New Delhi, July 22: Finance Minister Nirmala Sitharaman will present the Economic Survey 2023-24 on Monday, in the Parliament on the first day of the Budget session. The Economic Survey is expected to provide direction to the Budget 2024. On July 23, 2024, FM Sitharaman will present the Union Budget 2024 in the Parliament. This will be the first Budget of the newly elected NDA government led by PM Narendra Modi.

One major tax relief that the government may introduce in Budget 2024 is increasing the exemption limit to Rs 5 lakh in the new tax regime, with experts also voicing the need for it.

Currently taxpayers must choose between the old income tax regime, with its deductions and exemptions and the concessional tax regime, which offers lower tax rates but limits tax-saving options. While the concessional tax regime offers lower tax rates for most taxpayers, those earning above Rs 15 lakh face significant challenges.

Currently, income above Rs 15 lakh attracts a tax rate of 30% under both regimes. This, coupled with the removal of most exemptions and deductions in the new regime, results in a higher effective tax burden for this segment of taxpayers. As such, there is a growing consensus among taxpayers in this bracket that the current tax rates do not adequately reflect the complexities and expenses associated with inflation and higher incomes.

Given the less than expected mandate for the NDA in Lok Sabha polls 2024, the Union Budget 2024 is likely to strike a balance between reforms and populism. Like every year the common man, middle class and salaried individuals have high expectations from Budget 2024 to provide income tax relief and leave more cash in hand. Experts expect changes in the new income tax regime to make it more attractive for individual taxpayers. FM Sitharaman is likely to stick to the fiscal consolidation path with an aim to contain the fiscal deficit. However, Modi 3.0 government is also anticipated to continue with its record capex push with a focus on infrastructure. Track TOI’s live coverage to know the top expectations from Budget 2024.

The government has been favouring the new tax regime in recent budgets, so much so that the new regime is now the default option for all taxpayers, unless they make a voluntary change. The reasons are that a simplified tax regime is easier to follow for the taxpayers as well as easier to enforce for the tax authorities. We hope the government sweetens the new tax regime so that it becomes the default option not just in the tax filing portal but in the tax plans of taxpayers as well,” said Pallav Pradyumn Narang, Partner, CNK.

Also Read: Two brothers drown after boat capsizes

Watch

Find latest news from every corner of Northeast India at hubnetwork.in, your online source for breaking news, video coverage.

Also, Follow us on-

Twitter-twitter.com/nemediahub

Youtube channel- www.youtube.com/@NortheastMediaHub2020

Instagram- www.instagram.com/ne_media_hub