New Delhi4 minutes ago
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Finance Minister Nirmala Sitharaman is meeting with the Central Board of Reserve Bank of India (RBI) on 8 February today. In this, she will tell about the major proposals of the General Budget 2025-26 including relief in income tax.
In this meeting, the Finance Minister will address the members of the Reserve Bank of India Board and will tell about the steps taken by the government in the budget, so that there is a good balance between the growth and fiscal understanding of the country.
Tax free earnings up to 12 lakh rupees The budget presented on 1 February gave great relief for income tax. Under the New Tax Period, no tax will have to be paid on earnings up to Rs 12 lakh. This discount will be Rs 12.75 lakhs with standard deductions of 75 thousand for employed people. The slab of the New Tax Regyve has also been changed. There has been no change in the old tax regime.
These 8 major changes were also made due to income tax or tax
- TDS exemption doubles on income from rent: The limit of TDS has been increased from 2.4 lakh to 6 lakhs on the income from rent. That is, TDS will not be deducted on an annual rent of up to 6 lakh rupees.
- Senior citizens double on income from interest: The tax exemption received on the earnings from the interest of bank and post office to senior citizens has been increased from 50 thousand rupees to 1 lakh rupees. That is, now on the income of interest, senior citizens will get relief of up to Rs 1 lakh.
- Will be able to file returns for the last 4 years: The limit of filing old income tax returns has been increased from 2 years to 4 years. That is, if a taxpayer has filed his return wrong or is left to file, then he will now be able to fix this mistake by filing updated returns within 4 years.
- Self -occupied house will be benefited at two houses: Tax relief has been given at Self Occupide House in the budget. This means that if you have two houses and you live in both homes, now you will be able to take advantage of tax on both properties. Whereas earlier tax relief was available only in a self -occupied house.
- New income tax bill will come next week: The government will bring a new income tax bill next week. This will make the tax system much easier and transparent. The aim is to protect taxpayers unnecessarily notices and troubles. Along with this, the KYC process will also be made easier, which will lead to less paperwork in banks and other financial work.
- If there is no PAN number, tax will be levied: TDS and TCS were commonly used while selling goods. This caused many problems to both the customer and the shopkeeper. The Finance Minister has announced the removal of TCS from this. It has also been said that at high rates, TDS will be put in the same cases which will not have a PAN number.
- No tax on sending up to 10 lakh rupees abroad for studies: The limit of tax collected at source (TCS) has now been reduced to Rs 10 lakh on sending money for studies abroad. Right now a person sends money abroad. If this amount is more than 7 lakh rupees, then TCS is levied on it. However, you will get this discount only if this money has been taken loan from a financial organization like bank etc.
- Rebate on withdrawing money from NSS : Many senior citizens eat very old National Savings Scheme (NSS), on which no interest is being paid. The Finance Minister has announced that those who withdraw money from NSS on 29 August 2024 or after that will not have to pay any tax on withdrawal. The same rule will also apply to NPS (National Pension Scheme) Vatsalya accounts, but it will have a limit for exemption.
RBI cut repo rate by 0.25% The Reserve Bank of India has reduced the interest rates from 6.5% to 6.25% on February 7 after nearly 5 years. Now all your loans can be cheap and EMI will also be reduced. After decreasing the repo rate, banks can also reduce their interest rates on loans like housing and auto. If the interest rates are low, housing demand will increase. More people will be able to invest in real estate.