THIRUVANANTHAPURAM: Extensive changes will begin in the economic sector on Tuesday when the central and state budget announcements come into effect. According to the new scheme in the Union Budget presented by Finance Minister Nirmala Sitharaman, those with income up to Rs 12 lakh will not have to pay income tax. The Rs 12 lakh limit will not apply to income from areas where special rates have been fixed.

Land tax slabs in Kerala will increase by 50 percent. Land lease rates have also been revised. The wages of daily wage contract employees will increase by five percent. Court fees will also increase. Taxes on electric vehicles will be rearranged.

Tourist bus fares will increase as the tax structure for contract carriage is consolidated. Vehicles older than 15 years will have a 50% tax increase. The National Highways Authority of India has also increased the toll rates for vehicles. The increase is Rs 5 for cars and Rs 15 for large vehicles. At the same time, automobile companies have decided to increase car prices by two to four percent.

The Centre has also changed the income tax slabs for those in the new scheme. The rebate under Section 87A has been increased from Rs 25,000 to Rs 60,000 in the budget, which means that income up to Rs 12 lakh will be exempt from tax. Investors will have the opportunity to store investment information in stocks and mutual funds in DigiLockers from April 1. They will also be able to appoint nominees to access the data.

TDS will be exempted up to Rs 50,000 for ordinary citizens and up to Rs 1 lakh for senior citizens on interest income. The TDS limit for rental income has been increased from Rs 2.4 lakh to Rs 6 lakh. A Unified Pension Scheme will be implemented for central government employees under the National Pension System (NPS). This scheme guarantees a pension based on the length of service. Those with a minimum of 25 years of service will receive a pension of 50% of the average basic salary earned in the last 12 months.