No Income Tax For Upto Rs 5 Lakh Earning? This Big Move Expected Under New Govt


Mohul Ghosh

Mohul Ghosh

Jun 20, 2024


Finance Minister Nirmala Sitharaman is considering raising the income limit for tax levy to ₹5 lakh from the current ₹3 lakh in the upcoming Budget 2024. This move aims to stimulate consumption among low-income individuals by implementing tax cuts, as reported by Moneycontrol. By increasing the threshold, the government aims to bolster disposable income, thereby boosting economic growth through increased spending.

No Income Tax For Upto Rs 5 Lakh Earning? This Big Move Expected Under New Govt

Focus on New Tax Regime

The proposed changes will apply exclusively to taxpayers opting for the New Tax Regime introduced in Budget 2020, which became the default tax system in Union Budget 2023. This regime offers lower tax rates but eliminates most deductions and exemptions, making it more attractive for taxpayers seeking simplicity and lower tax liability.

Potential Reduction in Tax Slab Rates

In addition to raising the income threshold, the Modi 3.0 government is contemplating reducing the highest individual income tax slab rate under the new tax regime from 30% to 25%. This adjustment responds to industry demands and aims to further incentivize taxpayers to adopt the new tax structure. Notably, adjustments to higher income tax slabs are unlikely at this stage, as the government prioritizes boosting consumption among lower-income groups.

Strategic Delay in Tax Bracket Increases

Furthermore, the government may postpone hikes in the highest tax bracket (currently at 30% for incomes exceeding ₹10 lakh). This strategic move is intended to encourage taxpayers to transition to the new tax regime, which offers reduced rates and simplified tax filings without extensive deductions.

Conclusion

The proposed tax reforms in Budget 2024 underscore the government’s commitment to enhancing disposable income for lower-income individuals and stimulating economic activity through increased consumption. By revising tax thresholds and rates under the New Tax Regime, the government aims to create a more favorable tax environment while maintaining fiscal prudence.



Mohul Ghosh
Mohul Ghosh
  • 1089 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online