Union Budget 2024: The exemption limit can be increased under the new tax system. Also, there may be a change in the tax slab rates under the old tax system. Apart from this, the exemption limit under Section 80C of Income Tax may also increase.
Union Budget 2024: The NDA government has been formed once again at the center and Budget 2024 is going to be presented next month i.e. in July. Finance Minister Nirmala Sitharaman is preparing the budget along with the officials. From poor families to the middle class, there are special expectations from this budget. It is especially believed that Finance Minister Nirmala Sitharaman can make some announcement regarding tax exemption in the budget.
Many experts also believe that the exemption limit can be increased under the new tax system. Also, there may be a change in the rates of tax slabs under the old tax system.
Apart from this, the exemption limit under Section 80C of Income Tax can also be increased, so that the middle class can be further motivated to invest. However, this announcement will be confirmed only at the time of Budget 2024. Related news
Tax limit on income may increase from Rs 3 lakh to Rs 5 lakh
Finance Minister Nirmala Sitharaman may increase the income limit for individuals before any tax from the current Rs 3 lakh to Rs 5 lakh in the upcoming budget. The government is trying to boost consumption for low-income individuals by bringing tax cuts in Budget 2024. A Moneycontrol report published on Business Today said that its aim is to increase disposable income, thereby boosting consumption and economic growth.
Those under the new tax system will get benefits
The report said that this exemption will apply only to those filing returns under the new tax system and its aim includes saving more especially for the low-income group. In the Union Budget 2023, Finance Minister Sitharaman made the new tax system the default tax system.
It was initially introduced in Budget 2020, which allowed taxpayers to choose it instead of the old tax regime, which is loaded with deductions and exemptions.
What will change in the tax slab?
The report further states that the Modi government 3.0 may reduce the highest personal income tax slab rate from 30 per cent to 25 per cent under the new tax regime, considering the request of the industry. 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.
