Budget 2024: The biggest question surrounding the government’s potential decision to lower taxes on middle-class citizens is whether Finance Minister Nirmala Sitharaman will address the budget in parliament today starting at 11 a.m. In an attempt to boost economic growth and relieve taxpayers at the same time, the finance minister will tread carefully.
The middle class had high expectations because they received little in the pre-election interim budget.
The following five tax laws are the main ones that will be discussed today:
Budget 2024: Limit of Exemption
A potential increase in the exemption limit is one of the main things that people are expecting from Budget 2024. Tax exemption is granted to anyone earning less than ₹ 3 lakh annually under the new tax regime. There are rumors that in Budget 2024, this cap might be increased to ₹ 5 lakh in order to reduce the tax burden on a substantial portion of Indians.
modifications to tax slabs
Over the past three Budgets, Nirmala Sitharaman has not declared any adjustments to the income tax slabs. The likelihood of the current tax regime’s tax slabs being rationalized is now very high. A reevaluation has been recommended by certain experts, who have asked for a severe tax rate of 20% for persons earning between ₹ 12-15 lakh yearly. In an effort to provide justice to the tax system, there are also proposals to limit the 30% tax rate to individuals making ₹30 lakh annually and to modify rates for lower income bands.
Average Deduction
An further much-awaited modification is a raise in the standard deduction, which is currently capped at ₹ 50,000. According to industry analysts, this amount might treble to ₹ 1,00,000, which would provide significant relief and lower tax obligations for those on salaries.
Reforms to the Capital Gains Tax
The Indian government is expected to meet different needs by corporations, entrepreneurs, and the financial markets. As part of pre-budget consultations, numerous people have addressed the administration, voicing their concerns and making presentations. Retail investors are keeping a close eye out for any changes that could have a big impact on market dynamics.
Entire Tax Relief Plan
The general anticipation for Budget 2024 is a comprehensive plan designed to strengthen the economy and provide tax relief. The government’s strategy is probably going to focus on encouraging consumer spending, upholding fiscal restraint, and making investments in vital industries like infrastructure to spur growth.
Infrastructure development has received a lot of attention from the Modi administration. The government has increased its projected capital expenditure (capex) from ₹ 9.5 lakh crore in the previous fiscal year to ₹ 11.1 lakh crore. The administration has been encouraging states to increase capital expenditures and pushing for the development of infrastructure.
Also Read | Budget 2024-2025: Nirmala Sitharaman to present Economic Survey today. Details inside
