What’s In Store For Salaried Class?

In surveys conducted preceding Union Budget 2023-24, taxpayers had asked for tax cuts and increase in the deduction threshold under Section 80C of the Income-tax Act, 1961, and the interest on home loans, among others. However, the finance minister surprised individual taxpayers by giving benefits only under the new tax regime. Here are some of the changes that will impact the salaried class significantly in FY24. Tax Rates And Slabs The tax rates, income slabs and the deduction thresholds for an individual and/or Hindu Undivided Family (HUF) opting for the old tax regime have not been touched. However, to make the new tax regime attractive to taxpayers, both the income slabs as well as the tax rates have been changed. Thus, all taxpayers opting for the new tax regime would see a reduction in taxes considering that the income slabs as well as the tax rates have been revised. If we...