Experts predict that the limit under Section 80C will increase from Rs 1.5 lakh to Rs 2 lakhs in the Union Budget of 2024. The limit revision will relieve taxpayers.
It is anticipated that Budget 2024 will include announcements that benefit salaried workers.
Salaried people seem to be anticipating a plethora of benefits as Nirmala Sitharaman gets ready to present the Union Budget 2024–25 later this month.
Surpassing the record of six consecutive budget presentations by former prime minister Morarji Desai, Sitharaman will be the first finance minister of India to present a statement for seven times in a row.
The Monsoon Session of Parliament, which starts on July 22 and ends on August 9, is when the budget will be presented. Sitharaman has presided over many pre-budget meetings including state finance ministers and business executives.
Let's examine the salaried taxpayers' wish list for the Union Budget 2024–2025.
Increased deduction under Section 80C
A taxpayer may lower their tax obligation by claiming deductions under Section 80C for investments and costs up to Rs 1.5 lakh per financial year. Experts predict that the cap under Section 80C would increase from Rs 1.5 lakh to Rs 2 lakh. The limit revision will relieve taxpayers.
Greater standard deduction cap
According to the Times of India, the finance ministry intends to maintain the previous, exempt-rich system while increasing the standard deduction cap for taxpayers' earnings under the new one.
"There's an established demand for an increase in the amount of standard contribution for salaried individuals as well as some increase in the rebate amount," Ritika Nayyar, consultant at Singhania & Co, told India Today.
The finance minister instituted a default deduction of Rs 50,000 for salaried taxpayers and pensioners under the new system in the 2023 Budget, unless they choose to opt out.
Higher deduction on house loans
An rise in limit of house loan deduction is predicted. Under Section 24(b) for deduction on interest on house loan of Rs 2 lakh is anticipated to be hiked to Rs 3 lakh.
Wider tax breaks
Important tax benefits including the house rent allowance (HRA) exemption, the home loan interest deduction, and the deduction for health insurance premiums should also be included in the new tax structure, according to taxpayers.
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