Every year, India’s salaried class eagerly awaits relief in income tax, hoping for some relaxation in the financial burden. According to a Reuters report, the government is actively considering tax relief for middle class who are are particularly earning up to Rs 15 lakh annually.
As per the Reuters report, the government may announce tax relief for taxpayers in the budget to be presented on February 1, 2025. The decision to provide significant relief in income tax aims to boost the economy and encourage people to spend more. If the government takes this step, it could also make tackling inflation easier in the future.
People living in cities have long expressed concerns about rising expenses and high taxes. This is why many are hopeful that the government might bring about some changes. Under the new tax regime introduced in 2020, individuals with an annual income between Rs 3 lakh and Rs 15 lakh are taxed at rates ranging from 5 per cent to 20 per cent. For those earning over Rs 15 lakh annually, the income tax rate increases to 30 per cent.
Currently, taxpayers in the country have two options to choose from, depending on their income. The first is the Old Tax Regime, where you can avail exemptions for expenses like house rent and insurance. The second option is the New Tax Regime, which offers lower tax rates but eliminates most of the exemptions. You can select the option that best suits your financial situation.
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