Why Rs 24 lakh is not enough now?
The new regime has given many benefits, but the maximum tax rate of 30% may now seem heavy for many people. Living costs are increasing year after year, while tax slabs remain the same, due to which the effective tax burden also increases. Apart from this, professionals in metro cities soon cross the income of ₹ 24 lakh, due to which they soon get stuck in the higher tax slab. This rate may seem penal for those whose living quotes are higher. Also, many middle class taxpayers are excluded from PF and are also not covered under government health insurance schemes, hence it is important for them to have higher net earnings so that they can contribute to NPS or other retirement schemes.