Budget 2024: In the next budget, the government may reduce the personal tax rate, who will get relief?

Budget 2024: The Indian government is looking to reduce personal tax rates for certain categories of individuals in the upcoming Budget 2024, which could help boost consumption in Asia's third-largest economy.

According to a Reuters report, this plan may be announced in the budget to be presented in July. Post-poll surveys revealed that voters were worried about inflation, unemployment and declining incomes. On the other hand, the Indian economy grew at 8.2 percent in 2023-24 and consumption grew at half the pace.

While claiming to form the NDA government, Prime Minister Modi had said that his government would focus on increasing the savings of the middle class and improving their quality of life. Sources said the cut in personal taxes could boost consumption in the economy and boost savings for the middle class.

Who can get tax relief?

The report quoted sources as saying that the individuals who could get the tax break include those with an annual income of more than Rs 15 lakh, though the exact amount is yet to be determined. These changes can be made in the tax scheme introduced in 2020, which levies 5%-20% tax on annual income up to Rs 15 lakh, while income above Rs 15 lakh is taxed at 30%.

According to sources, when a person's income increases five times from Rs 3 lakh to Rs 15 lakh, the personal tax rate increases six times, which is much higher. Govt Rs. It may also consider lowering personal tax rates for annual income of 10 lakh, the report added, adding that income under the old tax system would be taxed at the highest rate of 30 percent. A new limit is being discussed.

Those earning more than 15 lakhs annually will get relief!

Individuals whose annual income is more than Rs 15 lakh can get relief in income tax. It is also being said that the government may also consider lowering the income tax slab for an annual income of Rs 10 lakh. The government is discussing a new threshold for income that would be taxed at the highest rate of 30 percent under the old tax system.