Taxpayers are looking forward to the government addressing the shortcomings of the new tax regime introduced in Budget 2023.
Finance minister Nirmala Sitharaman will be presenting the Union Budget 2024 on July 23. Ahead of the budget speech, the annual economic survey will be presented on July 22. The Union Budget comes after the interim budget, which was presented on February 1, before the Lok Sabha elections 2024. Hence, it will be the first budget of the new government as PM Narendra Modi-led NDA government came to power, and also Nirmala Sitharaman seventh consecutive budget presentation.
Meanwhile, ahead of it, the salaried taxpayers have huge expectations from Budget 2024, and if substantial tax reforms are provided, it will offer relief and boost savings for taxpayers. Check out some of the expectations of salaried class from upcoming Budget 2024 and FM Nirmala Sitharaman:
One of the major demands of the taxpayers from the upcoming budget is the potential decrease in taxes. Considering that inflation and rising prices continue to affect the middle class, it is vital that the government takes necessary steps to ease their financial burden. The income tax slab too needs a revision in order to lower tax obligations.
It was last year that FM Sitharaman amped up the threshold for income-tax rebates from Rs 5 lakh to Rs 7 lakh for those opting for the new direct tax regime. The basic exemption limit was increased to Rs 3 lakh from Rs 2.5 lakh earlier. A deduction of Rs 15,000 for a family pension was also introduced. For salaried individuals, pensioners and family pensioners, the standard deduction clause was part of the new tax regime. However, in the old tax regime, they faced a standard deduction of Rs 50,000.
The government has set different taxation slabs for different types of assets, and they are also classified as short-term or long-term. However, with the upcoming budget, taxpayers are demanding a revision in the capital gain tax system.
The New Tax Regime featured changed tax slabs and concessional tax rates, and it was applicable to all taxpayers, including individuals, Hindu Undivided Families (HUFs), and Association of Persons (AOPs). However, there have been demands to have more benefits under the New Tax Regime.
At present, for those opting for the New Tax Regime, there is no provision to avail deduction under Section 80CCD (1B) as part of contribution of Rs 50,000 to the National Pension System (NPS). Now there is a demand that it should be brought back in the budget for FY25, and the limit should be increased to Rs 1,00,000, under both the tax regimes.
