Budget 2024: The government has started working on a proposal to provide some relief in terms of tax reduction to the middle class. The discussions have begun within the government to make the new tax regime more attractive by offering new relief to taxpayers.
According to a report on ET Now which quoted sources, said a new tax slab is likely to be introduced under the new tax regime. Taxpayers earning up to Rs 5 lakh per year, as well as those with annual incomes exceeding Rs 15 lakh, are expected to receive relief in the form of reduced taxes.
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In addition to tax reductions, the government is expected to announce benefits related to process simplification in the forthcoming budget. However, these discussions are in the very early stages. The final decision will be taken at the Prime Minister’s Office (PMO) level, ET Now reported. The initiation of these discussions brings hope that the middle class or salaried taxpayers may receive relief in the upcoming Union Budget.
India Inc has also pitched for lowering income tax burden on common man. During pre-Budget consultation with Sitharaman, the industry leaders and associations urged the government to include relief in income tax at the lower end of income slabs, streamlining of employment inked incentive schemes like Production Linked Incentive (PLI), and promoting ease of doing business. Recommendations of Ficci centred around capex drive, innovation and tax simplification.
The industry leaders also laid stress on boosting the MSME (micro, small, and medium enterprises) sector, considered a backbone of the Indian economy and main employment generator.
