The interim budget presented in the Parliament on Friday by finance minister in-charge Piyush Goyal has given more relief to taxpayers. The finance minister has increased the tax
rebate
to Rs 12,500 from the existing Rs 2,500.
“Clause 8 of the (Finance) Bill seeks to amend section 87A of the Income-tax Act to provide relief to the individual taxpayers by increasing the maximum amount of tax rebate to Rs 12,500 from existing Rs 2,500,” the
Finance Bill
said.
“The tax rebate shall now be admissible to taxpayers having a total income up to five hundred thousand rupees, instead of existing three hundred fifty thousand rupees,” the bill stated.
The FM announced that there would be no tax for income up to Rs 5 lakh and increased the standard deduction for taxpayers from Rs 40,000 to Rs 50,000. Individual taxpayers now pay 5%
income tax and a health and education cess of 4% on the tax amount for income of Rs 2.5 lakh to Rs 5 lakh.
Stay informed with the latest Business News on Times of India. Explore the list of Bank Holidays, stay informed about Budget 2025, discover the new Income Tax Slabs, and use the Income Tax Calculator for hassle-free tax planning.
M Allirajan writes for the business section of The Times of India...
Read MoreM Allirajan writes for the business section of The Times of India. He has been tracking mutual funds and markets for nearly four years. Having worked in a business newspaper and a business magazine tracking the emerging trends in business and developments in corporate India, he believes in giving straight, simple and reader friendly content. When not following markets and developments in the mutual funds space, he reads books and listens to music.
Read Less