
The deduction provided in the form of standard deduction can be availed by all salaried employees irrespective of the requirement of any investment. At the same time, in the Interim Budget 2019, presented on February 1, 2019, before the 2019 Lok Sabha elections, an important announcement was made regarding the standard deduction.
Standard deduction
The interim budget presented on 1 February 2019 included several tax benefits for the salaried and middle class. In this budget, the exemption of Rs 10,000 was increased and the amount of standard deduction was increased from Rs 40,000 to Rs 50,000. Now, while paying income tax, salaried people get a rebate of Rs 50,000 as standard deduction. This will go a long way in helping taxpayers reduce their tax outgo.
Tax
At the same time, Budget 2020 introduced New Tax Regime in the tax system. Under the new tax regime, taxpayers have the option of paying concessional tax rates. However, major deductions and exemptions are not allowed under this new regime. If the taxpayer pays tax for filing return in the new tax regime, then standard deduction is not allowed on salary income.
