Interim Budget 2024 For Salaried Employees

The combined whammy of an unstable labour market and rising living expenses without commensurate wage increases from employers has been especially hard for salaried professionals.

Budget 2023 was the most recent one, and it had a major statement for ordinary taxpayers, according to FM Sitharaman. Taxpayers’ personal income tax brackets have been raised by FM. The new tax rates are as follows: the Federal Ministry of Finance (FM) announced that individuals will not be taxed from 0 to 3 lakhs rupees, 5% from 3 to 6 lakhs rupees, 10% from 6 to 9 lakhs rupees, 15% from 9 to 12 lakhs rupees, 20% from 12 to 15 lakhs rupees, and 30% from 15 lakhs and above.

“I introduced in 2020, the new personal income tax regime with 6 income slabs, starting from Rs 2.5 Lakhs. I propose to change the tax structure in this regime by reducing the number of slabs to 5 and increasing the tax exemption limit to Rs 3 Lakhs,” FM added.

Although the budget address makes mention of strong tax revenues and stable implementation of GST, the middle class has not yet experienced this affluence. Some relief might have been offered by changes to 80C instruments, an increase to the standard deduction, or better exemptions for home loan interest.

Therefore, it is reasonable for the salaried class to feel dissatisfied with personal taxes. It would be great if, as long as the big picture remains stable, we could see some reasonable compromises on people’s tax bills soon. According to Ashish Aggarwal, Director, Acube Ventures, “economic dividends accrue when more money remains in the hands of the middle class, which allows consumption-led growth to persist.”

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Tax Relief 2024

To further improve tax payer services, proposal to roll out a next-generation Common IT Return Form for tax payer convenience, along with plans to strengthen the grievance redressal mechanism.

Rebate limit of Personal Income Tax to be increased to Rs. 7 lakh from the current Rs. 5 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to Rs. 7 lakh to not pay any tax.

Tax structure in new personal income tax regime, introduced in 2020 with six income slabs, to change by reducing the number of slabs to five and increasing the tax exemption limit to Rs. 3 lakh. Change to provide major relief to all tax payers in the new regime.

New Tax Rates 2024

INDIRECT TAXES

• Number of basic customs duty rates on goods, other than textiles and agriculture, reduced to 13 from 21.
• Minor changes in the basic custom duties, cesses and surcharges on some items including toys, bicycles, automobiles and naphtha.

• Excise duty exempted on GST-paid compressed bio gas contained in blended compressed natural gas.
• Customs Duty on specified capital goods/machinery for manufacture of lithium-ion cell for use in battery of electrically operated vehicle (EVs) extended to 31.03.2024
• Customs duty exempted on vehicles, specified automobile parts/components, sub-systems and tyres when imported by notified testing agencies, for the purpose of testing and/ or certification, subject to conditions.

• Customs duty on camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone reduced to zero and concessional duty on lithium-ion cells for batteries extended for another year.
• Basic customs duty reduced on parts of open cells of TV panels to 2.5 per cent.

• Basic customs duty on electric kitchen chimney increased to 15 per cent from 7.5 per cent.
• Basic customs duty on heat coil for manufacture of electric kitchen chimneys reduced to 15 per cent from 20 per cent.

• Denatured ethyl alcohol used in chemical industry exempted from basic customs duty.
• Basic customs duty reduced on acid grade fluorspar (containing by weight more than 97 per cent of calcium fluoride) to 2.5 per cent from 5 per cent.
• Basic customs duty on crude glycerin for use in manufacture of epicholorhydrin reduced to 2.5 per cent from 7.5 per cent.

• Duty reduced on key inputs for domestic manufacture of shrimp feed.

• Basic customs duty reduced on seeds used in the manufacture of lab grown diamonds.

• Duties on articles made from dore and bars of gold and platinum increased.
• Import duty on silver dore, bars and articles increased.

• Basic Customs Duty exemption on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode continued.
• Concessional BCD of 2.5 per cent on copper scrap is continued.

• Basic customs duty rate on compounded rubber increased to 25 per cent from 10 per cent or 30 per kg whichever is lower.

• National Calamity Contingent Duty (NCCD) on specified cigarettes revised upwards by about 16 per cent.