Income Tax Standard Deducation: In the current financial year, the standard deduction under the new tax regime is Rs 75000. But now the middle class can be given relief regarding this in the budget to be presented in February.
Budget 2025: Finance Minister Nirmala Sitharaman gave a big relief to the middle class in the budget for the financial year 2024-25 presented on 23 July 2024. At that time, the limit of standard deduction was increased from Rs 50000 to Rs 75000 by the government. The government had given this relief in the form of standard deduction in the New Tax Regime. However, the salaried class has been demanding relief in the Old Tax Regime for a long time. The process of preparations has started from the Finance Ministry for the budget for the financial year 2025. Recently, the Finance Minister had a meeting with the officials regarding the preparations.
What will be special for the middle class in the budget?
The budget for the financial year 2025 will be presented this time on February 1, 2025. This will be the eighth budget to be presented by Finance Minister Nirmala Sitharaman. What will be special for the middle class in this budget? There is a discussion going on in the Finance Ministry regarding this. In the news published in Dainik Jagran, citing sources, it has been claimed that in the budget to be presented in February next year, the middle class can again be given relief in income tax by the government. Let us tell you that in the middle class, the number of salaried class who pay Income Tax is the highest.
Consideration is being made to increase the limit of standard deduction
The news published in the newspaper claims that this time, to give relief to the salaried class, the Finance Ministry is considering increasing the limit of standard deduction under the New Tax Regime of Income Tax. In the current financial year, under the New Tax Regime, the salaried class gets the benefit of standard deduction of Rs 75,000. Apart from this, those earning up to Rs 7 lakh annually do not have to pay any tax under the New Tax Regime.
There will be no relief in the old regime!
Sources claim that in the budget to be presented on February 1, 2025, the amount of standard deduction for the salaried class can be increased from Rs 75,000 to Rs 1 lakh. Sources also claimed that the government will give any kind of relief in income tax only under the new tax regime. Actually, it is being promoted by the government and the Old Tax Regime is being discouraged. This has been indicated by the Finance Ministry on many occasions before.
Out of the eight crore income tax returns filed in the financial year 2023-24, the number of ITRs of those earning 5 to 10 lakh annually was 2.79 crore. Apart from this, those earning Rs 10-20 lakh filed 89 lakh ITRs. This simply means that if the government decides to give relief in income tax, then the relief will be given keeping in mind about three crore taxpayers.
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