Union Budget 2024 -25 – Industry analysts predict that there won’t be any major changes to income tax refunds in the upcoming interim Union Budget 2024. The interim budget is unlikely to increase the income tax rebate. Union Finance Minister Nirmala Sitharaman revealed the shift in income tax slabs and the possibility of a ₹7 lakh refund under the new income tax regime during her presentation of the Union Budget 2024. Under the New Tax Regime, which will be unveiled on February 1, there won’t be any increases in tax rebates in the Interim Budget 2024.
Union Budget 2024
When the budget is presented, people pay special attention to the announcements made regarding income taxes. Salaried people eagerly await the Finance Minister’s announcements regarding income tax rebates. It is improbable that the income tax rebate under the new direct tax regime will increase in the interim Union Budget of 2024. In light of the new personal income tax system, FM Sitharaman is probably going to raise the tax rebate.
Interim Budget 2024
Experts in the field surmise that paid people are expecting higher basic exemption limits and HRA exemptions under both the current and previous tax systems.
There were earlier rumors that taxpayers who choose the New Tax Regime would see their personal income tax rebate rise from the current Rs 7 lakh to Rs 7.5 lakh in the vote-on-account.
Features of Union Budget 2024
Following are the features of Budget 2024.
- Since the Lok Sabha elections are scheduled for early in the next year, Union Finance Minister Nirmala Sitharaman will not be making any significant announcements when she presents the Union Budget 2024 on February 1.
- Following the general elections and the establishment of the new administration, the entire budget will be revealed.
- Estimates of spending, revenue, the fiscal deficit, financial performance, and expectations for the next fiscal year of the current administration are typically included in the interim budget.
- It cannot, however, contain any significant policy declarations.
- During the presentation of the Union Budget 2023–24, Nirmala Sitaraman made five significant announcements regarding personal income tax that will help the nation’s hardworking middle class.
- The working middle class will greatly benefit from these announcements regarding rebates, a change in the tax structure, an extension of the standard deduction benefit to the new tax regime, a reduction in the highest surcharge rate, and an extension of the limit of tax exemption on leave encashment on the retirement of non-government salaried employees.
What announcement were made in Budget 2023?
Last year the finance minister made the following announcement.
- For assesses choosing the new direct tax regime, FM Nirmala Sitharaman raised the threshold for income-tax rebate from Rs 5 lakh to Rs 7 lakh last year.
- Additionally, the basic exemption amount was raised from Rs 2.5 lakh to Rs 3 lakh. Additionally, the Centre instituted a Rs. 15,000 family pension deduction.
- The standard deduction clause was implemented in Budget 2023 for salaried individuals, retirees, and family pensioners under the new tax regime.
- Pensioners and salaried workers presently receive a standard deduction of Rs 50,000 under the previous tax system.
Note: With the introduction of modified tax slabs and concessional tax rates, the New Tax Regime was implemented. All taxpayers, including individuals, Association of Persons (AOPs), and Hindu Undivided Families (HUFs), are subject to it.
The income tax slabs were lowered from seven to six in Budget 2023 in an attempt to simplify the personal income tax regulations.
- For income up to Rs 3 lakh, there is no tax.
- For income of more than Rs 3 lakh up to Rs 6 lakh, it is 5 %.
- Over Rs 6 lakh up to Rs 9 lakh, it is 10 %.
- Over Rs 9 lakh to Rs 12 lakh, it is 15 %
- Over Rs.12 lakh to Rs.15 lakh, it is 20 %.
- Above Rs 15 lakh, it is 30 per cent
It is explicitly stated by the government that people who select the New Tax Regime will not be eligible for several exemptions and deductions, such as HRA, LTA, 80C, 80D, and others, which are only available under the Old Tax Regime.