Budget 2024: Some modifications in personal tax quite possible, says Sujit Bangar of TaxBuddy
saysSujit Bangar, Founder, Taxbuddy.com. In an interview with MintGenie, Bangar said that the interim Budget may not suggest any changes in tax rates, but major changes in personal taxation may take place. This would be a vote on account.
The full Budget will be presented by the new government after the results of the general elections are declared in May 2024. Therefore, expectations of some big bang changes can’t be there. However, modifications and alterations in personal taxation are quite possible.
The interim Budget presented in 2019, introduced a few major changes like the enhanced limit of standard deduction, income up to ₹5 lakh exempted from income tax, etc. Therefore, this year, the interim Budget may not suggest any changes in tax rates, but major changes in personal taxation can’t be denied. Since the advent of COVID-19 and then due to the Russia-Ukraine war, global shipping has seen an erratic pattern with a sharp increase in freight coupled with the unavailability of containers.
Few sops to the shipping industry to address these issues can be a welcome move in this Budget. With increasing per capita income, aspirations of global travel by the neo-rich are increasing. The proposed TCS requirement would create hurdles to business travel along with tourism.
Therefore, the government should reconsider it in this interim Budget. Deduction against school fees may be de-coupled from Section 80C and separate deduction may be offered for this purpose. It shall further boost the spending on school education.
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