Budget 2024 Likely To Bring Relief For THESE Taxpayers Battling Inflation & Boosting Consumption

In end July, the first budget of the Modi 3.0 government will be presented and understandably peoples expectations are high especially taxpayers expectations. For one, Prime Minister Modi whilst taking claim to form the governments and that his government would focus on raising middle class savings and improving the quality of their lives. Second, the last time anything significant was really announced for taxpayers was during the 2020 budget when a new tax regime with lower slabs was brought in. And 3rd, considering the high levels of inflation, people do deserve some relief. Now it seems Budget 2024 is going to bring relief for the taxpayers. According to a Reuters report which quotes to government sources, tax rates are likely to be reduced for some groups of individuals in a move to enhance middle class savings and also boost the consumption in India, which is Asias third largest economy. While the Indian economy grew at 8.2%, the consumption grew at only half that percent. So let's take a look at the five key things that can change. As per this report, those earning up to rupees 15,00,000 annually up till some limit, they may get some tax relief. Second, there could be changes made to the new tax regime which was introduced in 2020 where annual income up to ₹15,00,000 is taxed between 5:00 to 20% but above 15,00,000 is taxed at 30%. So the personal tax rate jumps 6 times when a persons income increases five times, say from ₹3,00,000 to ₹15,00,000 and this is quite steep. Third, the government may also consider lowering tax rates for annual incomes up till ₹10,00,000. A new threshold is being discussed for income tax at the highest rate of 30% under the old tax regime as well. 5:00 Any loss of income to the government due to these tax cuts, they are hoping to partially offset through the increased consumption in the category that they are trying to drive. According to a Post poll survey, voters were worried about inflation, unemployment, and decreasing incomes. In fact, the RBIs Household Inflation Expectation Survey revealed that households expect inflation to increase by 20 bips in the next three months. So a cut in the personal tax can boost consumption and of course help the middle class as well. Hope you enjoyed this video. If you have any specific budget expectations, do let us know in the comments below.