What salaried taxpayers can expect from Budget 2024

financialexpress.com:

Finance Minister Nirmala Sitharaman is all geared up to present the budget for the fiscal year (FY) 2024-25 on 01 February 2024, for the sixth consecutive year. So far, India has witnessed 91 budgets, which are 73 annual budgets, 14 vote-on-account or interim budgets and 4 special budgets, or mini-budgets. The upcoming Lok Sabha elections this year will mark the country’s 15th Interim Budget.

The government is prohibited by the Election Commission of India’s Code of Conduct from proposing significant tax reforms in the interim budget since doing so might influence voters and jeopardize a fair election process. The purpose of the interim budget is only to cover expenses until the new government is constituted. This year’s budget will merely be a Vote on Account; thus, taxpayers shouldn’t anticipate any major announcements. The full-fledged FY 2024-25 budget will be presented upon the formation of the new government.

However, some relief measures were announced in the 2019 interim budget, such as an increase in the standard deduction available to salaried individuals and income up to INR 5 lakh being exempt from income tax, etc. Thus, as we get closer to the unveiling of Budget 2024, let’s take a look at some of the salaried taxpayer’s expectations:

Many individuals expect the government to revise the income tax slab rates to make them more progressive and reasonable. This could potentially lead to a reduction in taxes for the middle-income group. Further, currently, the maximum surcharge rate levied in the new tax regime is 25%; however, under the old tax regime, it is 37%. The relief provided under the new tax regime might be extended to the old tax regime as well.

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