Income tax expectations for Budget 2024: Focus on medical insurance and capital gains tax
Nirmala Sitharaman will present the Union Budget 2024 on February 1 next year. It will be an interim Budget as the elections for the Lok Sabha are due early next year. The full Budget for FY25 will be presented after the formation of the new government.
This will be the sixth Budget of Finance Minister Nirmala Sitharaman, who presented her first full Budget in July 2019. Tax experts are anticipating significant changes in Budget 2024, focusing on two crucial areas: increasing deductions for medical insurance premiums and simplifying the capital gains tax regime. Livemint spoke to income tax experts to understand the expectations with regards to deductions, and taxation under the new and old tax regime.
“There's a push for equity in deductions within the new tax regime. While NPS scheme investments currently enjoy deductions, there's a strong expectation for similar benefits for premiums paid toward medical insurance policies or specified medical expenditures," Said Abhishek Soni, CEO of Tax2win. Archit Gupta, CEO, of Clear Tax shared what he hopes from Budget 2024 concerning the old tax regime - Increase the deduction limit under Section 80D for medical insurance premiums from ₹25,000 to ₹50,000 for individuals -Increase the deduction limit under Section 80D for medical insurance premiums from ₹50,000 to ₹75,000 for senior citizens, reflecting rising healthcare costs.
- Simplification of capital gains tax regime by bringing parity between various asset classes. Archit Gupta, CEO, of Clear Tax shared what he hopes from Budget 2024 concerning the new tax regime - Extend Section 80D deduction for medical insurance premiums under the new regime, ensuring equal access to healthcare tax benefits. - Reintroduce Section 80CCG
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