Budget 2024: Middle class to get relief in upcoming budget, tax concessions likely for incomes up to Rs 12 lakh

Budget 2024: Finance Minister Nirmala Sitharaman will present the General Budget 2024 on July 23. The middle class, in particular, has been anticipating tax relief for a long time. According to sources, this year's budget may bring relief to the middle class, with possible tax concessions for those earning up to Rs 12 lakh.

Possible Changes in Tax Slabs

Sources indicate that tax rates may be reduced for salaried individuals earning between Rs 9 lakh and Rs 12 lakh. Currently, this income bracket is taxed at 15 per cent. The government is considering lowering this rate, with an announcement expected in the budget. If this change is implemented, it will provide a significant boost to the middle class. Presently, income up to R 7.5 lakh is not taxed, and there has been a growing demand for tax relief from the middle class, which has not seen significant changes in income tax for several years. However, sources suggest that any new concessions will apply only to the new tax regime.

Increase in Standard Deduction

In addition to potential changes in tax slabs, there may be an increase in the standard deduction. Currently, taxpayers benefit from a standard deduction of up to Rs 50,000. Preparations for the budget are complete, including the traditional Halwa ceremony and printing of the budget has begun. It is worth noting that the government aims to promote the new tax regime.