Budget 2024: Four advantages to income taxes, including an increase in the 80C deduction ceiling, that you should anticipate

Budget 2024: Four advantages to income taxes, including an increase in the 80C deduction ceiling, that you should anticipate

Budget 2024: Four advantages to income taxes, including an increase in the 80C deduction ceiling, that you should anticipate

Budget 2024: The interim budget (Interim Budget 2024–25) will be presented by Finance Minister Nirmala Sitharaman this time. There is a modest decrease in the likelihood of major announcements since the nation is set to have Lok Sabha elections this time around. Let us explain what the public expects from the budget this time around in terms of taxes:

Budget 2024: On February 1st, the nation's budget will be unveiled. Everyone is expecting big things from this budget, just as they do every year. This time, however, the Interim Budget 2024–25 will be presented by the Finance Minister, Nirmala Sitharaman. There is a modest decrease in the likelihood of major announcements since the nation is set to have Lok Sabha elections this time around. People in the middle class and those in the workforce are anticipating tax reduction. As usual, everyone is anticipated to get a tax refund this time around.

Let us explain what the public expects from the budget this time around in terms of taxes:

80C deduction upper limit

Experts predict that this time around, the administration may raise the 80C limit in the budget. It is possible to enhance the amount of insurance premium that is covered under Section 80C. The cap may be raised by the government from Rs 25,000 to Rs 50,000. Senior persons may be eligible for an increase in this cap, which goes from Rs 50,000 to Rs 75,000.

Aside from this, analysts think the government will greatly expand the reach of the healthcare service industry by boosting the advantages of Section 80D of the new tax system.

The 80C threshold was raised ten years ago.

Let us inform you that in 2014, the government raised the upper limit of Section 80C. The maximum amount allowed under this clause was just Rs 1 lakh up till the 2013–14 fiscal year. Nevertheless, it was raised to Rs 1.5 lakh in the 2014 budget. The last time this section's restriction was raised was ten years ago. Taxpayers and staff also anticipate that the government will raise this cap annually.

Processing TDS ought to be simplified.

Experts state that 1% TDS is now withheld when buying a property valued at more than ₹50 lakh. For local sellers, however, this procedure is quite simple. Additionally, it is very challenging for Non-Resident Indian (NRI) vendors.

The capital gains tax need to be simplified.

In addition, investors now have a number of difficulties with respect to capital gains tax. This has a number of issues, including the tax rate, residence requirements, and holding time.