As the interim budget for 2024 approaches, set to be presented by Finance Minister Nirmala Sitharaman on February 1, taxpayers in India are brimming with expectations. In this election year, the interim budget is highly anticipated, and citizens are particularly focused on the potential alterations to the tax landscape. Here’s a glimpse into what taxpayers are hoping to witness in the upcoming budget.
1. Retention of the Old Tax Regime: A Collective Call for Continuity
Many taxpayers are expressing their desire for the Finance Minister to retain the old tax regime. There is a prevailing concern that the introduction of the new tax regime might lead to the phasing out of the old one. Taxpayers are united in their demand to preserve the old tax regime, providing them with the continuity they are accustomed to.
2. 80D Deduction Limit Increase: A Healthier Approach to Medical Insurance Deductions
Taxpayers are urging for an augmentation of the deduction limit under Section 80D for individual medical insurance premiums. Currently capped at ₹25,000, there is a collective request to raise this limit to ₹50,000. Additionally, for senior citizens, the proposal is to elevate the limit from ₹50,000 to ₹75,000, offering enhanced benefits for medical insurance.
3. Expanding the Tax-Free Slab: Easing the Burden on Salaried Employees
Salaried employees are hopeful for an expansion of the tax-free slab. The collective wish is for the government to make annual salaries up to ₹8 lakh tax-free. Under the new tax regime, taxpayers are currently exempted from tax liability up to an annual salary of ₹7 lakh. An expansion of this slab would bring considerable relief to many middle-class households.
4. Simplifying Capital Gain Tax: Clarity and Streamlining for Investors
A widespread demand echoes for the simplification of capital gain tax. The current complexity of the regime, considering various factors like asset class, holding period, tax rates, and residency status, has created confusion among investors. Experts suggest streamlining the classification of equity and debt instruments, unifying tax treatment for listed and unlisted securities, and simplifying provisions for indexation.
5. A Critical Interim Budget: Shaping Financial Planning in an Election Year
As India stands on the brink of an election year, the interim budget of 2024 holds significant importance. The government’s response to the collective expectations of taxpayers will not only influence financial planning but also impact the investment landscape for individuals and businesses nationwide.
