Significant Income Tax Relief in Budget 2024-25

A Transformational Step for payers

The Budget for 2024-25 brought considerable cheer for taxpayers through the launch of significant relief measures on income tax under a new tax structure. These are reforms aimed to make the regime more palatable, a strategic repositioning of India’s taxation strategy.

New Tax Structure: The budget announced new slabs of income tax that present better relief at different levels of income:

• ₹3,00,000: No tax
• ₹3,00,001 to ₹7,00,000: 5%
• ₹7,00,001 to ₹10,00,000: 10%
• ₹10,00,001 to ₹12,00,000: 15%
• ₹12,00,001 to ₹15,00,000: 20%
• Above ₹15,00,000: 30%

Further, the standard deduction of the salaried was increased from ₹50,000 to ₹75,000, thereby increasing the disposable income.

Impact on Taxpayers

Such steps are largely the result of rationalizing the structure of taxation along with making the new scheme more attractive. Having a very effective zero taxation up to income ₹3,00,000 and only 5% above that up to ₹7,00,000, the burden of financial taxation from the state upon middle income families has already been partly taken away.

There is also the matter of enhancing standard deduction-the relief is there for salaried people, and pensioners will save much more.

Increasing Consumer Spending and Economic Growth

Again, attention of the citizens will also be directed by the government at this new structure of tax in order to improve consumer spending so that it helps compliance become effortless. These steps fall in alignment with a higher purpose of providing more economic development and enhanced monetary security to its citizens.

The Budget 2024-25 brings significant changes in view of the intent of the government to ensure proper balance between financial prudence and taxpayer-friendly initiative. The development of the nation toward economic rebirth will most likely depend significantly on these alterations to ensure sustainable growth with lower tax burden to its citizens.