An image showing a Rs 500 note and the word 'Tax'.
Credit: iStock Photo
Finance Minister Nirmala Sitharaman will present the Union Budget on July 23, having already presented an Interim Budget ahead of the Lok Sabha elections. In light of the upcoming Budget, we take a look at some trivia.
Since India's Independence, finance ministers of different ruling parties have presented the Union Budget, to the cheer and chagrin of all. Over the years, various governments have also introduced various changes to the tax slabs.
In the Union Budget for 1955-56, the then Finance Minister C D Deshmukh, proposed different tax-exempt slabs for married and unmarried Indians as part of a plan to create a suitable scheme of family allowances. It was also the first time the Hindi version of the Budget scheme was introduced.
Since then, Hindi versions of the Annual Financial Statement, and the Explanatory Memorandum have been circulated.
In the 1950s, the wealth tax was introduced in the Union Budget. Alongside it, the maximum rate of income tax was reduced from five annas to four annas.
During the Union Budget of 1955-56, Deshmukh had said, "In accordance with the recommendations of the Commission, the present tax-exempt slab of Rs 1,500 is being raised to Rs 2,000 for married persons and reduced to Rs 1,000 for unmarried persons. This is the first move in the direction of evolving a suitable scheme of family allowances, which the Commission have suggested for implementation. The net loss of revenue is estimated at Rs 90 lakhs."
Income Tax Slabs for Married Individuals for the Financial Year 1955-1956:
1. Rs 0 to 2,000 Tax Slab – Payable: No Income Tax payable
2. Rs 2,001 to 5,000 Tax Slab – Income Tax Rate Payable: Nine Pies in the Rupee
3. Rs 5,001 to 7,500 Tax Slab – Income Tax Rate Payable: One Anna and Nine Pies in the Rupee
4. Rs 7,501 to 10,000 Tax Slab – Income Tax Rate Payable: Two Annas and Three Pies in the Rupee
5. Rs 10,001 to 15,000 Tax Slab – Income Tax Rate Payable: Three Annas and Three Pies in the Rupee
6. Rs 15,001 and above – Income Tax Rate Payable: Four Annas in the Rupee
Income Tax Slabs for Unmarried Individuals for the Financial Year 1955-1956:
1. Rs 0 to 1,000 – Income Tax Rate Payable: No Income Tax
2. Rs 1,001 to 5,000 – Income Tax Rate Payable: Nine Pies in the Rupee
3. Rs 5,001 to 7,500 – Income Tax Rate Payable: One Anna and Nine Pies in the Rupee
4. Rs 7,501 to 10,000 – Income Tax Rate Payable: Two Annas and Three Pies in the Rupee
5. Rs 10,001 to 15,000 – Income Tax Rate Payable: Three Annas and Three Pies in the Rupee
6. Rs 15,001 and above – Income Tax Rate Payable: Four Annas in the Rupee
Conditions:
1. Provided that no income-tax shall be payable on a total income which, before deduction of allowance, if any, for earned income, does not exceed Rs 4,200.
2. The income-tax payable shall in no case exceed half the amount by which the total income (before deduction of the said allowance, if any, for earned income) exceeds Rs 4,200.
3. The income-tax payable on the total income as reduced by the allowance for earned income shall not exceed either –
(a) A sum bearing to half the amount by which the total income (before deduction of the allowance for earned income) exceeds Rs 4,200, the same proportion as such reduced total income bears to unreduced total income, or
(b) The income tax payable on the income so reduced at the rates herein specified, – whichever is less.
Union Budget 2024 | Making a record for any Finance Minister, Nirmala Sitharaman will be presenting her 7th Union Budget on July 23, 2024 under the Modi 3.0 government. While inflation has burnt a hole in the pockets of 'aam janata', will this Budget spell relief for Indians? Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.