It is unlikely that taxpayers will receive any bonanza in the budget It is unlikely that taxpayers will receive any bonanza in the budget Achi-News

Form 26 AS, also known as the Annual Consolidated Statement, is a critical document that contains all the tax-related information of the taxpayer, such as TDS (Tax Deducted at Source), Advance Tax, etc.

After the formation of the Modi 3.0 government, the preparations for the general budget FY2024-25 i.e. the Union Budget 2024 have been accelerated. Taxpayers are hoping that the government will provide relief in income taxes. There have been headlines recently about potential cuts to income tax rates, but the government has now responded to those reports.

Government sources refute the lowering of tax rates

According to a report by CNBC-TV18 quoting a government official, proposals to cut income tax rates for those earning up to Rs 15 lakh a year in Budget 2024 have been debunked. The official also stressed that such changes would have a significant impact on revenue.

It is expected that the budget may take steps to increase spending, including cutting tax rates. Lower taxes may increase disposable income, encourage higher spending, and thus increase consumption and economic activity. There has been speculation about changes to the 20% and 30% income tax slabs.

The new tax regime allows tax-free income up to Rs 7 lakh after tax deductions, with salaried employees getting an additional standard deduction of Rs 50,000. This keeps income up to Rs 7.5 lakh out of the payroll tax bracket. Under the old regime, a deduction of up to Rs 12,500 under Section 87A results in tax-free income of up to Rs 5 lakh.

The exact details of what the common man can expect from the budget, especially in terms of income tax relief, will become clear only when the Union Budget 2024 is announced, expected in the second or third week of July.

Published: 25 Jun 2024, 19:13 IST