BIG RELIEFE IN BUDGET 2024: The NDA government has been formed again at the Centre and Budget 2024 will be presented in July. In such a situation, everyone’s eyes are on Finance Minister Nirmala Sitharaman what will be special in the budget this time.
From poor families to the middle class, everyone has special expectations from this budget. It is especially believed that Finance Minister Nirmala Sitharaman can make a big announcement regarding tax exemption in the budget.
Hope for an Increase in Tax Exemption Limit
Many experts also believe the exemption limit can be increased under the new tax system. There can be a update in the rates of tax slabs under the previous tax system.
Apart from this, the exemption limit under Section 80C of Income Tax can also be increased, so the middle class can be further encouraged to invest.
In the upcoming budget, Finance Minister Nirmala Sitharaman may increase the income limit for individuals before any kind of tax is levied from the current Rs 3 lakh to Rs 5 lakh.
The government is trying to boost spending for low-income individuals by bringing in tax cuts in Budget 2024.
A Moneycontrol report published on Business Today states that the aim is to increase disposable income, thereby boosting consumption and economic growth.
Those Under New Tax System to Benefit
The report said that this exemption will apply only to those filing returns under the new tax system and is aimed at promoting savings, especially for the low-income group.
In the Union Budget 2023, Finance Minister Sitharaman made the new tax system the default tax system. It has initially produced in Budget 2020, which allowed taxpayers to select it instead of the previous tax regime, which has loaded with deductions and exemptions.
What Changes in Tax Slabs
The report further states that the Modi government 3.0 may reduce the highest personal income tax slab rate from 30 percent to 25 percent under the new tax regime, keeping in mind the request of the industry.
However, the official said that there is no possibility of change in the higher income tax slab, as there is currently a need to boost consumption for the lower income group people.
