Union Budget 2024 Highlights:

  • Income Bracket (₹)Tax Rate
  • 0-3 lakh 0%
  • 3-7 lakh 5%
  • 7-10 lakh 10%
  • 10-12 lakh 15%
  • 12-15 lakh 20%
  • 15 lakh+ 30%
    Standard Deduction Hike:
  • Finance Minister Nirmala Sitharaman has announced a hike in the standard deduction from Rs 50,000 to Rs 75,000 under the new income tax regime. Additionally, the deduction on family pension for pensioners is proposed to increase from Rs 15,000 to Rs 25,000.
    Announcement on capital gains
  • STCG on certain financial assets shall attract tax at 20% as against current applicable rates
  • LTCG on all financial and non-financial assets increased to 12.5%
  • Exemption on LTCG raised to 1.25 lakhs from existing 1 lakhs
  • Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates
  • Listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term.
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Pre-Budget Expected Amendments 2024

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024-25 on July 23. Here are some anticipated changes:

Income Tax Reforms

  • Old Regime: Possible adjustments in tax slabs and rates to reflect current economic conditions and ensure fairness, including new brackets.
  • New Regime: Potential simplification, expanding deductions and credits to encourage savings, investments, and promote entrepreneurship.

Section 80CCD(1B)

  • Expected increase in the annual deduction limit beyond the current ₹50,000 to encourage higher NPS contributions.

Standard Deduction

  • Potential increase in the standard deduction from salary to provide relief to taxpayers by adjusting for inflation and rising living costs. This would benefit lower and middle-income taxpayers by reducing their taxable income and overall tax liability.

Middle Class Income Tax Wishlist

  • Increase Basic Exemption Limit: Raise the threshold of income exempt from tax.
  • Revision of Tax Slabs: Adjust to reflect current economic conditions and inflation.
  • Deductions and Exemptions: Expand deductions under Section 80C or introduce new exemptions.
  • Standard Deduction: Increase for salaried individuals.
  • Healthcare and Education Deductions: Introduce specific deductions for these expenses.
  • Housing Loan Interest: Increase deduction limit on interest paid for self-occupied properties.
  • Tax Benefits for Senior Citizens: Provide additional benefits, such as higher exemption limits or lower tax rates.
  • Simplification of Tax Filing: Reduce compliance burdens for individual taxpayers.
  • Capital Gains Tax: Consider revising norms to encourage investment and entrepreneurship.
  • Inflation-Adjusted Policies: Periodically adjust tax policies and exemptions for inflation.

Specific Expectations

  • Home Loan Deduction: Increase limit to at least ₹3 lakh.
  • NPS Investment Deduction: Increase additional deduction limit from ₹50,000 to ₹100,000 and make withdrawals tax-free.
  • Section 80C Threshold: Enhance limit to at least ₹2.5 lakh.
  • LTCG Tax on Equities: Eliminate or provide exemption for long-term investors.
  • Standard Deduction: Increase to ₹1,00,000, with a higher limit for army personnel.
  • Reduction in Litigation: Measures to streamline and expedite tax dispute resolution.
  • Refund Delays and TDS Credit: Solutions to expedite refund processes and enhance the interface with the Central Processing Centre.
  • Simplified Capital Gains Tax Structure: Move towards a more straightforward and consistent regime.
  • Reduced TDS for Professionals: Propose reduction in TDS to ease financial burden and administrative hassles, possibly to 5%.

FAQs on Budget 2024

Q- When the budget will be presented in 2024?

Finance Minister Nirmala Sitharaman presented the interim budget for the financial year 2024-2025 on 1 February 2024. This time, it was an interim budget. The full-fledged Budget 2024 will be held on 23rd July as approved by President Droupadi Murmu.

Q- Who prepares the Union budget?

The budget is a detailed planning allocation of economic resources of the country for the upcoming fiscal year. Since it has a major impact on all sectors, the budget is prepared in harmony with different ministries. Recommendations from all the ministries are submitted to the finance ministry for their demands, which are further analyzed by the budget division.

Q- Who will introduce Budget 2024-25?

Budget 2024 will be introduced by the Hon’ble Finance Minister Nirmala Sitharaman before the Parliament of India.

Q- What is the Interim Budget?

The interim Budget is presented by the ruling government when elections are due in the fiscal year. Hence, the ruling government cannot make strategic decisions for the complete fiscal year in which it might or might not have the ruling powers. The last Interim Budget was presented in 2024 by current Finance Minister Smt. Nirmala Sitharaman,.