India is considering several income tax relief measures to alleviate the financial burden on middle-class taxpayers and stimulate economic growth. Here’s a concise overview of the key proposals:
- Proposed Tax Cuts for Middle-Income Earners: The government is contemplating reducing income tax rates for individuals earning up to ₹15 lakh annually in the upcoming budget. This initiative aims to support the middle class and drive consumption amid economic challenges.
- Revised Tax Slabs: Under the new income tax regime, income up to ₹3 lakh is exempt from tax. The 5% tax rate now applies to income between ₹3 lakh and ₹7 lakh, expanding the previous limit from ₹6 lakh. These adjustments are designed to provide relief to taxpayers and encourage spending.
- Increased Standard Deduction: The standard deduction for salaried employees has been increased from ₹50,000 to ₹75,000, offering additional relief to the middle class. This change is expected to enhance disposable income for salaried individuals.
These proposed measures aim to increase disposable income for taxpayers, thereby boosting consumption and contributing to economic growth. Taxpayers are encouraged to stay informed about these developments and assess how they can benefit from the anticipated provisions.