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Business News/ Budget / Budget Expectations/  Budget 2024: Pre-budget expectations for salaried individuals on income tax relief
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Budget 2024: Pre-budget expectations for salaried individuals on income tax relief

The current govt will be presenting its interim budget ahead of its forthcoming general elections. Taxpayers expect big measures with this budget

Budget 2024: Taxpayers expect big measures with this budget. Premium
Budget 2024: Taxpayers expect big measures with this budget.

The current govt will be presenting its interim budget ahead of its forthcoming general elections. Taxpayers expect big measures with this budget. Salaried individuals are hoping for an increase in the basic exemption limit and HRA exemption under both the new and old tax regimes.

Personal Finance Experts believe that with incomes squeezed by elevated inflation, the salaried class desperately needs relief when Finance Minister Nirmala Sitharaman presents the Interim Union Budget 2024 on February 1. So let's look at some of the major expectations they expect for Budget 2024 from various industry experts.

“Tax slabs have remained unchanged since 2014, burdening households with higher real tax rates each year. Indexing tax slab limits to inflation would put more money in the hands of middle-class consumers to counter cost pressures without fiscal damage," said Agam Gupta, Exеcutivе Dirеctor, Sharе India Fincap

Further, hiking standard deduction limits and the Sec 80C savings cap can incentivize financial prudence and channelise savings into productive assets like property, gold, and equities - stimulating growth, added Gupta.

“Salaried employees expect better take-home pay to maintain purchasing power against raging inflation. While outright income tax cuts seem unrealistic given fiscal constraints, some relief can be provided by enhancing transport, housing, and leave travel allowances tax-free ceilings. Raising these outdated limits set back in 2017 to account for surging home rental costs and private vehicle ownership expenses would assist budgets. Additionally, improving monthly GST input credit timelines and processes would also benefit salaried taxpayers. Lastly, increasing employer PF contributions from 12% to 15% can secure employee retirement funds better," said Ashish Aggarwal, Director, Acube Ventures

“With Budget 2024, salaried individuals are also expecting HRA exemption, and health insurance premium deduction under the new regime too. Enhancements are expected in Section 80C and 80D deductions," said Abhishek Soni, CEO and Co-founder of Tax2win.

Salaried individuals who are home loan borrowers are reluctant to move from the old to the new tax regime to not lose the home loan interest deduction allowed under the old regime. They are expecting some measures to be taken in this regard to encourage people to shift to the new tax regime, added Soni.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 09 Jan 2024, 01:24 PM IST
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