Interim Budget 2024: Relief Expected For Middle Class As Tax Slabs Likely To Be Changed

Just a couple of months before the Lok Sabha elections take place this year, India＊s Finance Minister Nirmala Sitharaman is set to present the interim Budget 2024 on February 1. And just like every year, taxpayers are bound to have some expectations of relief from the Budget.

Well, it seems that the middle-class income taxpayers are set for a pleasant surprise this time.

Budget 2024: Relief For Middleclass Taxpayers?

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The interim budget on 1 February is likely to increase the tax rebate under the new income tax regime. This is as per two people close to the discussions said, giving relief to the middle class ahead of the approaching Lok Sabha elections, Mint reported.

It is expected that the govt may raise the tax rebate, which at present is available for income up to Rs 7 lakh, to about Rs 7.5 lakh under the new tax regime, the people mentioned, on the condition of anonymity. If this expectation comes true, middle-class taxpayers can get some relief. For the unversed, the Section 87A rebate is available under the new tax regime for taxable incomes up to Rs 7 lakh. So, individuals with taxable income of less than Rs 7 lakh do not have to pay any taxes if they had chosen the new tax regime in FY 2023-24. And now, interim Budget 2024 is expected to further expand this tax rebate to Rs 7.5 lakh instead of Rs 7 lakh.

Also Read: Bengaluru Man's Frustration-Filled Tweet On Income Tax Goes Viral

What Are The Current Income Tax Slabs?

New Tax Regime

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After the changes announced last year in Budget 2023, the income tax slabs under the new regime have been as follows (effective April 1, 2023).

Up to Rs 3 lakh: NIL

Rs 3 lakh- Rs 6 lakh: 5%

Rs 6 lakh-Rs 9 lakh: 10%

Rs 9 lakh-Rs 12 lakh: 15%

Rs 12 lakh- Rs 15 lakh: 20%

Over Rs 15 lakh: 30%

Old Tax Regime

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As far as the old tax regime is concerned, the tax slabs are bifurcated across age groups, i.e., different for those below 60, above 60 (senior citizens), and above 80 (super senior citizens).

Income tax slabs for individuals aged below 60 years & HUF

Income tax slab for individuals aged above 60 years to 80 years

Income tax slab for Individuals aged more than 80 years

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Also Read: Who Was James Wilson? The Man Who Introduced Income Tax In India

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