Unlock Financial Freedom: Discover Major Changes in Income Tax Day 2024 – From Standard Deduction to Revamped Tax Regime in the Union Budget
Income Tax Day 2024, commemorated annually on July 24, celebrates the historic introduction of income tax in India by Sir James Wilson in 1860. This year’s observance is notable due to the significant changes announced in the Union Budget 2024 by Finance Minister Nirmala Sitharaman.
Key changes include an increase in the standard deduction for salaried employees under the new tax regime, rising from ₹50,000 to ₹75,000. Family pensioners will also benefit from an increased deduction, which has been raised from ₹15,000 to ₹25,000.
Moreover, the re-assessment of old Income Tax Returns (ITR) has been restricted. Only taxpayers with an annual income exceeding ₹50 lakh can now face a re-evaluation of their old ITRs after three years; others are protected from such reviews beyond a specified period.
The revised tax regime, which is set to benefit salaried employees up to ₹17,500 in income tax, also introduces a new structure of tax slabs. Income up to ₹3 lakh will be exempt, while a 5% tax will apply to income between ₹3-7 lakh, 10% for ₹7-10 lakh, and 15% for ₹10-12 lakh. Income between ₹12-15 lakh will attract a 20% tax rate, and a 30% tax will be levied on income above ₹15 lakh. These changes will take effect from April 1, 2025 (Assessment Year 2025-26).
These announcements follow a year where over two-thirds of individual taxpayers chose the new tax regime, with more than 8.61 crore IT returns filed in FY 24.
Stay updated for more insights and detailed impacts on these changes as we approach the implementation date.
Original Story https://www.livemint.com/news/trends/income-tax-day-2024-from-standard-deduction-to-revised-income-tax-regime-whats-in-union-budget-for-taxpayers-11721786729022.html
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