Budget 2024: From minor tax sops to enhanced exemption limits, here's what financial experts expect
The government is scheduled to unveil the annual budget for the upcoming fiscal year 2025 after the conclusion of the general elections next year. In the meantime, an interim budget will be presented on a “Vote on Account" basis on February 01 of the upcoming year. The interim budget will exclusively address necessary expenditures, typically having a restricted scope and excluding significant policy alterations or the introduction of new programs.
Anticipating significant announcements in the forthcoming interim budget on February 01 is highly improbable. Nevertheless, numerous individuals, particularly salaried taxpayers, have expressed desires and proposed various modifications, such as elevating the Public Provident Fund (PPF) limit or enhancing interest rates in government-sponsored schemes.
They hope the government will align with their savings and appeals in the upcoming budget. Additionally, as the general elections draw near, there is an expectation that the government might prioritise announcements appealing to voters, potentially incorporating populist measures like tax cuts or subsidies. However, it is acknowledged that the impact of such measures may be temporary.
Engaging with certain personal finance experts underscores the anticipated outcomes people have for this budget, emphasising that previous budget declarations lead them to anticipate fewer tax cuts and giveaways.
Akhil Chandna, Partner, Grant Thornton Bharat, shares, “With the Budget 2024 fast approaching, individual taxpayers expect enhancements in Sections 80C and 80D deductions, as well as an increase in the standard deduction. The government may raise the ceiling for taxing long-term capital gains on the transfer of equity shares and units of
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