Top 10 Income Tax Expectations From Budget 2024: From New Income Tax Regime Slab Changes To Hike In Standard Deduction, Section 80C - Check List

Income Tax Budget 2024 Expectations: Will FM Nirmala Sitharaman provide a big income tax relief to middle class, salaried taxpayers in Budget 2024? From a change in tax slabs and tax rates under the new income tax regime to raising the standard deduction limit and changes in Section 80C limits - the common man has several expectations from the Union Budget 2024. This will be the first full budget of the Modi 3.0 government, and personal experts are anticipating major changes in income tax to bring relief to taxpayers. We take a look at the top 10 income tax expectations from Budget 2024 for middle class and salaried taxpayers: (AI image)

Income Tax Budget 2024: To incentivize switching to the new income tax regime, experts say that the income tax rates and the income tax slabs should be rationalized further. For example, most experts feel that the 30% tax slab should kick in at an income of above Rs 20 or Rs 25 lakh instead of Rs 15 lakh at present.

Income Tax Budget 2024: Personal tax experts say that the basic exemption limit under the new income tax regime should be raised from the present Rs 3 lakh to Rs 5 lakh to drive more adoption towards the new regime versus the old regime. Some experts even advocate the limit for tax rebate be increased from Rs 7 lakh to Rs 8 lakh. (AI image)

Income Tax Budget 2024: The unanimous opinion of personal tax experts is that the standard deduction limit of Rs 50,000, which was introduced in the new tax regime last year, should be hiked to Rs 1 lakh. This is also important since the standard deduction limit has remained unchanged since 2029-20. (AI image)

Income Tax Budget 2024: Yet another expectation is for the inclusion of Section 80C exemption under the new income tax regime. Further, since this limit has remained unchanged at Rs 1.5 lakh since 2014, the ask is that this be raised to Rs 3 lakh to incentivise savings. (AI image)

Income Tax Budget 2024: There is an ask to increase the existing limit for deduction towards interest on housing loan for self-occupied house property from Rs 2 lakh to at least Rs 3 lakh. (AI image)

Income Tax Budget 2024: Tax experts are of the opinion that the current limit of Rs 10,000 exemption for interest on bank deposits is too low and needs to be hiked. Additionally term deposits and fixed deposits too should be considered under this limit. (AI image)

Income Tax Budget 2024: Salaried taxpayers want an increase in the health insurance premium deduction under Section 80D from the current limit of Rs 25,000 to Rs 50,000 or even Rs 1 lakh. This adjustment would provide relief to taxpayers and incentivize them to prioritize their health, which is crucial in the current times. (AI image)

Income Tax Budget 2024: Online grievance redressal mechanism for income tax return filing needs to be made easier, say experts. Also the income tax filing process can be simplified further, they say. (AI image)

Income Tax Budget 2024: The government is aware of the complexity in the capital gains tax structure, which currently lacks consistency in tax rates and holding periods for different instruments within the same asset class, say experts. Additionally, the indexation benefit varies in different situations. There may be an indication of a simplified capital gains tax regime, potentially including changes in tax rates and computation methods, they say. (AI image)

Income Tax Budget 2024: In Budget 2023, the TCS rate was increased from 5% to 20% for certain transactions to curb the outflow of foreign exchange. However, this steep hike has significantly impacted many individuals, including employees. The 20% TCS on amounts sent abroad exceeding 7 lakhs to maintain is creating substantial cash flow issues. Experts advocate reducing the TCS rate from 20% to 10%. (AI image)