Income Tax Budget 2024 LIVE: The middle class and taxpayers are expected to get relief in the budget. Taxpayers can get gifts like changes in income tax slabs and increase in standard deduction. Finance Minister Nirmala Sitharaman can also make some big announcements to make the new income tax regime more attractive.
Tax exemption limit on savings account interest may be Rs 25000
Finance Minister Nirmala Sitharaman is going to present Budget 2024 shortly. The government may increase the tax exemption limit on savings account interest to Rs 25,000.
Income Tax Budget 2024 LIVE: Income tax slab in old tax regime
Currently, under the old income tax regime, taxpayers are not required to pay any tax on income up to Rs 2.5 lakh.
– There is a tax rate of 5% on income from Rs 2.5 lakh to Rs 5 lakh.
– There is a tax rate of 20% on income from Rs 5 lakh to Rs 10 lakh.
– There is a tax rate of 30% on income above Rs 10 lakh.
Tax exemption limit may increase in 80C
Finance Minister Nirmala Sitharaman may increase the scope of exemption under section 80C in her seventh budget. Currently, taxpayers get exemption of up to Rs 1.5 lakh under 80C. The deduction limit can also be increased under 80D. Currently, individuals get the benefit of exemption of Rs 25000 and senior citizens get the benefit of exemption of up to Rs 50000 under 80D.
NPS may come in the new income tax regime
There may also be announcements in Budget 2024 to promote the National Pension System (NPS). Tax benefits can be given on employee contributions made to NPS in the new income tax regime.
Taxpayers are expecting big relief from FM
In Budget 2024, taxpayers are hoping that a 30% income tax rate can be introduced for income and salary levels above Rs 20 lakh. If the Finance Minister makes an announcement related to this in Budget 2024, then the middle class will have more cash in their hands.
Can taxpayers get double happiness?
Can Finance Minister Nirmala Sitharaman increase both the standard deduction limit and the basis exemption limit in Budget 2024? Experts say that some populist announcements can be made in Budget 2024. However, taxpayers should not expect much change.
Basic exemption limit may increase in the new tax regime
The basic exemption limit can be increased in the new income tax regime. To make the new tax regime attractive, the basic exemption limit was increased to Rs 3 lakh in Budget 2023, which was earlier Rs 2.5 lakh. Experts hope that in Budget 2024, the basic exemption limit in the new tax regime can be increased by another Rs 50,000 to Rs 3.5 lakh.
Standard deduction is currently Rs 50,000 in new and old tax regime
Currently, taxpayers in both the new and old income tax regimes get a standard deduction of Rs 50,000. Standard deduction is a flat deduction available to the salaried class. It was last revised in the year 2019.
