Income Tax: Big gift to taxpayers, zero income tax on income of 10 lakhs, same discount will be available on 20 lakhs also

Income tax new update ): On one hand there is a lot of noise about the presentation of the new budget, on the other hand taxpayers have many expectations of changes in the income tax rules from this budget (Budget 2025). 

Now taxpayers will also get many gifts regarding income tax in the budget. Especially according to the new tax system, those with income up to Rs 10 lakh will not have to pay tax and taxpayers earning Rs 20 lakh will also get a good discount. This will be a relief for taxpayers.

The limit of tax free income will increase- 

The budget coming in February can be full of expectations for many people, especially for taxpayers. Due to inflation, people want their tax-free income limit to be increased. 

At present, there is no tax (IT rules for Taxpayers) on income up to Rs 7.75 lakh, but many people are demanding that it be increased to Rs 10 lakh, so that they can get more relief. This change is expected in the upcoming budget. However, many people believe that the limit of tax-free income will increase.

This is the consideration regarding the tax slab-

The government is considering some measures that can provide tax relief to the middle class people. Its objective is to give tax relief (new tax slabs) to those whose annual income is up to Rs 20 lakh. 

There can be two ways of doing this, one is that there should be no tax on income up to Rs 10 lakh. The second way can be that a new tax slab (new tax regime) should be fixed for those earning Rs 15 to 20 lakh, which should be 25 percent. 

This relief will be available only to those who choose the new tax system. Currently, exemption is available for income of Rs 7.75 lakh with a standard deduction of Rs 75 thousand, and higher tax is levied on income above Rs 15 lakh.

This relief was received in 2023-

If the central government gives relief to taxpayers, it may face a huge loss in revenue, which will range from Rs 50 thousand crore to Rs 1 lakh crore. Taxpayers who adopted the new tax system got relief in the budget of the year 2023. 

In this, the tax exemption limit was increased and tax was exempted up to a fixed amount of Rs 7 lakh, which benefited the taxpayers to some extent.

This will be beneficial for the taxpayers -

According to experts, to improve the country's economy, the government should increase the spending capacity of the people. For this, it is necessary to focus on reducing tax rates. 

If the government gives a tax exemption of 25 percent for individuals with a middle income of Rs 15 to 20 lakh, they will have more money. In this way, consumers will shop more, which will increase demand in the market and also boost economic growth.