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Income Tax Slab: The country’s fiscal budget is presented in February with the beginning of the new year. Every year in this budget, the working class of the country demands relief in income tax. Last year also people had demanded change in the tax slab from the Finance Minister. But this time a big announcement is expected from the government regarding tax rules.
Middle class can get big relief
It is being claimed in media reports that the government is considering giving big tax relief to the middle class. The plan is to provide this relief to those people whose annual income is up to Rs 15 lakh. The government may announce relief to taxpayers in the budget to be presented on 1 February 2025. The decision to give major relief in income tax is a plan to boost the economy and encourage people to spend more. If the government takes this step then it will be easier to deal with inflation in future.
There have been complaints regarding tax for a long time
People living in the city have been complaining about rising costs and high taxes for a long time. In such a situation, this change is expected to be made by the government. According to the new tax system implemented in the year 2020, if a person’s annual income is between Rs 3 to 15 lakh, then he will have to pay tax ranging from 5 percent to 20 percent. If the annual income is more than Rs 15 lakh then the income tax increases to 30 percent.
Taxpayers currently have two options
At present, taxpayers in the country have two types of options. You can choose any one of these according to your income. First, the old tax system, in which you can get relief in some expenses like house rent and insurance etc. Another rule is the new tax regime under which tax rates are lower, but most exemptions have been eliminated.
No clarification from Finance Ministry
If the government decides to relax income tax, it is expected that most people may opt for the new tax regime implemented in 2020. It has become clear from the reports that the government led by Prime Minister Narendra Modi has not yet decided how much tax relief will be given. There has been no comment on this yet from the Finance Ministry or Finance Minister Nirmala Sitharaman.
Concerns increased regarding the country’s economy
Changes in the country’s tax system are being seen as increasing concerns about the economy. GDP growth in the September quarter of 2024 has been lower than in the previous seven quarters. Apart from this, prices of food items are also increasing. Due to which the burden on people’s pockets has increased. Sales of cars, household goods and personal use items are also declining. The government wants to encourage people to spend more by giving tax breaks.