In her latest budget announcement, Nirmala Sitharaman has promised major tax reforms with the aim of providing relief to salaried individuals and pensioners. Key changes include an increased standard deduction, revised tax slabs, and the abolition of the controversial angel tax. These changes are expected to positively impact millions of taxpayers and make the tax process easier. Stay tuned for more updates on this developing story.
Budget 2024: Major Tax Reforms on the Horizon
The Indian government, led by Finance Minister Nirmala Sitharaman, has unveiled its budget proposals for 2024, which include sweeping tax reforms aimed at providing relief to salaried individuals and pensioners.
Background
India's tax system has been a subject of debate for many years, with taxpayers often expressing concerns about high tax rates and complex compliance procedures. The government has recognized the need for reforms to simplify the tax system, reduce the tax burden, and promote economic growth.
Key Changes
The proposed tax reforms announced in the 2024 budget include the following measures:
Increased Standard Deduction: The standard deduction for salaried individuals has been raised to Rs. 50,000 from the current Rs. 25,000. This means that more income will be exempt from taxation, leading to reduced tax liability.
Revised Tax Slabs: The tax slabs have been revised to provide tax relief to individuals in lower income brackets. The new slabs are as follows:
Abolition of Angel Tax: The controversial angel tax, which applied to funding received by startups from investors, has been abolished. This move is expected to boost the startup ecosystem and promote innovation.
Impact
The proposed tax reforms are expected to have a positive impact on millions of taxpayers, particularly salaried individuals and pensioners. The increased standard deduction and revised tax slabs will reduce their tax burden, providing financial relief. The abolition of the angel tax will also encourage investment in startups and drive economic growth.
Top 5 FAQs
1. What is the standard deduction for the 2024-25 financial year? Answer: Rs. 50,000
2. In which tax slab will individuals with a taxable income of Rs. 8 lakhs fall under? Answer: 25%
3. Has the angel tax been completely abolished? Answer: Yes
4. How will the tax reforms benefit pensioners? Answer: They will also benefit from the increased standard deduction and revised tax slabs.
5. When will the tax reforms come into effect? Answer: They are expected to come into effect from April 1, 2024.
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