Budget 2024 brings major income tax changes! Discover the revised tax structure, its impact on the middle class, and if the new tax regime with its simpler filing process is the right choice for you.
> Govt proposes ₹1.48 lakh crore for education, employment and skilling
> Sitharaman announces big bonanza for Bihar, Andhra Pradesh
The Union government has proposed ₹26,000 crore for various road projects in Bihar, Sitharaman said in Lok Sabha.
“On the Amritsar-Kolkata industrial corridor, we will support the development of an industrial node at Gaya in Bihar. We will also support the development of road connectivity projects- Patna -Purnea expressway, Buxar- Bhagalpur highway, Bodhgaya- Rajgir-Vaishali- Darbhanga and an additional two-lane bridge over river Ganga in Buxar for ₹26,000 crores.”
> Centre to facilitate special financial support for Andhra Pradesh
“Recognising the state’s need for capital, we will facilitate special financial support through multilateral agencies. In the current FY, ₹15,000 crore will be arranged with additional amounts in future years,” Finance Minister Nirmala Sitharaman says.
> Sitharaman proposes ₹11,500 crore for Bihar flood control
Union finance minister announces ₹11,500 crore for Bihar for flood control measures.
> Street food hub to be set up in select cities
Sitharaman proposed setting up of street food hub in select cities.
> Cities as growth hubs
Sitharaman unveiled a series of initiatives to transform cities into dynamic growth hubs. These measures focus on the orderly development of peri-urban areas, creative redevelopment of brownfields, and a robust push for infrastructure improvements. 14 large cities with populations exceeding 30 lakh will develop Transit Oriented Development (TOD) plans.
> Proposal for customs duty
Sitharaman proposes to reduce basic customs duty on mobile phones and chargers to 15%.
> Exemption limit for capital gains tax on certain assets to be increased
Sitharaman proposes to increase exemption on capital gains tax for certain assets to ₹1.5 lakh.
> Govt proposes to abolish ‘angel tax’ for all classes of investors
Sitharaman proposed abolishing the angel tax for all classes of investors. “Angel tax” is a term used to describe a tax levied on the investment received by startups from angel investors.
> Govt announces increase in standard deduction
Sitharaman announces increase in standard deduction to ₹75,000 under the new tax regime.
> No tax relief under old regime
While Sitharaman proposed an increase in standard deduction by ₹25,000 and a change in tax structure under the new regime, those filing returns under the old regime did not get any relief.
> Govt revises tax structure under new regime
- ₹0- ₹3 lakh – Nil;
- ₹3-7 lakh – 5% ;
- ₹7-10 lakh – 10% ;
- ₹10-12 lakh – 15%;
- 12-15 lakh – 20%; and
- Above ₹15 lakh – 30%
Sitharaman said that the tax payers would save up to ₹17,500 in tax with the revised structure.
