According to a senior finance ministry official, the Interim Budget 2024 will not include any increases in tax rebates under the New Tax Regime, which will be published on February 1. Previously, there were rumours that the personal income tax rebate will be doubled from Rs 7 lakh to Rs 7.5 lakh in the vote-on-account for taxpayers who choose the New Tax Regime.
"There is no such proposal," the official said on condition of anonymity to Moneycontrol.
Last year, Finance Minister Nirmala Sitharaman raised the income-tax rebate threshold for assessees opting for the new direct tax regime from Rs 5 lakh to Rs 7 lakh. The basic exemption amount has also been increased to Rs 3 lakh from Rs 2.5 lakh previously. The Centre also established a Rs 15,000 deduction for a family pension.
The standard deduction provision was established in Budget 2023 for salaried individuals, retirees, and family pensioners under the new tax regime. The former tax structure currently allows a standard deduction of Rs 50,000 for salaried personnel and pensioners.
According to another official, the Centre is anticipated to announce an exemption from tax collected at source (TCS) on overseas credit and debit card spending by individuals of up to Rs 7 lakh per fiscal year in the interim budget. In Budget 2023, the income tax slabs were decreased from seven to six in an effort to simplify the personal income tax laws.
> There is no tax on income up to Rs 3 lakh.
> It is 5% for incomes of more exceeding Rs 3 lakh and up to Rs 6 lakh.
> It is 10% for amounts ranging from Rs 6 lakh to Rs 9 lakh.
> It is 15% for amounts ranging from Rs 9 lakh to Rs 12 lakh.
> It is 20% for amounts ranging from Rs.12 lakh to Rs.15 lakh.
> It is 30% for amounts over Rs 15 lakh.
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