Good news for senior citizens. On February 1, during the budget presentation, Union Finance Minister Nirmala Sitharaman emphasized that this budget focuses on enhancing government development, benefiting everyone, and boosting the middle class’s capacity. As we approach the 25-year mark of this century, our aspirations for a developed India continue to motivate us. Currently, our economy stands as the fastest-growing among major economies.
In a significant move for senior citizens, the Finance Minister announced an increase in the TDS limit from Rs 50,000 to Rs 1 lakh.
A major benefit for income tax payers was also revealed. Individuals earning Rs 1 lakh per month will now be exempt from paying taxes, and there will be no tax on incomes up to Rs 12.75 lakh. Additionally, taxpayers can now file their income tax returns for the past four years simultaneously.
Nirmala Sitharaman made a noteworthy announcement stating that individuals with an annual income of Rs 12 lakh will no longer be required to pay taxes under the new tax regime. Previously, the tax exemption threshold was set at Rs 7 lakh, with a standard deduction maintained at Rs 75,000.
Furthermore, the Finance Minister indicated that the FDI limit in the insurance sector will be raised. The government plans to eliminate seven tariff rates, leaving only eight in place, and there is a proposal to abolish the social welfare surcharge. A new income tax bill aimed at simplifying and enhancing transparency in the tax system is expected to be introduced next week.