New Delhi:
As the anticipation builds for the Interim Budget 2024, tax experts are calling for a nuanced approach that delicately balances fiscal stability with measures to invigorate economic activity.
Foreseeing a conservative stance, experts predict gradual adjustments in income tax brackets.
They emphasize the urgent need for simplifying the Goods and Services Tax (GST) framework while seeking clarity on long-term capital gains tax, especially regarding investments in high-value properties and renewable energy.
Budget 2024 is poised to address complexities in classifying income derived from stock market transactions, aiming to streamline the process for taxpayers.
The focus lies on simplifying tax treatments across various asset classes, potentially unifying tax rates for long-term and short-term assets.
This move aims not only to offer clarity but also to create a more user-friendly taxation system, enhancing both efficiency and transparency.
Additionally, there’s a strong push to establish equity in deductions within the revamped tax structure.
While deductions are currently available for National Pension Scheme (NPS) investments, experts advocate for similar benefits to be extended to premiums paid for medical insurance policies or specified medical expenses.
This inclusion aims to create a fairer and more comprehensive system, catering to diverse taxpayer needs.
Stability remains a key concern in the tax regime during this interim period.
As the complete FY24-25 Budget is expected post-elections, there’s an anticipation that it may address immediate tax-related issues while maintaining a sense of continuity.
Taxpayers and businesses are urged to remain adaptable, considering the evolving economic and political landscape.
Moreover, the hope lingers for progress on the long-awaited Direct Tax Code, perceived as a catalyst for significant reforms that could simplify the taxation system upon its eventual implementation.
The upcoming presentation of the Interim Budget by Finance Minister Nirmala Sitharaman is expected to be understated, aligning with the proximity of the Lok Sabha elections.
Following these elections,
the comprehensive Budget will be presented after the formation of the new government, likely to delve deeper into policy announcements and economic strategies.
