Budget 2024: With the impending Interim Budget 2024 set to be unveiled by Finance Minister Nirmala Sitharaman, the middle class eagerly awaits potential income tax revisions. Here’s what’s on the horizon:
Potential Changes in Income Tax Slabs
Expectations run high for a revamp in income tax exemption limits, potentially soaring from ₹2.5 lakh to ₹5 lakh. The revision aims to alleviate the tax burden on the middle class. Notable changes in the tax slabs include:
- No tax on income up to ₹3 lakh
- 5% tax for income between ₹3-6 lakh
- 10% tax for income between ₹6-9 lakh
- 15% tax for income between ₹9-12 lakh
- 20% tax for income between ₹12-15 lakh
- 30% tax for income above ₹15 lakh
Increase Section 80C Limit
Anticipations are rife for an elevation in the investment deductions limit under Section 80C, currently fixed at ₹1.5 lakh. This enhancement would bolster tax savings and investment opportunities, crucial for financial growth.
Raising Standard Deduction
Calls for an escalation in the standard deduction from ₹50,000 to ₹1 lakh echo amidst mounting medical and fuel expenses. An amplified standard deduction would alleviate financial strain on taxpayers.
Relief Measures for Homebuyers
Proposals advocate for a separate deduction for home loan repayments under Section 80C, distinct from other eligible expenses. Such a provision would alleviate the burden on taxpayers while facilitating homeownership aspirations.
Enhanced 80D Deduction Limit
To combat soaring healthcare costs, there’s a plea to augment the deduction limit under Section 80D for medical insurance premiums. The proposed increase, from ₹25,000 to ₹50,000 for individuals and ₹50,000 to ₹75,000 for senior citizens, aims to promote affordable healthcare access.
As Budget 2024 looms, these anticipated reforms could redefine tax structures and alleviate financial constraints for the middle class.
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