budget 2024: Finance Minister Nirmala Sitharaman (Nirmala Sitharaman) No change has been made in tax in the interim budget. The government has kept the tax slab the same as before. However, in a major relief to the people, the Finance Minister has increased the amount up to twenty-five thousand rupees (Rs. 25,000) for the period up to the financial year 2009-10 and ten thousand rupees (Rs. 10,000) for the period from the financial year 2010-11 to 2014-15. The outstanding direct tax demand up to Rs.) has been withdrawn. About one crore taxpayers are expected to benefit from this. Also, while addressing the House, the Finance Minister said that I do not propose to make any changes in the tax. The government will maintain the same tax rates for direct and indirect taxes, including import duties.
what is the current tax
Under the changes made in 2023, people with income up to one year are given tax exemption in the new tax regime. Along with this, they also get a standard deduction of Rs 50 thousand. This simply means that people with income up to Rs 7.50 lakh do not have to pay income tax. However, now people are demanding that the government should increase the standard deduction from Rs 50 thousand to Rs 1 lakh. With this, salaried income tax payers will be almost at par with other individual taxpayers earning from business or professionals.
Fiscal deficit will be 5.8% of GDP
While presenting the Vote on Account or interim budget for the financial year 2024-25, Nirmala Sitharaman has proposed to increase capital expenditure by 11 percent to Rs 11.11 lakh crore to accelerate economic growth. At the same time, the fiscal deficit target for the current financial year has been revised to 5.8 percent of the gross domestic product (GDP). A total expenditure budget of Rs 47.66 lakh crore has been presented. In his budget speech of less than an hour, he highlighted the achievements of the government in the last 10 years due to which the country came out of the category of ‘fragile economy’ and became the fifth largest economy in the world. In the budget, capital expenditure for the financial year 2024-25 was kept at Rs 11.11 lakh crore. At the same time, the revised estimate of fiscal deficit for the current financial year has been reduced from 5.9 percent to 5.8 percent. The fiscal deficit is estimated to be 5.1 percent in the next financial year. He said that every challenge before 2014 has been overcome through economic management and better governance.