Interim Budget 2024: Great expectations from the salaried class

By Team Asianet Newsable | First Published Feb 1, 2024, 8:37 AM IST

Interim Budget 2024: Salaried individuals express specific expectations for tax reforms. Key demands include raising the income threshold for the highest tax rate to Rs 20 lakh and reducing the tax rate to 25%.

Salaried individuals have great expectations from Finance Minister Nirmala Sitharaman and her Interim Budget 2024, especially with regard to significant tax reforms. A key demand from this demographic is an increase in the income threshold for the highest tax rate, soaring from the current Rs 10 lakh to Rs 20 lakh. Simultaneously, there is a collective desire for a reduction in the tax rate itself, aiming to bring it down from the existing 30% to a more moderate 25%.

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Experts suggest that the government might announce concessions for individual taxpayers under Section 87A. This could potentially lead to an increase in the overall tax exemption limit, raising it to Rs 8 lakh from the current Rs 7 lakh, inclusive of rebates.

Another noteworthy aspect of the expectations revolves around gender-specific tax relaxations. Some experts have advocated for tax relaxations tailored for women entrepreneurs. They emphasize the importance of providing more paid holidays for working mothers.

In the realm of investments, many salaried individuals allocate a portion of their income to real estate. As a result, there is heightened anticipation for potential announcements related to housing loan benefits in the upcoming budget. Currently, the deduction limit on home loan interest stands at a maximum of Rs 2 lakh per financial year under Section 24(b) of the Income Tax Act. Individuals are hoping for favourable changes in this aspect, anticipating a boost in housing-related tax benefits.

Moreover, salaried individuals are also eyeing possible enhancements in House Rent Allowance (HRA) deductions. The expectation is that the government may introduce measures to provide relief for those incurring rental expenses.

Healthcare is another significant area of focus, with salaried individuals anticipating potential announcements related to health insurance premium deductions under the new tax regime. This expectation aligns with the broader theme of promoting financial well-being and providing relief to taxpayers.

In summary, salaried individuals are eagerly awaiting the Union Budget, anticipating tax reforms that could positively impact their financial scenarios, stimulate investments, and contribute to a more equitable and supportive tax framework. The budget announcements, especially in response to these expectations, will be closely watched as they unfold.

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