Income Tax News: The Modi government may provide a large gift in the budget to persons earning up to Rs 10 lakh per year. Nirmala Sitharaman will give the final budget of the Modi government’s second term because Lok Sabha elections will be held across the country after that.
Targeting the Vote Bank
In such a case, the administration can concentrate on increasing its vote bank, particularly among the salaried and middle classes. The greatest source of stress for the salaried class is the need to save money on taxes. This time, it will be interesting to watch if the government raises the tax-free income cap for persons earning Rs 10 lakh per year in the budget.
Budget Relief for Employees
In the budget, the Government of India would provide relief to employed people. Prime Minister Narendra Modi‘s current government will release its final budget on February 1, 2024. The question is whether the government will make significant announcements on the salary class in the interim budget, which will be presented on February 1, 2024. Finance Minister Nirmala Sitharaman, on the other hand, has stated that no major announcements will be made in the budget, but it remains to be seen whether the government will provide relief to small taxpayers.
Applicable to Annual Incomes Up to Rs 7 Lakh
Tax breaks are currently available for taxpayers with annual incomes up to Rs 7 lakh. Previously, in the 2019 interim budget, Piyush Goyal promised tax breaks for those with yearly incomes up to Rs 5 lakh. Even on an annual income of Rs 6.5 lakh, tax liability was lowered to nil by taking full use of deductions and exclusions. He also declared a 25% increase in the standard limit. The standard deduction was raised from 40,000 to 50,000 rupees.
Ordinary Workers Awaiting Limit Increase
Ordinary workers anticipate an increase in this budget limit. Salary Class anticipates that this maximum would be increased in the budget from Rs 7 lakh to Rs 10 lakh. As a result, no tax will be due on annual income up to Rs 10 lakh. If this occurs, ordinary working people would receive significant tax relief and will be able to save more.
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