Politics

What tax changes to expect as NDA comes back in power?

Image credits: Freepik

Narendra Modi as Prime Minister for a third consecutive term

With the new administration only created two days ago, it's an intriguing read to see what the average person expects from Modi government 3.0.

Image credits: Freepik

The tax slabs

The government has not updated income tax slabs or rates since 2020-21.

Image credits: Freepik

Expected tax changes

According to data, from 2020 to 2024, the share of corporation tax in direct taxes has consistently decreased while the proportion of personal tax has increased. 

Image credits: pinterest

Expected tax changes

Corporate tax accounted for 53% in 2020 but fell to 46.9% by 2024. In contrast, the share of personal tax climbed from 46.5% to 53.3%.

Image credits: Freepik

Expected tax changes

It is expected that this tendency will alter, with the share of personal taxes decreasing this time.

Image credits: Freepik

Expected tax changes

Previously, taxpayers could select between the old and new tax systems, but this time, the government may attempt to establish a balance between the two. 

Image credits: Freepik

Expected tax changes

Citizens with an annual income of Rs 3 lakh were exempt from tax under the new regime, whereas it was Rs 2.5 lakh in the previous regime. 

Image credits: pinterest

Expected tax changes

When the government proposes its budget this year, it is expected that up to Rs 3 lakh will remain tax-free under both tax regimes. 

Image credits: pinterest

Expected tax changes

The new rule should include an exemption for insurance sums above Rs 7 lakh.

Image credits: pinterest
Find Next One