During her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman announced that no income tax will be payable on income up to Rs 12 lakh, providing significant relief to taxpayers, especially the middle class. However, this exemption only applies if a taxpayer takes relief under various sections of the income tax act. No major announcements were made for the railway sector, as the budget focuses more on increasing allocations for railways over highways.
In her eighth consecutive Union Budget, Finance Minister Nirmala Sitharaman has announced a major relief for the middle class in India. People with an annual income of up to Rs 12 lakh will not have to pay any income tax, owing to a tax rebate and the availability of a standard deduction of Rs 75,000 under the new tax regime. However, tax experts state that individuals with zero tax liability are still required to file an income tax return, leading to a cleaner financial record.
With the announcement of the new tax regime, Finance Minister Nirmala Sitharaman has announced significant changes to the slabs and rates to benefit all taxpayers. Under the new system, taxpayers with normal income up to Rs 12 Lakhs will not have to pay any taxes, and those with income up to Rs 4 Lakhs will be exempted. The time limit for filing returns has also been extended to 4 years.
In her record eighth consecutive budget, finance minister Nirmala Sitharaman announced that individuals with an income up to Rs 12 lakh will not have to pay income tax. This move will save citizens Rs 1 lakh crore in direct taxes and Rs 2,600 crore in indirect taxes. The income tax exemption limit has seen a steady increase since 2005, with this latest increase being a major relief for the middle class. Before presenting the budget, Sitharaman met with President Droupadi Murmu as per traditional practice.
The Board of Control for Cricket in India (BCCI) has won a significant victory in the tax battle with the Income Tax department as the Income Tax Appellate Tribunal (ITAT) has ruled that the board is entitled for tax exemption for the income generated from the Indian Premier League (IPL). The ITAT further stated that the main objective of BCCI remains to promote cricket and the IPL is just a means to achieve this. This ruling is a major relief for the board as it can now focus on promoting the game without any hindrances.
The clock is ticking for taxpayers as the July 31, 2024 deadline for filing income tax returns (ITR) for the financial year 2023-24 looms nearer. Filing your ITR on time is crucial to avoid hefty penalties, and there is no indication that the date will be extended. Stay in compliance and prevent financial losses by submitting your ITR before the deadline.
BJP leader and campaign in-charge for Maharashtra, Dinesh Sharma, took a dig at Congress and accused them of conspiring to steal the wealth of the common people and distribute it among a certain class. He referenced a remark by Congress's overseas president Sam Pitroda on inheritance tax and criticized the party for wanting to carry out an economic survey. He also accused Congress of having no respect for the Constitution. Prime Minister Narendra Modi had also used Pitroda's statement to attack Congress and their alleged plans of "wealth redistribution". However, the Congress has distanced itself from Pitroda's comments and denied any plans of introducing an inheritance tax.
The topic of inheritance or estate tax has once again become a hotly debated issue in India due to Congress party's poll promise related to "wealth redistribution" and Indian Overseas Congress chairman Sam Pitroda's comments on the same. In this edition of DH Deciphers, the concept of inheritance tax is decoded, including its history, proposals, and implementation in India and other countries. Currently, there is no inheritance tax in India, but inherited assets may be subject to income tax.
Finance Minister Nirmala Sitharaman presented the Interim Budget for FY24 today, announcing a revised total expenditure of ₹44.90-lakh crore and a fiscal deficit pegged at 5.8% of GDP. No changes were made to income tax slabs, but there were announcements regarding tax benefits for startups and investments, as well as tax exemptions for certain income of IFSC units. Other highlights include reduced corporate tax rates and improved taxpayer services.
Union Finance Minister Nirmala Sitharaman has presented the interim Union Budget for 2024, the last budget before Lok Sabha elections. Notably, there have been no changes made to the tax slabs. Additionally, the target for fiscal deficit in the 2024-2025 financial year has been set at 5.1% of the GDP.