Budgeting for 2024-25

India's Union Budget 2024-25 introduced significant changes, particularly in the personal income tax regime. Here's a summary for your LinkedIn profile:

New Income Tax Regime: A Simplified Approach

The budget emphasized encouraging taxpayers to adopt the new income tax regime. While the old regime remains an option, the government has sweetened the deal for the new one:

• Increased tax slabs: The starting tax-free income limit has been raised to ?3 lakh, with subsequent slabs and rates adjusted to provide relief to taxpayers.
• Enhanced standard deduction: This deduction, which can be claimed without proof, has been increased from ?50,000 to ?75,000.
• No more tax deductions: Unlike the old regime, the new one doesn't offer deductions under Section 80C and others, making it simpler but less beneficial for those with eligible investments.

Key Takeaways for Individuals

• Lower-income earners will benefit significantly from the increased tax-free limit and higher standard deduction.
• Middle-income taxpayers might find the new regime more attractive due to simplified calculations, but those with substantial investments might prefer the old regime.
• High-income earners will likely continue to use the old regime due to the availability of deductions.

Impact on the Economy

The budget aims to boost disposable income, leading to increased consumption and economic growth. However, the long-term impact on tax revenue and the overall economy remains to be seen.

Would you like to delve deeper into specific aspects of the budget, such as its implications for businesses, infrastructure, or other sectors?

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