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Increase in Standard Deduction and deduction from family pension for taxpayers in tax regime Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024 - Finance BillExtract Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024 The existing provision of clause (ia) of section 16 of the Act provides that a deduction of fifty thousand rupees or the amount of the salary, whichever is less, shall be made before computing the income under the head Salaries . 2. Further, the existing provision of clause (iia) of section 57 of the Act provides that in the case of income in the nature of family pension, a deduction of a sum equal to thirty-three and one-third per cent of such income or fifteen thousand rupees, whichever is less, shall be made before computing the income chargeable under the head Income from other sources . 3. With the aim of encouraging and incentivizing taxpayers (specially the salaried taxpayers) to shift to the new tax regime, it is proposed to insert a proviso after clause (ia) of section 16 to provide that in a case where income-tax is computed under clause (ii) of sub-section (1A) of section 115BAC of the Act , the provisions of this clause shall have effect as if for the words fifty thousand rupees , the words seventy five thousand rupees had been substituted. 4. It is also proposed to insert a proviso in clause (iia) of section 57 to provide that in a case where income-tax is computed under clause (ii) of sub-section (1A) of section 115BAC of the Act , the provisions of this clause shall have effect as if for the words fifteen thousand rupees , the words twenty five thousand rupees had been substituted. 5. These amendments will take effect from the 1st day of April, 2025, and will accordingly apply to assessment year 2025-26 and subsequent assessment years. [Clauses 10 24] Full Text : Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024
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