Finance Minister Nirmala Sitharaman has given a big relief to the middle class. Now income up to Rs 12 lakh will be out of the scope of income tax. Know about the Finance Minister’s announcements on income tax here.
Finance Minister Nirmala Sitharaman has given a big relief to the middle class. Now income up to Rs 12 lakh will be out of the scope of income tax. The Finance Minister said in the budget on direct tax that the spirit of justice will be given priority in the new Income Tax Bill.
Up to how much taxable income will we not have to pay tax now?
The Finance Minister said that there will be no income tax on income up to Rs 12 lakh. When standard deduction is also added to this, there will be no tax on taxable income of Rs 12.75 lakh for salaried people. The Finance Minister has said that this decision will help in reducing taxes on the middle class to a great extent. They will have the opportunity to leave more money, increase domestic consumption, savings and investment.
| Annual Income | Tax rate |
| Rs 0-4 lakh | NIL |
| Rs 4-8 lakh | 5 per cent |
| Rs 8-12 lakh | 10 per cent |
| Rs 12-16 lakh | 15 per cent |
| Rs 16-20 lakh | 20 per cent |
| Rs 20-24 lakh | 25 per cent |
| Above Rs 24 lakh | 30 percent |
The Finance Minister has announced that changes are being made in the income tax slabs and rates to benefit all taxpayers. The Finance Minister has said that under the new tax system, there will be zero income tax up to an income of Rs 12 lakh. The government has paid special attention to the middle class and has improved the personal income tax system.
What did the Finance Minister announce on TDS?
The Finance Minister has said in his budget speech that changes will be made in the TDS limit to bring uniformity in it. The TDS exemption limit for senior citizens will be increased from Rs 50 thousand to Rs 1 lakh. The TDS exemption limit on rental income will be increased to Rs 6 lakh. According to the Finance Minister, the provisions of higher TDS will remain applicable in non-PAN cases. The limit for filing updated returns has been increased from two years to four years.
What is the benefit to the elderly in case of TDS?
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What did you find?
Tax exemption on interest
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Who got it?
to senior citizens
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How much benefit?
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Earlier, senior citizens were not required to pay TDS on interest income up to Rs 50,000.
- Now TDS will not be levied on interest up to Rs 1 lakh.
What are the updates related to TDS on rent
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What did you find?
- Earlier, TDS was not levied on rent income up to Rs 2.4 lakh.
- Now TDS will not be levied on income up to Rs 6 lakh from rent.
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Who benefits?
Small taxpayers who receive rental income in small amounts.
How much income was tax free before the budget?
According to the Finance Minister’s Budget 2024, earlier if the annual income of a taxpayer was Rs 7 lakh 75 thousand, then after deducting the standard deduction of Rs 75,000, his income became Rs 7 lakh annually. In such a situation, he did not have to pay any tax. This means that if a person’s monthly salary was around Rs 64000 or Rs 64500, then his income was tax free under the new tax system.
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