Budget 2024: 10 Income Tax Expectations from Finance Minister for Salaried Taxpayers
The new tax regime is being appreciated as it is devoid of tax exemptions and deductions. The expectations from Finance Minister Nirmala Sitharaman are to enhance the basic exemption limit in the new tax slabs and also the standard deduction threshold in the Union Budget 2024.
At present, the limit of basic exemption under the new income tax regime is Rs.3 lakh. The facility of a standard deduction of Rs.50,000 also exists in the new income tax regime as well as the old one.
Income Tax Expectations and Recommendations from Budget 2024 are as follows:
- The basic exemption limit should be increased from Rs.3 lakh to Rs.5 lakh in the new tax regime which lead to tax reduction.
- Reformation of the tax structure of capital gains, including changes to tax rates and computation methods.
- Increasing the standard deduction limit from Rs.50,000 to Rs.1,00,000.
- A deduction is to be increased with respect to the purchase of an EV (Electric Vehicles).
- Increase the previous limit for deducting interest on housing loans Rs.2 Lakhs to at least Rs.3 Lakhs for self-occupied house property.
- Add Tier 2 cities in the metro cities list for the calculation of HRA exemption. The Tier 2 cities include Bengaluru, Pune, Gurgaon, Ahmedabad and Hyderabad.
- The current tax-free LTCG limit should be increased from Rs.1 lakh to Rs.2 lakhs on the sale of equity shares/equity-oriented mutual funds/units of a business trust.
- The tax-free limit for gifts should be raised from Rs.50,000 to Rs.100000.
- Should eliminate the Rs.2 Lakhs cap limit on setting off the house property loss against other heads.
- Do let us know your opinion about the changes that need to be considered in the Union Budget 2024 by the Finance Minister.
