Income Tax Expectations Budget 2024: Finance Minister Nirmala Sitharaman will current the Union Budget 2024 on July 23, 2024 and the Budget is being checked out for aid to salaried, middle class taxpayers and additionally the common man.
What can you count on from the Modi 3.0 authorities’s Budget 2024? What are the highest expectations from an revenue tax perspective and what do the specialists suggest? We have a look:
1.Changes in New Income Tax regime: The new revenue tax regime may very well be made extra engaging by rationalizing the revenue tax charges and slabs, in line with specialists. They counsel that the 30% tax slab ought to be relevant for incomes above Rs 20 or Rs 25 lakh, as an alternative of the present Rs 15 lakh threshold.
2. Section 80C: One of the expectations is the inclusion of Section 80C exemption underneath the brand new revenue tax regime. Additionally, because the restrict of Rs 1.5 lakh has not been revised since 2014, there’s a request to extend it to Rs 3 lakh to encourage financial savings.
Also Read | How can Budget 2024 make the brand new revenue tax regime extra engaging for salaried taxpayers? Top factors from TOI Online tax specialists’ survey
3. Standard Deduction: Personal tax specialists unanimously agree that the usual deduction restrict of Rs 50,000, launched within the new tax regime final yr, ought to be elevated to Rs 1 lakh. This revision is especially essential as the usual deduction restrict has not been up to date because the monetary yr 2019-20.
4. Basic Exemption Limit: To encourage extra taxpayers to decide for the brand new revenue tax regime, private tax specialists suggest rising the fundamental exemption restrict from Rs 3 lakh to Rs 5 lakh. Additionally, some specialists suggest elevating the restrict for tax rebate from Rs 7 lakh to Rs 8 lakh.
5. Section 80TTA for financial institution curiosity: Tax specialists imagine that the present exemption restrict of Rs 10,000 for curiosity on financial institution deposits is inadequate and ought to be elevated. Moreover, they counsel that time period deposits and fastened deposits also needs to be included underneath this restrict.
6. Section 80D for medical insurance: Salaried taxpayers are requesting a rise within the medical insurance premium deduction underneath Section 80D from the present restrict of Rs 25,000 to Rs 50,000 and even Rs 1 lakh. This change would provide aid to taxpayers and inspire them to prioritize their well being, which is particularly essential within the current circumstances.
Also Read | Income Tax Expectations Budget 2024: What are the best new tax regime slabs, charges for middle class, salaried? TOI Online Survey findings
7. Housing Loan Deductions: There is a requirement to lift the present restrict for deduction on curiosity paid in direction of housing mortgage for self-occupied home property from Rs 2 lakh to a minimal of Rs 3 lakh. One ask can be to incorporate this underneath the brand new tax regime.
8. Rationalize capital positive aspects tax construction: Experts notice that the federal government acknowledges the intricacies within the present capital positive aspects tax construction, which suffers from inconsistencies in tax charges and holding intervals for numerous devices throughout the identical asset class. Moreover, the indexation profit isn’t uniformly utilized throughout totally different situations. They anticipate that the federal government could suggest a streamlined capital positive aspects tax regime, probably involving changes to tax charges and computation strategies.
9. TCS on LRS transactions: In Budget 2023, the TCS price was elevated from 5% to twenty% for sure transactions to curb the outflow of overseas alternate. However, this sharp improve has had a big influence on many people, together with workers. The 20% TCS on quantities despatched overseas exceeding 7 lakhs for upkeep functions is inflicting substantial money stream issues. Experts suggest decreasing the TCS price from 20% to 10% to alleviate this burden.
10. Streamline e-filing: Experts counsel that the net grievance decision system for revenue tax return submitting ought to be streamlined to make it extra user-friendly. They additionally suggest additional simplifying the revenue tax submitting course of to ease the burden on taxpayers.
What can you count on from the Modi 3.0 authorities’s Budget 2024? What are the highest expectations from an revenue tax perspective and what do the specialists suggest? We have a look:
1.Changes in New Income Tax regime: The new revenue tax regime may very well be made extra engaging by rationalizing the revenue tax charges and slabs, in line with specialists. They counsel that the 30% tax slab ought to be relevant for incomes above Rs 20 or Rs 25 lakh, as an alternative of the present Rs 15 lakh threshold.
2. Section 80C: One of the expectations is the inclusion of Section 80C exemption underneath the brand new revenue tax regime. Additionally, because the restrict of Rs 1.5 lakh has not been revised since 2014, there’s a request to extend it to Rs 3 lakh to encourage financial savings.
Also Read | How can Budget 2024 make the brand new revenue tax regime extra engaging for salaried taxpayers? Top factors from TOI Online tax specialists’ survey
3. Standard Deduction: Personal tax specialists unanimously agree that the usual deduction restrict of Rs 50,000, launched within the new tax regime final yr, ought to be elevated to Rs 1 lakh. This revision is especially essential as the usual deduction restrict has not been up to date because the monetary yr 2019-20.
4. Basic Exemption Limit: To encourage extra taxpayers to decide for the brand new revenue tax regime, private tax specialists suggest rising the fundamental exemption restrict from Rs 3 lakh to Rs 5 lakh. Additionally, some specialists suggest elevating the restrict for tax rebate from Rs 7 lakh to Rs 8 lakh.
5. Section 80TTA for financial institution curiosity: Tax specialists imagine that the present exemption restrict of Rs 10,000 for curiosity on financial institution deposits is inadequate and ought to be elevated. Moreover, they counsel that time period deposits and fastened deposits also needs to be included underneath this restrict.
6. Section 80D for medical insurance: Salaried taxpayers are requesting a rise within the medical insurance premium deduction underneath Section 80D from the present restrict of Rs 25,000 to Rs 50,000 and even Rs 1 lakh. This change would provide aid to taxpayers and inspire them to prioritize their well being, which is particularly essential within the current circumstances.
Also Read | Income Tax Expectations Budget 2024: What are the best new tax regime slabs, charges for middle class, salaried? TOI Online Survey findings
7. Housing Loan Deductions: There is a requirement to lift the present restrict for deduction on curiosity paid in direction of housing mortgage for self-occupied home property from Rs 2 lakh to a minimal of Rs 3 lakh. One ask can be to incorporate this underneath the brand new tax regime.
8. Rationalize capital positive aspects tax construction: Experts notice that the federal government acknowledges the intricacies within the present capital positive aspects tax construction, which suffers from inconsistencies in tax charges and holding intervals for numerous devices throughout the identical asset class. Moreover, the indexation profit isn’t uniformly utilized throughout totally different situations. They anticipate that the federal government could suggest a streamlined capital positive aspects tax regime, probably involving changes to tax charges and computation strategies.
9. TCS on LRS transactions: In Budget 2023, the TCS price was elevated from 5% to twenty% for sure transactions to curb the outflow of overseas alternate. However, this sharp improve has had a big influence on many people, together with workers. The 20% TCS on quantities despatched overseas exceeding 7 lakhs for upkeep functions is inflicting substantial money stream issues. Experts suggest decreasing the TCS price from 20% to 10% to alleviate this burden.
10. Streamline e-filing: Experts counsel that the net grievance decision system for revenue tax return submitting ought to be streamlined to make it extra user-friendly. They additionally suggest additional simplifying the revenue tax submitting course of to ease the burden on taxpayers.
