Union Budget 2024: High Expectations for Significant Tax Reforms for Earners Above Rs 10 Lakh

High expectations surround the upcoming General Budget, set to be presented in July. It is anticipated that the government will make significant decisions, with potential changes to the tax system for people earning more than Rs 10 lakh, a demand from the working class. This year's budget is expected to prioritize the working class, youth, women, and low- and middle-income groups.

In recent weeks, Union Finance Minister Nirmala Sitharaman has engaged in consultations with experts across diverse sectors and representatives from major industrial associations. Further meetings with additional organizations are scheduled in the coming days. Discussions have said the needs of agriculture, services, green energy, energy, manufacturing, and industrial sectors, with calls for tax exemptions.

There is a growing demand to revise the income tax slabs for the working class, driven by concerns over the current tax burden being too high. Under the existing system, income above Rs 10 lakh incurs a 30% income tax rate. In contrast, the new tax regime imposes a 10% tax on income between Rs 6 lakh and Rs 9 lakh, and 15% on income between Rs 9 lakh and Rs 12 lakh, for those earning above Rs 7 lakh annually. With inflation leading to increased expenses, there is a notable impact on savings, prompting calls for income tax exemptions for those earning more than Rs 10 lakh annually.