Income Tax: A Significant Update The budget may raise the standard deduction ceiling to ₹1 lakh; see details

 Income Tax: A Significant Update The budget may raise the standard deduction ceiling to ₹1 lakh; see details

Income Tax: A Significant Update The budget may raise the standard deduction ceiling to ₹1 lakh; see details

most recent revisions on the budget for 2024: Experts predict that this year will likely see something that hasn't occurred in ten years. Since growth is expected, inflation needs to be kept under control. It is necessary to lower interest rates. Taxpayers have a major part in all of this.

most recent revisions on the budget for 2024: The budget's preparations have begun. And everyone will be watching to see who gets what present this time from the Finance Minister. However, employed people wait the longest. those who anticipate receiving tax relief. This time around, something comparable is taking place. But this time, the situation is different. Election season is upon us. A provisional budget will be in place. The Finance Minister will likewise focus on certain areas only in such a scenario. Experts predict that this year will likely see something that hasn't occurred in ten years. Since growth is expected, inflation needs to be kept under control. It is necessary to lower interest rates. Taxpayers have a major part in all of this. Taxpayers must be satisfied if consumption is to be encouraged.

Increased receipt of direct taxes

Direct tax revenue collection for the government has been rather strong. Profits are rising all the time. The director tax collection increased by 17.01% from December 17, 2023, to the end of the financial year 2023–2024. Additionally, there has been a 20.66% increase in net direct tax collection. Additionally, food inflation is on the increase. For the next months, the Reserve Bank of India has also issued a caution. At the same time, growth is positive, but if it exceeds 8%, taxpayer funds must be increased. These situations together suggest that some tax reduction is required.

The typical deduction limit can get raised.

If reports are accurate, the administration may raise the standard deduction cap while providing help to taxpayers. Currently, a standard deduction of Rs 50,000 is made. KPMG has insisted on raising it to one lakh rupees. Their allowance need to be raised in light of the costs associated with travel, printing, stationery, books, staff salaries, car upkeep, and mobile fees. The 50,000 rupee standard deduction is insufficient to cover all of these costs. In light of rising living standards and inflation, the standard deduction need to be raised to Rs 1 lakh.

Additionally, ASSOCHAM has demanded

The reduction of Rs 50,000 is hardly a significant benefit for the salaried class, according to ASSOCHAM. Since not all taxpayers fall into the same earning band, many taxpayers find that this relief is insufficient. The standard deduction has also been sought by the Institute of Chartered Accountants (ICAI) to be based on an inflation-indexed increase.

The typical deduction limit can get raised.

If reports are accurate, the administration may raise the standard deduction cap while providing help to taxpayers. Its current cap is Rs 50,000. It is able to be raised. Experts in personal finance agree that it need to be raised to Rs 1 lakh. By adding it to the budget wishlist, the government may provide assistance in such a circumstance. According to sources, the standard deduction cap for paid employees and retirees may be raised in the budget from the current Rs 50,000 to Rs 75,000.