Individuals with an annual income of Rs 5 lakh to Rs 15 lakh can benefit from the tax exemption. Currently, these people are facing a tax rate of 5 to 20 percent.
Finance Minister Nirmala Sitharaman may make a big announcement regarding tax exemption in Budget 2024-25. A Bloomberg report has claimed that income tax exemption can be given in this budget. This move will benefit individuals with annual income of Rs 5 lakh to Rs 15 lakh. Currently these people are facing a tax rate of 5 to 20 percent.
The report further states that the Center is considering a new tax bracket. However, it is being discussed in detail and the final decision will be taken during the presentation of the budget. It has also been told that despite the possible revenue loss from these tax changes, the government is committed to maintaining its fiscal deficit target of 5.1% of GDP for the current financial year.
The amount of PM Kisan Yojana can also be increased
The report also claims that the government is considering increasing the incentive amount given to farmers under the PM Kisan Yojana. The amount of Rs 6000 per year can be increased to Rs 8,000. At the same time, the payment under the Minimum Guarantee Scheme can be increased and financial assistance for women farmers can be expanded. Currently, the government gives an amount of Rs 6000 annually i.e. Rs 2000 every four months under the Pradhan Mantri Kisan Samman Nidhi Yojana.
When can the budget be presented?
According to Business Today, Finance Minister Nirmala Sitharaman is holding pre-budget consultations with economists, trade unions and industry chambers, among others. Local media suggest that the budget may be announced on July 22. In pre-budget discussions with the Revenue Secretary, industry organizations such as CII have suggested introducing a slight relief in income at the lower level with taxable income up to Rs 20 lakh.
These taxpayers may also get exemption
The biggest concern for personal taxpayers has been the increase in tax collection from them, which has actually exceeded the tax collection from corporate income in recent years. In the financial year 2023-24, net corporate tax collection was Rs 9.11 lakh crore, while net personal tax collection was Rs 10.44 lakh crore. Similarly, in 2022-23, corporate tax collection was Rs 8,25,834 crore and personal tax collection was Rs 8,33,307 crore. In such a situation, it is expected that exemption can be announced regarding this too.
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