Charting a new growth path: New tax regime eases middle-class burden

Share of middle class in income tax increased till 2023-24 while TDS has been rationalised by reducing the number of rates and adjusting threshold limits

Challenges 

- While the number of income-tax returns filed has increased, a number of filers reported limited income.  More than 80 per cent of individuals reported income of less than Rs 10 lakh a year

  - Share of middle class in income tax increased till 2023-24 

 

Takeaways

  - No income tax is payable under the new regime for annual incomes up to Rs 12 lakh (Rs 1 lakh per month), excluding capital gains

  - Tax deducted at source (TDS) rationalised by reducing the number of rates and adjusting threshold limits