Budget 2024: Lower income tax, new slabs and jump in PM-KISAN cash handout may be on cards

The Centre may reduce the income tax rate, create new taxation slabs, and increase the cash handout for small farmers while presenting the upcoming Union Budget 2024-25, as per a report.

Under the old tax regime, a levy of 30% is imposed on those earning above ₹10 lakh. However, those opting to be taxed under the old regime are allowed to claim higher tax deductions.

New tax slabs?

The Centre may tweak the taxation slabs as part of the rejig, Bloomberg reported, citing sources.

An official reaction to the news report was awaited, and the development could not be independently verified.

At present, those earning between ₹6 lakh and ₹15 lakh are taxed in the range of 5%-20% under the new tax regime.

Under the old tax regime, those earning between ₹2.5 lakh and ₹10 lakh are taxed in the range of 5%-20%.

The tax slabs under the new regime are as follows:

• ₹3-6 lakh – 5% (Tax rebate under Section 87/A)
• ₹6-9 lakh – 10%
• ₹9-12 lakh – 15%
• ₹12-15 lakh – 20%
• ₹15 lakh and above – 30%

The tax slabs under the old regime are as follows:

• ₹2.5-5 lakh – 5%
• ₹5-10 lakh – 20%
• ₹10 lakh and above – 30%

Jump in PM-KISAN sop?

The report further claimed that the government is considering to raise the annual cash handout to small farmers to Rs 8,000. At present, the farmers are provided a cash assistance of Rs 6,000 under the PM-KISAN Needhi Samman scheme.

The Centre had launched the scheme in February 2019, and has so far released 17 installments. Each eligible farmer is paid an installment of ₹2,000 each thrice a year.

The scheme benefits over 9.6 crore farmers with small landholdings, as per the agriculture ministry.