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Budget expectations: There is a new government, there will be a new budget, there is a new hope. People have got new hopes after PM Modi took oath for the third consecutive time. But there is one hope which has been awaited for the last 10 years. That is the reduction in tax for the salaried class in the budget. What is new this time? The finance minister is sharp, the planning will also be the same, there will also be a focus on growth. However, this is not a government with full majority. So there can be something different and special in this budget. Hopefully, there will be different discussions. When the finance minister presents the budget, the reality will come out. Recently sources are telling that a reduction in the income tax rate is being considered.
Will the Finance Minister introduce a new income tax slab?
According to news agency Reuters, two government sources said that the government may give some relaxation in tax rates to promote consumption. In July, Finance Minister Nirmala Sitharaman will present the first full budget of the third term of the Modi government. She will also face a challenge. The way the results of the Lok Sabha elections have come, there will be an attempt to please the middle class. There is talk that a new tax slab may be announced in Budget 2024. The advantage of this will be that the reduction in personal taxes will increase consumption in the economy and the middle class will get a chance to increase savings.
Who will be happy?
Now the question is who will be happy with these budget announcements? Which class will the Finance Minister attract? According to sources, a plan is being made to please the group with income above Rs 15 lakh. Tax exemption or other benefits can be provided in this income group. So the income tax slab of people with income up to Rs 10 lakh can be reduced. The government is considering eliminating the highest rate of 30 percent in the old tax system and setting a new limit. India's GDP is expected to grow at a strong rate of 8.2 percent in the financial year 2023-24, while consumption has grown at half the rate. In such a situation, it is expected that this can be done to increase consumption.
What will change in the tax scheme?
The results of the Lok Sabha elections have surprised everyone. A survey conducted after the results has shown that the voters of the country are very worried about inflation, unemployment and declining income. There is a discussion that the government's focus may be on changes in the tax scheme. It includes tax from 5 percent to 20 percent on income up to Rs 15 lakh and 30 percent tax on income above Rs 15 lakh. The Prime Minister himself has claimed that his government is working towards increasing the savings of the middle class. There is a logic behind this. In the last few years, the income of an individual taxpayer has increased from Rs 3 lakh to Rs 15 lakh, which is five times, while the income tax rate has increased six times during this period, which is very high.