The new financial year is starting from 1 April, and this time it is bringing many gifts for the middle class. This is not a rumor, but it is true because the announcements made by the government in the budget are now going to be implemented in the new financial year. Remember, Finance Minister Nirmala Sitharaman made many generous announcements for the middle class while presenting the budget on 1 February? Let us remind you what big announcements were made and how you will benefit from them.
There will be huge relief in tax
The biggest good news is for the tax payers. The Finance Minister had clearly said that those who choose the new tax system will not have to pay any income tax on income up to Rs 12 lakh. Yes, income up to Rs 12 lakh is tax-free! And what’s more, those who are salaried will get more benefits. With a standard deduction of Rs 75,000, there will be no tax on their income up to Rs 12.75 lakh.
The government has also reduced the tax slabs, which will benefit everyone. All this is being done so that the tax burden on the middle class is reduced and they have more money in their hands. When you have more money, you will spend more, save more and also invest more, which will also benefit the country’s economy. Isn’t this amazing?
Relief in TDS and TCS too
Not only income tax, the government has also simplified the rules of TDS and TCS. Our senior citizens, that is, elderly people, used to worry about high tax deduction on the income from bank interest. But now the government has increased the limit of tax deduction on interest for them from Rs 50,000 to Rs 1 lakh directly. This means that now the elderly will not be charged any tax on interest up to Rs 1 lakh.
Similarly, if you live on rent, then you had an annual limit of Rs 2.4 lakh for TDS, which has now been increased to Rs 6 lakh. That is, now TDS will not be deducted on rent up to Rs 6 lakh.
And another relief! If you are a little late in filing income tax return or there is a little delay in filing TDS, then now you do not need to fear. The government has removed it from the category of crime. Now the same exemption will be available in the rules of TCS.
Old tax returns can also be filed for a longer period
The government has given another big facility to the taxpayers. Now you can update the old tax return of any year not only for 2 years, but for 4 years. That is, if you have made any mistake or missed any information, then now you will have more time to correct it.
And also, good news for property owners
The government has also given a good news for those who have their own property. Now you can avail the benefit of the annual value of your two properties without any conditions. Earlier there were some conditions in this, but now they have been removed.
So you see, there are so many benefits for the middle class in the new financial year. The government has taken all these decisions keeping in mind your pocket. Now you too be happy and take advantage of these new rules!
