Finance Minister Nirmala Sitharaman may increase income tax exemption limit in the upcoming Budget 2024 which is the first for the third term of the PM Modi Government. News agency Reuters reported that the first full-fledged Budget 2024 of Modi 3.0 may relieve taxpayers as the government is considering reducing income tax rates for specific groups of individuals.
The government may also lower income tax rates for individuals earning annual incomes of ₹10 lakh.
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Quoting government officials, Moneycontrol reported that the Centre plans to raise the income threshold before any tax is levied from ₹3 lakh to ₹5 lakh in the budget. This change may apply only to those filing returns under the new tax regime, the report added.
What experts said on Budget 2024?
Aarti Raote, Partner, Deloitte India, said as per Mint, “In the past, few tax breaks/ incentives have been extended to individual taxpayers except under the new tax regime. Hence, many believe that this year, the government should at least raise the exemption slab rates for individuals to about ₹5 lakh.”
What about revision in section 80C limit
Revision in the section 80C limit has remained unchanged since 2014 despite rising inflation rates but Clear founder and CEO Archit Gupta said as per Mint, “This would not only help taxpayers combat inflation but also stimulate savings and investments in key financial instruments like ELSS, tax saver FDs, PPF, etc., aligning with the broader vision of a financially robust and prosperous India.”
