The Union Budget for 2024 initiates the Finance Ministry's new term

Union Budget 2024 Income Tax changes: The Union Budget for 2024 initiates the Finance Ministry's new term and establishes the direction for the upcoming five years. Emphasizing job creation and fiscal deficit reduction, this budget aims to boost revenue collection, streamline tax regulations, and minimize tax disputes. Here are some of the primary revisions outlined in this budget that are noteworthy.

It seems that the Ministry is leaning towards the New Tax Regime rather than the Old Tax Regime. By adjusting the tax rate brackets, the new regime becomes increasingly appealing, potentially leading more taxpayers to choose it over the old regime.

A tax savings of Rs 17,500 would enhance the disposable income for taxpayers, providing relief from escalating costs.

To encourage and incentivize taxpayers to switch to the new tax regime, the standard deduction for employees opting for this regime has been raised to Rs 75,000 from Rs 50,000. Meanwhile, the standard deduction remains at Rs 50,000 for employees choosing the old tax regime.

The limit for deduction under section 80CCD for an employer’s contribution to a notified pension scheme (such as the National Pension Scheme or the Atal Pension Yojana) has been raised from 10 pc to 14 pc specifically for employees in the private sector who opt for the new tax regime. This adjustment aligns their deduction with that available for government employees.

(For more news apart from Union budget 2024, tax changes, stay tuned to Rozana Spokesman)