Finance Minister Nirmala Sitharaman will on Tuesday present the Union Budget 2024. All eyes will be on whether FM Sitharaman provides the much-expected tax relief for the middle class, leaving more money in their hands, as there is tax buoyancy. The government can make a special announcement regarding tax in the budget. Also, there may be an announcement on Standard Deduction and Section 80C. Experts are hopeful that there may be a change in the tax slab in this year's budget. This will be her 7th straight Budget.
The BJP government had increased the standard deduction to Rs 40,000 per annum in the 2018 budget. After this, in the interim budget of 2019, the limit of standard deduction was increased to Rs 50,000 per annum. Since then, there has been no change in the standard deduction. In such a situation, it is expected that in this time's budget, the government can increase the standard deduction. It is estimated that the standard deduction can be increased from Rs 50,000 to Rs 1 lakh annually.
Who will get the benefit of a standard deduction?
This standard deduction can be increased for both new and old tax regimes. A standard deduction can be claimed by persons receiving salary or pension, which does not include business owners. However, apart from standard deductions, the government can also announce tax exemptions. It is expected that the government can make changes in the tax slab.
Basic tax exemption can be increased from Rs 3 lakh to Rs 5 lakh
The middle class says that the limit of basic tax exemption should be increased from Rs 3 lakh to Rs 5 lakh. So that maximum tax relief can be provided. Changes are expected under the new and old tax system. There is also a demand to increase the limit of tax exemption from Rs 1.5 lakhs to Rs 2 lakhs under section 80C of the Income Tax Department.
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