Union Budget 2024: 5 key income tax changes that citizens expect from FM Nirmala Sitharaman

On Tuesday, Finance Minister Nirmala Sitharaman will present the Budget 2024 in Parliament. This budget is eagerly awaited as it will outline the government’s economic plans and priorities for the coming year. Key areas of focus include income tax relief and supporting various economic initiatives while maintaining fiscal responsibility under the Viksit Bharat 2047 Vision.

Key Income Tax Changes Expected

1. One major expectation is an increase in the exemption limit under the new tax regime. Currently, the exemption limit is Rs 3 lakh. There is hope that this limit will be raised to Rs 5 lakh, providing significant relief to many taxpayers.

2. Another potential change is the adjustment of tax slabs. Currently, individuals earning between Rs 12-15 lakh annually are taxed at 20%, and those earning Rs 15 lakh and above are taxed at 30%. Many believe the 30% rate should apply only to those earning Rs 30 lakh per year, and the 20% rate should be revised for those earning Rs 9-12 lakh annually.

3. The current standard deduction is Rs 50,000. It is believed that this might be increased to Rs 1,00,000 to provide additional tax relief, allowing more savings for taxpayers.

4. Changes in capital gains tax are also anticipated. Investors have long sought a balanced approach to these taxes. Any adjustments could significantly influence market dynamics.

5. Overall, there is strong expectation that Budget 2024 will include measures to provide tax relief. The focus will likely be on encouraging consumption, and investing in infrastructure.