Budget 2024: Expectations for tax sops under old regime run high

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₹7 lakh, wider tax slabs, and lower surcharges for the super rich. However, the last three budgets have not seen any new benefits or deductions under the old regime to reduce taxpayers' net tax liability or provide additional incentives for investments or certain expenses. It is clear that the government aims to encourage taxpayers to switch to the simpler new tax system.

However, many taxpayers are not yet ready to make the transition. With the upcoming Budget due in July, expectations are high among stakeholders that the old regime could see increased deduction limits on standard deductions, Section 80C, housing loans, and health expenses, among other things, in line with inflation. “The tax structure should encourage deductions for investments rather than promoting an alternate tax regime for individuals without such deductions as seen under the new tax regime," said Neeraj Agarwala, Partner, Nangia Andersen India.

“While lower tax rates may marginally alleviate some burden on taxpayers, the focus should be on providing adequate deductions that encourage investments and do not feel penalising. This approach would not only foster a culture of saving and investing but also ensure that individuals feel supported in their financial planning," he added. Mint spoke to experts to understand their expectations from the Budget on the personal tax front.

The Section 80C limit was last increased in 2014 from ₹1 lakh to ₹1.5 lakh. About 19 investments and expenditures, including provident fund, tax-saving mutual funds, insurance premiums, and children's tuition fees, are clubbed under the overall ₹1.5 lakh limit of 80C. “The 80C limit needs to be revised as it has remained unchanged since 2014 despite rising inflation rates,"