Updates on Income Tax Changes: Under the new system, the tax structure will change, according to Union Finance Minister Nirmala Sitharaman.

Updates on Income Tax Changes:

The middle class is expecting tax relief, thus union finance minister Nirmala Sitharaman is presenting her eighth straight budget. While the economy grew by 8.2% in the most recent fiscal year, private consumption—which makes up more than half of the GDP of the nation—grew at a much slower rate, at just 4%. According to a Bloomberg News story from last month, the government may think about lowering personal income taxes for people who have the greatest inclination to spend in order to encourage consumer spending. This move could benefit individuals with annual earnings between ₹5 lakh and ₹15 lakh, who are currently taxed at rates ranging from 5% to 20%.

What do taxpayers hope to get out of Budget 2024–2025?

• modifying income tax rates and slabs to help the middle class.
• raising consumer expenditure and disposable income.
• rationalizing and streamlining the capital gains tax system for different asset classes.
• corporate tax rates should be lowered, especially for MSMEs.

What was said about direct taxes in the Economic Survey?

The Economic Survey 2023–24, which was made public on Monday, predicted that gross tax revenue (GTR) would increase by 13.4% in FY24, translating into a tax revenue buoyancy of 1.4. In comparison to FY23, this gain was fueled by a 15.8% increase in direct taxes and a 10.6% increase in indirect taxes. About 55% of the GTR came from direct taxes, with the remaining 45% coming from indirect taxes. The government’s attempts to improve tax progressivity are in line with this higher direct tax contribution, the finance ministry document stated.

PM Modi’s 2024–2025 Budget

Speaking to media outside the parliament on Monday, Prime Minister Narendra Modi stated that the Budget for 2024–25 will set forth objectives for the ensuing five years, with an emphasis on women, youth, farmers, and the impoverished. He continued by saying that the budget seeks to provide the framework necessary for India to become a developed country by 2047.

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