Union budget 2024: A wishlist of the middle class
₹100 per child per month and in respect of their hostel expenditure allowance is ₹300 per child per month, for a maximum of two children in a nuclear family. These exemption limits, in respect of the basic necessity of primary education of the children, have not been revised since ages.
Thus, there is a dire need to revise these exemption limits in line with the realistic and currently prevailing cost inflation index pertaining to education in primary schools and hostels. Further, like house rent, the child education expenditure is a basic necessity, and as such must also be allowed in the new personal tax regime of reduced tax rates.
Any deduction in respect of donations made to the ‘Shree Ram Janm Bhoomi Teerth Kshetra’ Trust, under section 80G is allowed only in the old personal tax regime. The government should consider allowing the same in the new regime as well, as a special gesture.
Further, it would do well to rationalize the advance tax instalments mandating the payments of 25%-50%-75% instead of the existing 60%-75%-90%. This, along with ensuring more speedy refunds, can result in increased disposable income in the hands of the taxpayers.
Mayank Mohanka is the founder of TaxAaram India and a partner at S.M. Mohanka & Associates.Milestone Alert!
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