.jpg)
Detailed Example: Tax Calculation for Different Income Levels
Example 1: Income of ₹8 lakh
1. Income up to ₹3 lakh: No tax
2. Income from ₹3,00,001 to ₹6 lakh (₹3 lakh)**: 5% of ₹3 lakh = ₹15,000
3. Income from ₹6,00,001 to ₹8 lakh (₹2 lakh)**: 10% of ₹2 lakh = ₹20,000
Total tax payable = ₹15,000 + ₹20,000 = ₹35,000
Example 2: Income of ₹15 lakh
1. Income up to ₹3 lakh: No tax
2. Income from ₹3,00,001 to ₹6 lakh (₹3 lakh): 5% of ₹3 lakh = ₹15,000
3. Income from ₹6,00,001 to ₹9 lakh (₹3 lakh): 10% of ₹3 lakh = ₹30,000
4. Income from ₹9,00,001 to ₹12 lakh (₹3 lakh): 15% of ₹3 lakh = ₹45,000
5. Income from ₹12,00,001 to ₹15 lakh (₹3 lakh): 20% of ₹3 lakh = ₹60,000
Total tax payable = ₹15,000 + ₹30,000 + ₹45,000 + ₹60,000 = ₹1,50,000
Specific Information about Other Changes in the Budget
1. Increase in Standard Deduction
The standard deduction for salaried individuals has been increased from ₹50,000 to ₹75,000. This aims to provide additional relief to salaried taxpayers by reducing their taxable income.
2. Enhanced Deductions for Health Insurance Premiums
Under Section 80D, the deduction limit for health insurance premiums has been increased. The new limits are:
- Self, spouse, and children: ₹35,000 (previously ₹25,000)
- Senior citizens: ₹55,000 (previously ₹50,000)
3. Revised Section 80C Limit
The investment limit under Section 80C, which includes instruments like PPF, NSC, ELSS, and others, has been increased from ₹1.5 lakh to ₹2 lakh.
4. New Savings Scheme for Women
A new savings scheme has been introduced specifically for women, offering an interest rate of 8% per annum. This scheme is aimed at encouraging savings among women and promoting financial inclusion.
5. Changes in Corporate Tax
- MSMEs: The turnover threshold for MSMEs to avail of the reduced corporate tax rate of 25% has been increased from ₹250 crore to ₹400 crore.
- Start-ups: Start-ups will now get an extended period for carry forward of losses from 7 years to 10 years, provided there is no change in shareholding beyond 51%.
6. Digital Payments Incentives
To promote digital payments, a 2% TDS on cash withdrawals exceeding ₹1 crore in a year from a bank account has been introduced. Additionally, businesses with a turnover of more than ₹50 crore will be required to offer low-cost digital modes of payment.
7. Real Estate and Housing
- Affordable Housing: Additional deduction of ₹1.5 lakh on interest paid on loans borrowed up to March 31, 2025, for purchasing affordable houses.
- Real Estate Investment Trusts (REITs): The government has proposed measures to make REITs more attractive, including tax benefits for investors.
In a bid to provide relief to taxpayers and stimulate economic growth, the Government of India has announced significant changes in the Union Budget 2024-25. Key highlights include revised income tax slabs, increased deductions, and new savings schemes.
Revised Income Tax Slabs:
- Income up to ₹3 lakh: No tax
- Income from ₹3,00,001 to ₹6 lakh: 5%
- Income from ₹6,00,001 to ₹9 lakh: 10%
- Income from ₹9,00,001 to ₹12 lakh: 15%
- Income from ₹12,00,001 to ₹15 lakh: 20%
- Income above ₹15 lakh: 25%
For instance, an individual earning ₹15 lakh annually will pay a total tax of ₹1,50,000 under the new regime.
Key Changes:
1. Standard Deduction: Increased from ₹50,000 to ₹75,000.
2. Health Insurance Premiums: Deduction limits under Section 80D increased.
3. Section 80C Limit: Raised from ₹1.5 lakh to ₹2 lakh.
4. New Savings Scheme for Women: Offering an 8% interest rate.
5. Corporate Tax Benefits: Enhanced benefits for MSMEs and start-ups.
6. Digital Payments: Incentives and requirements to promote digital transactions.
7. Affordable Housing: Additional deductions on interest for home loans.
Finance Minister [Name] emphasized that these changes aim to simplify the tax process, increase disposable income, and encourage savings and investments across various sectors. Taxpayers are advised to review the detailed provisions and consult financial advisors for personalized planning.
For comprehensive details, refer to the official budget documents available on the Ministry of Finance's website.