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Union Budget 2025: More exemption was given for two children; Different taxes for married bachelors, know more here...

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The first budget of independent India was presented on 16 November 1947. It was presented by the country's first Finance Minister RK Shanmukham Chetty. However, it was a kind of review report of the Indian economy. In the subsequent budget, the details of income and expenditure started being given by the central government. A part of the government's income comes from income tax. This tax has to be paid by the people of the country to the government from their earnings. At the time of independence, only income up to Rs 1500 was tax-free in the country. After that, many changes were made in the income tax system from time to time.

There was a time in the country when it was decided how much tax a person would have to pay on the basis of the number of children. The history of income tax in the country has been interesting in many other ways as well. Let us know how much income tax has changed after independence.

Income up to Rs 7 lakh 75 thousand is tax-free for salaried people.

After the announcements made by the Finance Minister in the Union Budget 2024-25, if the annual income of a salaried taxpayer is up to Rs 7 lakh 75 thousand, he does not have to pay income tax. Because after deducting Rs 75,000 of the standard deduction, his income remains Rs 7 lakh. In such a situation, he does not have to pay any tax, because, under the new tax regime, the government has made income up to seven lakh rupees tax-free. This means that if a person's monthly salary is around Rs 64000 or Rs 64500, then he does not need to pay any income tax in the new tax system.

Demand is being made by the Finance Minister to make income up to Rs 10 lakh tax-free

In the Union Budget 2025, experts have appealed to the Finance Minister to keep income up to Rs 10 lakh out of the tax purview. In the budget speech for 2023-24, Finance Minister Nirmala Sitharaman announced to increase in the scope of income tax for individual taxpayers. The scope of income tax was increased from Rs 5 lakh to Rs 7 lakh (under the new tax regime). During this period, the super-rich tax was also reduced to 37 percent. At the same time, the facility of live encashment for retired personnel was increased from Rs 3 lakh to Rs 25 lakh.

The new tax regime made a default in the financial year 2023-24

Last year, the new tax regime has been made default. The new tax system was implemented by the central government on April 1, 2020. New tax slabs were created in the new tax system i.e. the new tax regime, but all the deductions and exemptions available in income tax were abolished. Since independence in India, different governments have made many changes in the matter of income tax. These changes have had a direct impact on the common man because income tax is the amount that a person has to save from his hard-earned money and pay it to the government.

When the country became independent, income up to Rs 1500 was tax-free

The first budget of independent India was presented on 16 November 1947. It was presented by the country's first Finance Minister RK Shanmukham Chetty. However, it was a kind of review report of the Indian economy. When the first budget of the country was presented, at that time income up to Rs 1500 was tax free in the country. In the budget presented by the Modi government in 2023, this limit was increased to Rs 7 lakh (under the new tax regime).

There was a provision for different taxes for married and unmarried people.

In 1955, for the first time in the country, separate tax-free income was kept for married and unmarried people to increase the population. Under this, married people did not have to pay any tax on income up to Rs 2000. For bachelors, this limit was only Rs 1000.

India became the first country to give tax exemption on increasing population.

India became the only country in the world to give income tax exemption on the basis of number of children in 1958. If a married person does not have a child, then he did not have to pay tax on income up to Rs 3000. But, for people with one child, income up to Rs 3300 and for people with 2 children, income up to Rs 3600 was tax free.

At one time, Rs 97.75 was taxed on earning Rs 100

In 1973-74, the income tax rate in India was the highest. At that time, the maximum rate of income tax collection was 85 percent. Including the surcharge, this rate reached 97.75 percent. After earning Rs 2 lakh, out of every Rs 100 earned, only Rs 2.25 went into the pocket of the earner. The remaining Rs 97.75 was kept by the government. However, in the later period, various governments took major steps to reduce the burden of income tax on people. Currently, two tax regimes of income tax are in force in the country. Under the new tax regime, income of about Rs 7 lakh 75 thousand is out of the scope of tax for salaried people.

Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.