Sitharaman to boost income tax exemption threshold?: The Finance Minister, Nirmala Sithraman, may raise the income tax exemption threshold in the upcoming Budget 2024, the first of the PM Modi Government’s third term. According to news agency Reuters, the government is thinking of lowering income tax rates for particular categories of people, which could ease taxpayers in the first full-fledged Budget 2024 of Modi 3.0.
For people making ₹10 lakh or more annually, the government may also reduce income tax rates.
According to Moneycontrol, which cited government officials, the Center intends to increase the income threshold from ₹3 lakh to ₹5 lakh in the budget before any tax is imposed. According to the report, this modification might only be applicable to people filing returns under the new tax law.
Regarding Budget 2024, what experts said?
According to Mint, Aarti Raote, a partner at Deloitte India, stated: “Private taxpayers have historically received minimal tax benefits or incentives outside of the new tax framework. Therefore, a lot of people think that the government ought to increase the exemption slab rates for individuals to around ₹5 lakh this year.”
What about changing the limit in Section 80C?
According to Mint, Clear founder and CEO Archit Gupta stated, “This would not only help taxpayers combat inflation but also stimulate savings and investments in key financial instruments like ELSS, tax saver FDs, PPF, etc., aligning with the broader vision of a financially robust and prosperous India.” The section 80C limit revision has remained unchanged since 2014 despite rising rates of inflation.
