Economic survey has revealed that there has been an increase in direct tax collection. As a result, the gross tax revenue has also increased. So it can be expected that the government may give some additional exemptions to salaried people in the budget.
Income Tax: On Monday, 22 July 2024, the country’s economic survey was presented. In the survey released by the government, many things have come out, which are indicating a good future. If we look at the figures, it is known that there has been an increase in direct tax collection. The result is that the gross tax revenue has also increased. This also gives an indication that the government can make some good announcement for the people who get salary.
For the last several years, every year it is expected from the government that more money will be given in the hands of the taxpayers, but this did not happen. This time also people are hoping that the government may be kind to the employed people.
The Economic Survey says that a significant increase in direct taxes is expected in 2023-24. Direct taxes are estimated to grow by 15.8% in FY 2024. This growth contributes significantly to the Gross Tax Revenue (GTR) and reflects the government’s strong collection system. This increase in direct taxes is a positive sign for economic stability and growth.
Tax exemption under Section 80G
The government has extended the tax exemption under Section 80G of the Income Tax Act 1961 to contributions made through Zero Coupon, Zero Principal (ZCZP). The move is aimed at encouraging funding of social sector projects. The tax exemption on contributions made through Social Stock Exchange (SSE) is an important step to promote investment in the social sector.
Health Insurance Taxation
The previously available tax exemption under Section 10(10) of the Income Tax Act has been revised. Now the income received from life insurance policies with annual premium more than ₹ 5 lakh has been brought under the purview of taxation. This rule has been implemented with the aim of regulating taxation on high-value insurance policies. The aim of this amendment is to promote transparency and tax collection in the insurance sector.
Various aspects of income tax have been discussed under the Economic Survey 2023-24. These include the efficiency of tax collection, increase in direct taxes and specific exemptions. These policies of the government reflect the steps taken to strengthen tax collection, encourage contributions to the social sector and regulate high-value insurance policies. These policies will promote economic growth and stability and encourage investment in the social sector.
