Relief for the Middle Class
- Standard Deduction Increase: The standard deduction rate has been increased from ?50,000 to ?75,000.
- Tax Rate Adjustments: The new tax regime was implemented to reduce tax rates, which are now lower than those under the old regime.
- Finance Minister's Perspective: Sitharaman emphasizes her understanding of middle-class challenges, stating, "I am also from the middle class and understand their problems."
Tax Reforms in Union Budget 2024
- New Income Tax Slabs: The revised tax slabs under the new tax regime aim to benefit individuals with taxable incomes up to ?10 lakh.Zero Tax for Income up to ?7 Lakh: Under the new regime, no tax is payable if taxable income does not exceed ?7 lakh.
- 0 - ?3,00,000: 0%
- ?3,00,001 - ?7,00,000: 5%
- ?7,00,001 - ?10,00,000: 10%
- ?10,00,001 - ?12,00,000: 15%
- ?12,00,001 - ?15,00,000: 20%
- Above ?15,00,001: 30%
- No Change in Basic Exemption Limit: The basic exemption limit remains unchanged in both the old and new tax regimes.
GST and Standardized Prices
- Pre-GST Scenario: Different states imposed their own taxes on essential items, leading to varied prices across the country.
- Post-GST Benefits: The implementation of GST has standardized the prices of essential goods nationwide, providing relief to the common people.
Job Creation and Economic Impact
- Job Creation Initiatives: There is an ongoing discussion on whether the Union Budget will boost job creation. Sitharaman has hinted at job schemes being a nudge rather than a mandate for companies.
Current Tax Slabs under New Tax Regime
- Existing Slabs:
- 0 - ?3,00,000: 0%
- ?3,00,001 - ?6,00,000: 5%
- ?6,00,001 - ?9,00,000: 10%
- ?9,00,001 - ?12,00,000: 15%
- ?12,00,001 - ?15,00,000: 20%
- Above ?15,00,001: 30%
