Trouble viewing this email? View in web browser

Thursday, 01 Feb 2024
easynomics

What the budget has for salaried individuals and retirees

Hello and welcome to our Budget summary for salaried individuals and retirees. Nirmala Sitharaman’s interim budget has a host of interesting takeaways for salaried individuals and retirees.

- Economic Resilience and Growth:

The Indian economy has seen profound transformation over the past decade, creating a robust backdrop for career stability and growth opportunities in various sectors.

- Inclusive Development and Direct Impacts: Focus on nationwide infrastructural improvements including 'housing for all', 'har ghar jal', could mean enhanced quality of life and potential real estate investment opportunities.

- Food Security and Agro-economic Stability:

Government’s efforts in ensuring food security through free ration for 80 crore people is likely to maintain food price stability, indirectly benefiting household budgets.

- Taxation and Financial Planning

- Direct Taxation Changes: The tax liability threshold has been raised to ₹ 7 lakh under the new tax regime, potentially reducing the tax burden and increasing your take-home salary.

- Improved Taxpayer Services: The Government's efforts to streamline tax processes and resolve long-standing disputes should lead to a more efficient tax environment, allowing for better financial planning.

- Healthcare and Social Welfare

- Expansion of Ayushman Bharat Scheme:Broader healthcare coverage may reduce your healthcare expenses and provide a safety net for your family.

Housing Initiatives:

The Pradhan Mantri Awas Yojana (Grameen) is close to achieving its target of constructing 3 crore houses.

- An additional 2 crore houses are targeted to be built in the next 5 years.

- A new scheme called Housing for Middle Class will be launched to promote homeownership among the middle class.

- Focus on Social Inclusivity: Policies aimed at all-round development could lead to a more equitable society, fostering a better living environment.

- Robust Financial Sector Growth: Strengthening of the financial sector is expected to make savings and investment options more efficient, offering you a diversified investment landscape.

- Infrastructure Development: The government's increased focus on infrastructure, with substantial capital expenditure, could open new avenues in real estate investments and job opportunities in related sectors.

- Technological Advancements and Opportunities: The push towards technological innovation may offer new investment channels in emerging tech sectors and start-ups.

Pension Payments and Expenditure:

- Pension payments are a significant part of the Government of India's Demands for Grants, covering various ministries and departments.

- The Central Government's expenditure on pensions is projected to be around `2.40 lakh crore in BE 2024-25, accounting for 0.7% of the estimated GDP.

- The four Government of India Demands for Grants that cover pension expenses are Defence (Pensions), Civil (Pensions), Telecommunications, and Department of Health & Family Welfare.

Tax Updates for Individual Tax Payers

For individuals other than those falling under specific categories:

- Total income up to Rs. 2,50,000: Nil tax

- Total income between Rs. 2,50,000 and Rs. 5,00,000: 5% of the amount exceeding Rs. 2,50,000

- Total income between Rs. 5,00,000 and Rs. 10,00,000: Rs. 12,500 plus 20% of the amount exceeding Rs. 5,00,000

- Total income exceeding Rs. 10,00,000: Rs. 1,12,500 plus 30% of the amount exceeding Rs. 10,00,000

For individuals aged 60 years or more but less than 80 years:

- Total income up to Rs. 3,00,000: Nil tax

- Total income between Rs. 3,00,000 and Rs. 5,00,000: 5% of the amount exceeding Rs. 3,00,000

- Total income exceeding Rs. 5,00,000: Rs. 10,000 plus 20% of the amount exceeding Rs. 5,00,000

For individuals aged 80 years or more:

- Total income up to Rs. 5,00,000: Nil tax

- Total income between Rs. 5,00,000 and Rs. 10,00,000: 20% of the amount exceeding Rs. 5,00,000

- Total income exceeding Rs. 10,00,000: Rs. 1,00,000 plus 30% of the amount exceeding Rs. 10,00,000

Surcharge on Income Tax:

- Surcharge is applicable on the income tax amount calculated as per the above rates.

- The surcharge rates vary based on the individual's residency status and income level.

- The surcharge ranges from 10% to 37% for non-residents and individuals with different income brackets.

Other Important Updates:

- e-Verification scheme: The authorities have introduced an e-Verification scheme to collect accurate income information and reduce tax evasion. This scheme aims to ensure comprehensive determination of income.

- PAN as Business Identification Number (BIN): PAN is now being leveraged as the BIN for registration purposes in various government departments and services. This integration aims to streamline processes and enhance efficiency.

- Integration of PAN with Aadhaar: PAN and Aadhaar integration has been carried out to facilitate de-duplication and ensure accurate identification. As of December 31, 2023, a total of 58.76 crore PANs are linked with Aadhaar.

- Integrated e-Filing and Centralised Processing Center 2.0 (CPC 2.0) project: The CPC 2.0 project aims to provide a better e-filing experience, ease of compliance, and faster processing of Income Tax Returns (ITRs). As of December 31, 2023, 8.18 crore ITRs have been filed for AY 2023-24, marking a 9% increase compared to the previous year.

- Tax Information Network 2.0: The introduction of TIN 2.0 has enabled real-time credit of taxes and faster refunds to taxpayers' bank accounts. Till November 27, 2023, 6 crore challans involving an amount of Rs. 12.54 lakh crores have been processed.

Download the Mint app and read premium stories
Google Play Store App Store
View in Browser | Privacy Policy | Contact us You received this email because you signed up for Mint Top of the Morning or because it is included in your subscription. Copyright © HT Digital Streams. All Rights Reserved