Modi 3.0: 80C Deduction benefits to be extended to new tax regime in Budget 2024?

financialexpress.com:

Modi 3.0 Budget 2024: Finance Minister Nirmala Sitharaman will present the first budget of Modi 3.0 government in the second half of July. Industries, farmers and other stakeholders across sectors are eagerly anticipating potential booster announcements from the Narendra Modi government in the upcoming budget. Among these hopeful groups are taxpayers also, who are particularly expecting relief from the Finance Minister in form of tax sops. The middle-class, in particular, has not seen significant tax reductions in the last two budgets.

In the Union Budget 2020, the Modi government introduced a new tax regime alongside the existing one, aiming to provide taxpayers with an alternative. Initially, the government anticipated a broader adoption of the new regime due to its lower tax slabs, albeit without the traditional deductions and exemption benefits. The assumption proved incorrect, as the new tax regime did not attract taxpayers to the extent anticipated. Subsequently, the government made adjustments to the regime, favoring taxpayers by introducing a standard deduction benefit and a rebate on taxable income up to Rs 7 lakh.

Also read: Modi 3.0 maiden budget: Will Sitharaman discontinue old tax regime?

Under the new tax regime, individuals with an income of Rs 7 lakh or less pay zero tax. Salaried individuals benefit from a standard deduction of Rs 50,000, effectively allowing tax-free income up to Rs 7.5 lakh. However, for taxable incomes above Rs 7.5 lakh, income tax applies on the entire income, albeit at a reduced rate.

Under the new tax regime, there are six slabs. Under the new tax regime, the tax rates are structured as follows: income up to Rs 3 lakh attracts zero tax, Rs 3 lakh to Rs 6 lakh is taxed at 5% with