Government Eases Income Tax Burden for Middle Class in New Budget

Finance Minister Nirmala Sitharaman announced various measures in the 2024 Union Budget to alleviate the tax burden on the middle class, including revised income tax slabs and increased standard deductions. The changes aim to simplify taxation and support salaried employees, pensioners, and startups.

Finance Minister Nirmala Sitharaman has unveiled a series of measures aimed at providing tax relief to the middle class in the 2024 Union Budget, including a significant liberalization of personal income tax slabs.

During a debate on the Finance Bill in the Lok Sabha, Sitharaman highlighted that the BJP-led government has revised tax slabs in the new tax-filing regime, emphasizing efforts to simplify taxation and reduce the burden on taxpayers.

She noted the government resisted imposing additional taxes during the Covid-19 pandemic and proposed a hike in the standard deduction for salaried employees from Rs 50,000 to Rs 75,000, providing an effective relief of up to Rs 17,500.

The minister also proposed raising the exemption limit on capital gains from certain listed financial assets from Rs 1 lakh to Rs 1.25 lakh annually, a move expected to benefit middle-income groups.

Sitharaman's proposal includes an amendment in the Finance Bill that allows taxpayers to choose between a lower tax rate of 12.5 percent without indexation or a higher rate of 20 percent with indexation on property transactions made before July 23, 2024.

Emphasizing support for startups, she proposed the abolition of angel tax for all classes of investors, a long-standing demand from the industry aimed at driving investments and fostering economic growth.

(With inputs from agencies.)