Standard Deduction Relief: A huge comfort to taxpayers on salaries! In the budget, the standard deduction ceiling could be raised to ₹1 lakh

Standard Deduction Relief: A huge comfort to taxpayers on salaries! In the budget, the standard deduction ceiling could be raised to ₹1 lakh

Standard Deduction Relief: A huge comfort to taxpayers on salaries! In the budget, the standard deduction ceiling could be raised to ₹1 lakh

Budget 2024: The most popular deduction, the standard deduction allows you to save money without having to make any investments. The salaried class has long called for an increase in the standard deduction cap. With the introduction of the standard deduction by the government last year along with the new tax structure, this desire has grown even more.

Budget 2024: The most popular deduction, the standard deduction allows you to save money without having to make any investments. The salaried class has long called for an increase in the standard deduction cap. With the introduction of the standard deduction by the government last year along with the new tax structure, this desire has grown even more. Nearly five years have passed since the standard deduction was altered. The most recent adjustment to the standard deduction occurred in 2019. Even if the 2024 budget is really a temporary one, middle-class wage earners nevertheless have high expectations. Nirmala Sitharaman, the finance minister, is anticipated to soften several tax laws. In Budget 2024, would the standard deduction be raised by Rs 50,000?

Standard deduction: what is it?

A fixed deduction from taxable income known as the standard deduction is available to the salaried class without requiring them to demonstrate any savings or expenses. Achieving equity between taxpayers who earn company revenue and taxpayers who receive salary is its goal. Standard deduction is now accessible under both the current tax system and the previous one.

The first year that standard deduction was implemented was 1974.

In India, standard deduction was first used in 1974. According to the Standard Deduction's past, retirees and salaried persons might use this deduction to partially offset their costs. In 2004–2005, it was eliminated in order to streamline taxes. It was reintroduced in the 2018 Union Budget, with a set amount of Rs 40,000 for retirees and salary class workers. The standard deduction limit was raised to Rs 50,000 in the interim budget that was unveiled on February 1, 2019. This was restricted to the previous tax structure, however. It was paired with the revised tax structure in Budget 2023. Under the new tax system, a standard deduction of Rs 50,000 was permitted.

Why should the standard deduction be raised by Rs 50,000 in Budget 2024?

There are numerous reasons for raising the standard deduction limit from Rs 50,000. Many tax experts say that it has to be raised from Rs 50,000 to Rs 1,00,000. The standard deduction must be raised in order to combat inflation and boost discretionary income.