New Delhi: In Budget 2024, India has announced significant tax relief for the salaried class, increasing the standard deduction from 50,000 to 75,000 rupees.
According to Indian media, Finance Minister Nirmala Sitharaman presented the first budget of Prime Minister Modi’s new government, bringing good news for the salaried and middle classes.
The Finance Minister stated that despite the tax slab changes resulting in a loss of 37,000 crore rupees for the government, the long-standing demand for tax slab adjustments for salaried individuals and the middle class will be met.
Nirmala Sitharaman added that the tax slab changes would benefit 40 million taxpayers. Under the new tax system, income up to 300,000 rupees will be tax-free.
Income from 300,000 to 700,000 rupees will be taxed at 5%, from 700,000 to 1,000,000 rupees at 10%, from 1,000,000 to 1,200,000 rupees at 15%, and from 1,200,000 to 1,500,000 rupees at 20%. Those earning above 1,500,000 rupees will face a 30% tax rate.
For the new fiscal year, the employer’s contribution under the National Pension Scheme has been increased from 10% to 14%, and the tax deduction on family pensions has been proposed to be raised from 15,000 to 25,000 rupees.
Additionally, the Finance Minister announced reductions in the prices of mobile phones, cancer medicines, lithium-ion batteries, and imported jewelry. Customs duties on items used for making solar cells will be reduced.
Customs duties on gold and silver have been set at 6%, and customs duties will also be lowered to boost exports of leather textiles. Duties on electronics and oxygen-free copper will be reduced as well.
However, customs duties on ammonium nitrate in the petrochemical sector will increase, and duties on PVC imports will rise by 10 to 25% to reduce import volumes.