Budget 2024 expectations: Increased deduction limits, and other benefits. Common man wishlist for FM Nirmala Sitharaman
Salaried individuals are expecting a separate deduction for repayment of home loans, enhancements in Section 80C and 80D deductions, and measures to encourage the shift to the new tax regime for home loan borrowers. Here's what a common man wishes from the Finance Minister in the Union Budget on February 1. Presently as per Section 80 CCE the deductions available under Section 80C, 80CCC, and 80 CCD(1) put together are capped at ₹1.50 lakh per year.
This limit of ₹1.50 lakh was revised from ₹1 lakh in 2014. “The earlier limit of ₹1 lakh was fixed way back in 2003. It has been almost 18 years since the original limit of ₹1 lakh was fixed.
It has only been increased by 50% in 2014 which works out to just less than 3% annually. This annual average increase is not even on par with average inflation during the same period. In my opinion, this should be directly raised minimum to ₹2.50 lakh," said Mumbai-based tax and investment expert Balwant Jain.
“Tax slabs have remained unchanged since 2014, burdening households with higher real tax rates each year. Indexing tax slab limits to inflation would put more money in the hands of middle-class consumers to counter cost pressures without fiscal damage," said Agam Gupta, Exеcutivе Dirеctor, Sharе India Fincap. Finance Minister Nirmala Sitharaman while presenting Budget 2023 on 1 February 2023, tweaked the slab rates for individuals opting for the new income tax regime.
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