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Wednesday, February 12, 2025

Increased income tax exemption will boost savings and investment, economy will speed up: Expert – India tv hindi

Income tax rebate

Photo: File Income tax exemption

Finance Minister Nirmala Sitharaman Giving great relief to the middle class, the Finance Minister freed the annual income ₹ 12 lakh (₹ 12.75 lakh for salaried taxpayers including standard deduction) from income tax and also made changes in the tax slab under his reformist budget. The new structure will broaden the reach of the middle class, which will save them more discretionary income, which will promote domestic consumption, savings and investment. Sushil Kumar, Advocate (Tax Expert) said that the Union Budget 2025 has come as a relief for middle class taxpayers. The proposed changes in Budget 2025, especially tax slab amendments and the scheme of the new Income Tax Act, will work to bring the Indian economy to new heights.

New tax slab:

Income (in ₹) tax rate

0-4 lakh zero

4-8 lakh 5%

8-12 lakh 10%

12-16 lakh 15%

16-20 lakh 20%

20-24 lakh 25%

30% above 24 lakhs

Income tax law will be made simple

New Income Tax Bill: The Finance Minister announced that the new Income Tax Bill would be introduced next week. The bill will be simple, clear and straightforward for both taxpayers and tax authorities.

Updated tax filling time limit: The budget has increased the time limit for updating tax returns from 2 years to 4 years. This change will give taxpayers more time to review their returns and update it to avoid tax or punishment.

TDS limit: TDS rates and boundaries will be reduced to simplify compliance. The TCS limit has been increased from ₹ 7 lakh to ₹ 10 lakh under LRS (Liberal Relations Scheme). TDS exemption for senior citizens: The tax deduction limit on interest for senior citizens has been increased from ₹ 50,000 to ₹ 1,00,000.

Annual limit of TDS on rent: The annual limit of TDS on rent has been increased from ₹ 2.4 lakh to ₹ 6 lakh, which will benefit small taxpayers.

Fiscal deficit: The government emphasized in the budget that the fiscal deficit will be managed in such a way that the debt of the Central Government decreases in the proportion of GDP. The revised total expenditure estimate is ₹ 47.16 lakh crore, including capital expenditure ₹ 10.1 lakh crore. This year’s fiscal deficit is now estimated at 4.8% of GDP.

New funds for startups: Finance Minister Nirmala Sitharaman announced the establishment of a new fund to empower startups and entrepreneurs. In addition to the current government’s contribution of ₹ 10,000 crore, ₹ 10,000 crore will be contributed to it. Apart from this, a new scheme will be started for 5 lakh women and first time entrepreneurs of Scheduled Castes and Scheduled Tribes. Period of joining for startups: The eligibility period to get tax benefits for startups has been extended by 5 years.

Delay in TCS Payment: Now the delay in TCS payment will not be considered a criminal offense. The delay in TDS payment in the earlier budget was also excluded from the category of crime.

Tax relief on multiple properties: In the budget of 2025, the Finance Minister has relaxed the conditions of tax relief on self-residence properties. Taxpayers can now claim tax benefits on two self-existent assets. This improvement will reduce tax burden for individuals who own many assets and reside in them. This step is in line with the government’s extensive strategy to make financial empowerment and living easier.

Customs and Fee Motion: In addition to the finished fees in the previous budget, seven more tariff rates will be removed. Currently 82 tariff lines under cess will be exempted.

Life Rakshak Drugs: 36 additional medicines for cancer, rare diseases and chronic conditions will be completely free from basic customs (BCD). 5% concessional customs duty will be imposed on six additional life -saving drugs.

Capital goods for EV battery manufacture: The Finance Minister has proposed to include 35 additional capital goods for electric vehicles (EV) construction and 28 additional capital items for mobile phone battery. This will promote domestic production of lithium-ion batteries in the country.

MSME Empowerment: The government will increase MSME investment and turnover limit by 2.5 times and 2 times respectively. This step will enable MSME to expand, innovate and generate more employment opportunities for youth.

Extension of IIT: The Finance Minister announced the expansion of five IITs, which will start from IIT Patna. Additional infrastructure will be developed in five IITs installed after 2014, giving 6,500 additional students to education, hostels and other facilities. IIT Patna will also be expanded.

Latest business news

(Tagstotranslate) Budget 2025 (T) Income Tax Relief (T) 12 Lakh Income is Tax Free (T) Income tax exemption (T) Economy will speed up

Source

Brijesh Kumar
Brijesh Kumarhttp://Newstiger.in
Brijesh is dedicated to providing timely and trustworthy news, covering everything from politics to pop culture. Offering readers a thoughtful approach to the world around us, Brijesh ensures you never miss a crucial update

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