Budget 2024: Standard deduction should be raised to ₹65,000, says Deepashree Shetty of BDO India

livemint.com:

income tax return) verification done through OTP on foreign mobile numbers, says Deepashree Shetty, Partner, Tax & Regulatory Services, BDO India, while sharing her expectations from the interim Budget 2024. In an email interview with MintGenie, she alsotalks about the need to provide allowance for expenses related to electric vehicles. Her other Budget expectations include raising the amount of standard deduction from current ₹50,000 to ₹65,000.

Edited Excerpts: Currently, the fuel allowance received by an employee is subject to tax exemption under the I-T Act, with a maximum limit of ₹2,400 per month. However, there is no such allowance for expenses relating to electric vehicles (EV). The introduction of an exemption or deduction for allowances related to recharging EVs would not only provide tax benefits to the employees but also further promote the EV market.

For non-resident individuals living outside India who file tax returns, the e-verification process (post-filing of tax returns) can currently be completed only through the net banking channel or digital signature, which might not be available to all individuals. Verification through OTPs becomes difficult as they are sent only to Indian numbers. If OTPs are sent to foreign mobile numbers, it could streamline the process, reduce paperwork and administrative tasks such as tracking receipt by the tax office and applying for condonation of delays.

This could enhance the tax-filing experience for such diligent tax filers. The taxpayers’ positive response towards payment of tax through the newly introduced UPI gateway shows that ease in tax payment can encourage taxpayers. Similarly, for taxpayers based overseas, payment gateways through selective foreign bank