Start 30% tax slab at Rs 30 lakh in Budget 2024 to give inflation-relief to middle class: Expert view

economictimes.indiatimes.com:

Currently, income above Rs 15 lakh attracts a tax rate of 30% under both regimes. This, coupled with the removal of most exemptions and deductions in the new regime, results in a higher effective tax burden for this segment of taxpayers. As such, there is a growing consensus among taxpayers in this bracket that the current tax rates do not adequately reflect the complexities and expenses associated with inflation and higher incomes.
Consequently, taxpayers have the following expectations from the coming budget 2024 on July 23, 2024.

Budget 2024: Rationalisation of tax slabs

The Finance Act 2023 increased the basic exemption limit in the new tax regime from Rs. 2,50,000 to Rs. 3,00,000 reducing the number of slabs to 5 from 6, eliminating the tax rate of 25%. Accordingly, the existing tax structure under the concessional tax regime is as under:

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* Excluding surcharge and cess

Due to imposition of surcharge and cess, the effective tax rate can be as high as 35.88% where taxable income exceeds Rs. 2 crore and 39% where taxable income exceeds Rs. 5 crore in new tax regime.
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