As the nation awaits the unveiling of Budget 2024, the Modi government is poised to introduce potential tax concessions, with speculation rife about an increase in the tax rebate limit to a generous Rs 7 lakh.
Taxpayers, particularly the salaried and middle classes, are eagerly anticipating special relaxations in the upcoming budget, which marks Finance Minister Nirmala Sitharaman’s final budget presentation for the current term.
Focus on Taxpayer Concerns:
With the Lok Sabha elections scheduled after the budget presentation, the government is likely to turn its attention towards capitalizing on its vote bank, specifically targeting the salary class and the middle class.
Addressing the concerns of the salaried class, who seek to maximize their tax savings, the government aims to make strategic announcements that resonate with taxpayers’ expectations.
Potential Increase in Rebate for Old Tax Regime:
In the last budget, Nirmala Sitharaman declared that taxpayers in the new tax regime with an annual income of up to Rs 7 lakh would be exempt from paying taxes, raising the rebate limit from Rs 5 lakh.
However, this adjustment did not extend to the old income tax regime. There is anticipation that the upcoming budget might bridge this gap by increasing the tax rebate limit in the old tax regime from Rs 5 lakh to Rs 7 lakh.
Relief for Employed Individuals:
As the Lok Sabha elections pave the way for a new government, questions loom over the relief measures for employed individuals in the budget for the financial year 2024-25.
Scheduled for presentation on February 1, 2024, the interim budget will reveal whether significant announcements catering to the salary class will be made.
Despite Finance Minister Nirmala Sitharaman’s statement about no major budgetary overhauls, expectations persist that the government may extend relief to small taxpayers, marking a potential highlight in the final budget presentation on February 1, 2024.
