Budget 2024: Now the eyes of the common man are on the budget after the formation of Modi 3.0 government. Like every time, people have high expectations from the budget this time too. The NDA government is preparing to present the first budget of its third term. Right now internal evaluation is being done on many issues.
A new government has been formed in the country after the Lok Sabha elections are over. After the formation of the Modi 3.0 government, now everyone’s eyes are on the budget. Next month, Finance Minister Nirmala Sitharaman is going to present the full budget for the year 2024-25. Like every time, people have high expectations from the budget this time too.
This time the government is considering increasing the limit of standard deduction for the new tax rules, in which no changes will be made to the old system of exemptions. The NDA government is preparing to present the first budget of its third term. In such a situation, major changes are unlikely to be made in the capital gains mechanism.
Also Read: GST taxpayers get big relief, now they can make amendments in their returns
This is an issue on which the Income Tax Department is seeking a review. There have been suggestions to make the holding period uniform across different asset classes, but the government is not inclined to change this system at least for the time being.
Several issues are being evaluated
Discussions on the outline of the budget have just begun. Finance Minister Nirmala Sitharaman is conducting public consultations, but most of the exercise is currently confined to the Finance Ministry. Several issues are being internally evaluated, some of which will be discussed with other departments of the government, after which the Finance Ministry will take a final decision based on the feedback it receives from the PMO.
Will taxpayers get relief?
According to the information, most sections of the government are in favor of giving concessions to taxpayers. Especially the middle class, which has been a supporter of the Modi government, but is constantly raising questions about the benefits it receives in return for the tax it pays, whether it is public health service or education.
The last budget was like this
In the 2023 budget, the finance minister introduced a standard deduction of Rs 50,000 for salaried taxpayers and pensioners under the new tax regime, which became the default option unless you chose to opt for it. Also, the exemption under section 87A was increased for taxable income not exceeding Rs 7 lakh under the new tax regime, so that those earning up to this level (taxable income) did not have to pay any tax under the new regime. The highest surcharge was also removed under the new regime.
These suggestions are given
Currently, individuals with taxable income of over Rs 3 lakh pay 5 per cent tax and there have been suggestions from industry leaders that rates be revised in higher brackets to boost consumption. Higher standard deduction will benefit all salaried taxpayers, including those in the upper bracket, though it will lead to some revenue loss.
