Modi 3.0 Budget 2024 Expectations: What are Finance Minister Nirmala Sitharaman's plans for taxpayers?
With the dawn of Modi 3.0, all eyes are eagerly set on the upcoming Union Budget of 2024, slated for presentation in July. Anticipation runs high among industries, farmers, taxpayers, and the middle class alike, as they await potential boosts and tax reliefs from Finance Minister Nirmala Sitharaman.
As the first budget of this new government term, expectations are rife for impactful announcements that could shape India’s economic trajectory in the year ahead.
In the Union Budget 2020, the Modi government introduced a new tax regime with lower slabs but without traditional deductions. It failed to attract expected adoption, prompting adjustments like a standard deduction and rebate up to ₹7 lakh to incentivize taxpayers.
Despite offering lower tax rates, the new tax regime has not gained significant traction among taxpayers. To enhance its appeal and encourage broader adoption, the government is anticipated to introduce additional deductions under this regime.
Specifically, there is a possibility of increasing the 80C deduction limit from ₹1.5 lakh to ₹2 lakh under the old tax regime, last revised in 2014 by Finance Minister Arun Jaitley during Modi 1.0 government.
Currently, section 80C benefits are not available under the default (new) tax regime. It is expected that this benefit will be extended to the default tax regime to incentivize more taxpayers to opt for it, as suggested by Suresh Surana, Founder of RSM India, reported Financial Express.
Under Section 80C of the Income-tax Act, 1961, deductions encompass various savings and investments including LIC, PPF, RPF contributions, and more. The current annual limit for these deductions stands at ₹1,50,000.
However, stakeholders argue that this limit is restrictive
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