Budget 2024: As the Union Budget 2024 approaches, all eyes are on Finance Minister Nirmala Sitharaman, who is getting ready to unveil it on July 23. Being the first of the Modi 3.0 administration, this budget is particularly important. Salaried Individuals and those in other industries are all eagerly awaiting positive announcements, and the anticipation is palpable. Leading economists and Finance Minister Nirmala Sitharaman recently met PM Modi to discuss important details about the upcoming budget.
Expectations of Salaried Taxpayers
As the first budget of the Modi 3.0 administration, many experts believe that Finance Minister Nirmala Sitharaman may announce significant measures across various sectors. Salaried taxpayers, in particular, have several expectations:
Hopes High for Standard Deduction Hike
Currently, taxpayers can avail a standard deduction of up to ₹50,000. There is speculation that the government may increase this limit to ₹1 lakh. If implemented, this would provide considerable relief to taxpayers.
Deductions Under the New Tax Regime
Under the new tax regime, several deductions and exemptions have been removed. Experts suggest that to make this regime more attractive, it is necessary to retain benefits such as exemptions for House Rent Allowance (HRA), interest paid on home loans, and contributions to Provident Fund (PF) and health insurance.
Children’s Education Allowance
Presently, taxpayers can claim an allowance of ₹100 per month per child for education and ₹300 per month per child for hostel expenses, applicable to up to two children. Given the rising cost of education, there is a strong call to increase these limits.
Revisiting Tax Slabs
Under the old tax regime, no tax is levied on income up to ₹2.5 lakh. In the new tax regime, this limit is ₹3 lakh. Many taxpayers are advocating for an upward revision of these tax slabs to ease their financial burden.
Nirmala Sitharaman to Present Budget 2024 on July 23
The previous budget, which was only in effect for a few months, was the interim budget that Nirmala Sitharaman delivered prior to the Lok Sabha elections. This will be Nirmala Sitharaman’s first full-fledged budget under Modi 3.0, now that a new government has taken office. It will be interesting to watch what budgetary measures she announces for the general public.
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