In an important move for India’s employed class, the 2024 Budget has introduced substantial tax exemptions and increased the standard deduction from Rs 50,000 to Rs 75,000.
Indian Finance Minister Nirmala Sitharaman presented the first budget of Prime Minister Modi's new government, bringing much-awaited relief to the working and middle class.
Sitharaman announced that despite changes to the tax slabs, the government anticipates a revenue loss of Rs 37,000 crore. However, this move is aimed at fulfilling the long-standing demand for a revised tax structure, benefiting around 40 million taxpayers.
Under the new tax regime, no tax will be levied on income up to Rs 300,000. The revised tax rates are as follows:
- 5% tax on income between Rs 3 lakh and Rs 7 lakh
- 10% tax on income between Rs 7 lakh and Rs 10 lakh
- 15% tax on income between Rs 10 lakh and Rs 12 lakh
- 20% tax on income between Rs 12 lakh and Rs 15 lakh
- 30% tax on income above Rs 15 lakh
Additionally, the contribution of employers to the National Pension Scheme has been increased from 10% to 14%, and the tax deduction on family pensions has been proposed to rise from Rs 15,000 to Rs 25,000.
In other budget highlights, Sitharaman announced reduced prices for mobile phones, cancer medicines, lithium-ion batteries, and imported jewelry. Customs duties on goods used for manufacturing solar cells, gold, and silver have been cut to 6%.
To boost exports, customs duties on leather textiles, electronic goods, and oxygen-free copper will also be reduced. Conversely, customs duties on ammonium nitrate in the petrochemical sector will see an increase, and PVC imports will face a hike from 10% to 25%.
