Union Budget 2024: Income tax rebate unlikely to rise in interim budget, says report

The announcements related to income tax are closely watched during the Budget presentation. Salaried individuals keenly wait for the Finance Minister's income tax rebate statements. Well, as per a report in Moneycontrol, the income tax rebate under the new direct tax regime is unlikely to rise in the interim Union Budget 2023. “There is no such proposal,” Moneycontrol reported quoting an official.

Earlier, on January 7, Mint reported citing two people that giving relief to the middle class ahead of the 2024 general elections, FM Sitharaman is likely to increase the tax rebate under the new personal income tax regime.

Industry experts believe that salaried individuals are hoping for an increase in the basic exemption limit and HRA exemption under both the new and old tax regimes.

While presenting, the Union Budget 2023, Union Finance Minister Nirmala Sitharaman announced the change in income tax slabs, up to ₹7 lakh rebate under the new income tax regime.

Interim Budget 2024

On February 1, Union Finance Minister Nirmala Sitharaman will present the Union Budget 2024 with no major announcements as the elections for the Lok Sabha are due early next year. The full Budget will be presented after the formation of the new government following the general elections. The interim budget generally includes estimates of expenditure, revenue, fiscal deficit, financial performance, and projections for the upcoming financial year of the incumbent government. However, it cannot include any major policy announcements.

Income tax rule changes that Finance Minister Nirmala Sitharaman announced last year

To benefit the hard-working middle class of the country, Nirmala Sitaraman made five major announcements concerning personal income tax while presenting the Union Budget 2023-24. These announcements about rebates, a change in tax structure, an extension of the benefit of the standard deduction to the new tax regime, a reduction of the highest surcharge rate, and an extension of the limit of tax exemption on leave encashment on the retirement of non-government salaried employees will provide substantial benefits to the working middle class.