Budget 2024: Will there be changes in tax slabs? Income tax reforms expected from FM Nirmala Sitharaman

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Budget 2024and the potential reforms it may bring, particularly in the realm of income tax. The annual budget is a crucial policy document that outlines the government's fiscal plans for the year ahead. For taxpayers and businesses alike, understanding the potential changes in income tax regulations is of paramount importance.

In this article, we delve into the key areas where reforms are anticipated and explore the potential impact on individuals and businesses. Union Finance Minister Nirmala Sitharaman is set to unveil the Interim Budget 2024 on Feb 1, characterised by a lack of significant policy announcements, given the impending Lok Sabha elections scheduled this year. The comprehensive Budget will be reserved for presentation post the formation of the new government following the general elections.

Typically, interim budgets encompass projections for expenditure, revenue, fiscal deficit, financial performance, and insights into the upcoming financial year for the current government, albeit without the introduction of any substantial policy changes. There are seven slabs in which the assessee is taxable, which are quite confusing for a layman to understand. There should be an easier and simpler way to tax individuals.

One of the most eagerly awaited aspects of any budget is the revision of income tax slabs. In recent years, taxpayers have voiced concerns about the existing slabs and the need for adjustments to account for inflation and rising living costs. As we approach the 2024 budget, speculation is rife about possible changes to the tax slabs to provide relief to the common taxpayer.