Income Tax News: The countdown for the general budget to be presented on February 1 has begun. The biggest announcement in this budget can be about income tax. According to an exclusive report by CNBC Awaaz, the government can give great 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 an exclusive report by CNBC, 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.
Will the government give relief on income tax
If sources are to be believed, the government can increase the limit of income tax exemption up to Rs 50,000 in the budget. At the same time, the limit of standard deduction can be increased to Rs 1 lakh. Currently, this limit is Rs 50,000 in the old tax regime, while in the new tax regime this limit is Rs 75,000. In such a situation, the government can increase it by Rs 25,000 more. Currently, the tax rate on annual income of Rs 12 to 15 lakh is 20 percent.
Taxpayers hope for relief
Taxpayers and experts have high expectations from the budget for the financial year 2025. In fact, 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.
