Sun Feb 02 23:02:12 UTC 2025: ## Income Tax Slabs Relaxed: Middle Class Gets Major Relief in Budget 2024

**New Delhi:** Finance Minister Nirmala Sitharaman announced significant tax relief for the middle class in the Union Budget 2024. The new income tax regime will exempt income up to ₹12 lakh from tax. This effectively raises the tax-free threshold significantly higher when combined with the standard deduction. Individuals with an annual income of up to ₹12.75 lakh will not be liable for income tax.

The Finance Minister stated that the new tax regime prioritizes fairness and will provide the middle class with more disposable income, boosting domestic consumption, savings, and investment. The changes aim to substantially reduce the tax burden on this segment of the population.

Further adjustments were made to TDS (Tax Deducted at Source) thresholds to ensure uniformity. The TDS exemption limit for senior citizens has been increased from ₹50,000 to ₹1,00,000. The TDS exemption limit for rental income has also been raised to ₹6,00,000. However, higher TDS provisions will remain in place for non-PAN cases. The deadline for filing updated returns has been extended from two years to four years. These changes particularly benefit small taxpayers receiving rental income in smaller installments.

Previously, under the old regime, an individual with an annual income of ₹7.75 lakh (after deducting the standard deduction of ₹75,000) was not liable for tax. The new changes represent a substantial increase in the tax-free threshold.

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