What is there for Middle Class Tax-payer ?

The alterations to the income tax structure were revealed by Finance Minister Nirmala Sitharaman during her address on the Union Budget 2024. Among the modifications announced were the introduction of new income tax slabs for the fiscal year 2024-2025 and an increase in the standard deduction. Notably, the standard deduction saw a significant rise from Rs 50,000 to Rs 75,000, providing taxpayers with a higher deduction to reduce their taxable income.

Furthermore, adjustments were made to the tax slab limit for the 5% tax rate, which was raised from Rs 5 lakh to Rs 7 lakh. The capital gains tax regime underwent a complete overhaul, resulting in higher tax rates. Despite these changes, the existing income tax regime remained untouched, as the government aims to encourage taxpayers to transition to the new regime. This strategic move is intended to promote compliance with the new tax structure while ensuring a smooth transition for taxpayers.