Income Tax: No tax on taxable income of 12.75 lakhs with standard deduction; Announcement for salaried people
New Delhi| Finance Minister Nirmala Sitharaman has given big relief to the middle class. Now income up to Rs 12 lakh will be outside the scope of income tax. The Finance Minister said in the budget on direct taxes that the spirit of justice will be given prominence in the new Income Tax Bill.
The Finance Minister said that income up to Rs 12 lakh will no longer attract any income tax. 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 a chance to give up more money, increase household consumption, savings and investment.
The Finance Minister has announced that income tax slabs and rates are being changed to benefit all taxpayers. The Finance Minister has said that under the new tax regime there will be zero income tax up to an income of 12 lakhs. The middle class has received special attention from the government and has reformed the personal income tax system.
He said that changes will be made in the limit of TDS so that uniformity can be brought in it. The exemption limit in TDS for senior citizens will be increased from Rs 50 thousand to Rs 1 lakh. The exemption limit in TDS on rent income will be increased to Rs 6 lakh. According to the Finance Minister, provisions for higher TDS will remain applicable in non-PAN cases. The limit for filing updated returns has been increased from two years to four years.
According to the Finance Minister’s Budget 2024, earlier the annual income of a taxpayer was Rs 7 lakh 75 thousand and after deducting Rs 75,000 from the standard deduction, his income became Rs 7 lakh annually. In such a situation he did not have to pay any tax. This means if a person’s monthly salary was around Rs 64000 or Rs 64500 then his income was tax free under the new tax system.
