Income Tax Budget 2024: Small tax relief measures likely in interim Budget
Income Tax Bidget 2024: Tweaks in certain income tax rates, especially for those at the bottom of the taxpayer pyramid, are expected.
All eyes are set on today’s interim Budget, the last one before the upcoming Lok Sabha elections as Union Finance Minister Nirmala Sitharaman is likely to roll out small tax measures to boost welfare spending.
Tweaks in certain income tax rates, especially for those at the bottom of the taxpayer pyramid, are expected. A hike in standard deduction along with a higher exemption limit to incentivise taxpayers to shift to the new income tax regime are likely.
Sitharaman, during the last Budget, had made five major announcements on personal income tax to benefit the middle class. She also said that while the new tax regime would be the default, tax payers could opt for the old one. Sitharaman proposed to raise the rebate limit from Rs 5 lakh to Rs 7 lakh in the new tax regime. Therefore, if an individual has opted for the new tax regime, he or she will not be required to pay any tax up to an annual income of Rs 7 lakh.
The lower tax regime for individuals was introduced in 2020 under Section 115BAC as a simpler alternative, without claiming any investment-related deductions or exemptions. This was expected to prove useful for individuals who were not in a position to invest and claim deductions. The new regime had more slabs than the previous one.
This year, while the revenue side of the Budget may see some tax cuts and efforts to increase efficient mobilisation, the focus of public expenditure is likely to be on infrastructure and welfare spending.
However, in the past, interim Budgets have not accounted for major changes. Ahead of the Lok Sabha elections in 2019, then Finance Minister Piyush Goyal had proposed a hike in standard deduction and the threshold for tax deducted at source, along with sops to farmers and pension cover for unorganised sector workers. Five years earlier in 2014, the Interim Budget by then Finance Minister P Chidambaram had announced a cut in excise duties for small cars, motorcycles, scooters and SUVs besides large and mid-segment cars, and tax relief for mobile handsets.
The Budget session of Parliament kicked off on January 31 and will continue till February 9. The Lok Sabha elections are expected to be held around April-May, following which the elected government is likely to present the full Budget in July.
All eyes are set on today’s interim Budget, the last one before the upcoming Lok Sabha elections as Union Finance Minister Nirmala Sitharaman is likely to roll out small tax measures to boost welfare spending.
Tweaks in certain income tax rates, especially for those at the bottom of the taxpayer pyramid, are expected. A hike in standard deduction along with a higher exemption limit to incentivise taxpayers to shift to the new income tax regime are likely.
Sitharaman, during the last Budget, had made five major announcements on personal income tax to benefit the middle class. She also said that while the new tax regime would be the default, tax payers could opt for the old one. Sitharaman proposed to raise the rebate limit from Rs 5 lakh to Rs 7 lakh in the new tax regime. Therefore, if an individual has opted for the new tax regime, he or she will not be required to pay any tax up to an annual income of Rs 7 lakh.
The lower tax regime for individuals was introduced in 2020 under Section 115BAC as a simpler alternative, without claiming any investment-related deductions or exemptions. This was expected to prove useful for individuals who were not in a position to invest and claim deductions. The new regime had more slabs than the previous one.
This year, while the revenue side of the Budget may see some tax cuts and efforts to increase efficient mobilisation, the focus of public expenditure is likely to be on infrastructure and welfare spending.
However, in the past, interim Budgets have not accounted for major changes. Ahead of the Lok Sabha elections in 2019, then Finance Minister Piyush Goyal had proposed a hike in standard deduction and the threshold for tax deducted at source, along with sops to farmers and pension cover for unorganised sector workers. Five years earlier in 2014, the Interim Budget by then Finance Minister P Chidambaram had announced a cut in excise duties for small cars, motorcycles, scooters and SUVs besides large and mid-segment cars, and tax relief for mobile handsets.
The Budget session of Parliament kicked off on January 31 and will continue till February 9. The Lok Sabha elections are expected to be held around April-May, following which the elected government is likely to present the full Budget in July.
