Key Expectations of Personal Income-Tax Payers from Interim Budget 2024
As we eagerly await the unveiling of the interim budget on February 1, 2024, all eyes are on the potential adjustments to personal income tax, a topic that captures the attention of every hardworking individual. The government’s approach to income tax, a mandatory contribution from every earning member, is often a pivotal aspect of budgetary discussions.
The upcoming interim budget is poised to be an eagerly anticipated affair. Each year, there is a sense of optimism among Indians, who eagerly anticipate additional exemptions and opportunities to reduce their income tax burden. Concurrently, the government, having introduced a new tax regime, is expressing a strong inclination towards transitioning to a system without any exemptions.
Let us now delve into the key tax benefits the personal income tax payers can expect from the upcoming budget 2024.
Tax Rebate Increase
Media reports suggest that the upcoming budget might bring a pleasant surprise for taxpayers by raising the tax rebate under the new income tax regime to Rs 7.5 lakh from the current Rs 7 lakh. If implemented, individuals with an income of Rs 7.5 lakh per annum, after a standard deduction of Rs 50,000, will be exempted from paying income tax starting from the fiscal year 2024-25.
Section 80D Medical Insurance Premium Deductions
Tax experts are anticipating an increase in Section 80D medical insurance premium deductions from ₹25,000 to ₹50,000 for individuals and from ₹50,000 to ₹75,000 for seniors. This move would provide additional financial relief for those investing in health insurance, aligning with the government’s commitment to the well-being of its citizens.
Capital Gains Tax and Home Loan Interest Deductions
Experts are advocating for a streamlined capital gains tax regime, aiming to simplify the taxation process for investors. Additionally, there are hopes for an increase in interest repayment deductions for home loans on primary residences or business properties, offering further incentives for homeowners.
Deduction from National Pension Scheme (NPS) Contributions
The Pension Fund Regulatory and Development Authority (PFRDA) has recommended the exemption of employer contributions to the National Pension Scheme (NPS) up to 12 percent from income tax. This positive change could encourage more individuals to invest in long-term retirement plans.
Exemption from TCS on Overseas Cr Card/Dt Card Spending
According to a report on Business Today on January 9,2024, the Centre is expected to announce an exemption on overseas Credit Card or Debit Card spendings by individuals upto a limit of Rs. 7 lakhs in a financial year.
Conclusion:
As Finance Minister Nirmala Sitharaman prepares to present the interim budget, the expectations are high for a taxpayer-friendly approach. The potential revisions in income tax rebates, medical insurance premium deductions, and contributions to the National Pension Scheme signal positive changes that could significantly impact the financial landscape for individuals. Stay tuned for the official announcements that may shape the financial journey of taxpayers in the coming fiscal year.
To Know about the Top 5 Income-Tax Changes in 2023 Impacting you in Current Year CLICK HERE
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