Budget 2024: Jackpot waiting for common man...!?

Many changes in taxation are expected to please the common man and middle-class people. Economists believe that Finance minister Nirmala Sitharaman will give many gifts to taxpayers in this budget. Finance minister Nirmala Sitharaman is going to present the budget for this financial year on July 23. The BJP-led nda alliance has formed the government at the center for the third consecutive term. As this is the first budget of the third term, expectations have also increased. It is expected that many changes will be made in the taxation system especially to please the common man and the middle class people. Economists believe that Finance minister Nirmala Sitharaman will give many gifts to taxpayers in this budget. It is also believed that many of their long-standing demands will now be fulfilled. However, there are some doubts regarding this. There is a question of whether the incentives that the finance minister is going to give will be available under the old tax system or the new tax system. There is also an opinion that many new incentives may be given in the new tax system to popularize it as most of the taxpayers are still opting for the old taxation system.
It is said that this time the Basic Tax exemption limit may be increased to 5 lakh rupees. If this happens, many taxpayers will get relief. Preparations are underway to introduce several changes in the tax policy. Based on these, interest and interest in this year's budget has increased.

What is the Basic Tax Exemption Limit?
Individuals earning income within the basic tax exemption limit are not required to pay income tax. According to the existing taxation systems, in the Old Tax Regime, this limit is 2.5 lakh rupees. In the New Tax Regime, it is 3 lakh rupees. In this budget, the government is expected to increase this limit to Rs 5 lakh in both the old and new tax regimes. If this limit is increased, those who have opted for the old system of taxation will get more benefits. Because many exemptions are already given in this tax system.
Increasing the basic tax exemption limit will bring more benefits to the taxpayers. This will reduce their taxable income. Deductions and tax incentives are available to those who have opted for the old tax system. In this way, the amount of salary coming in hand will increase. This allows for greater deductions in investments and expenses. Increasing the personal tax exemption limit to 5 lakhs will increase the disposable income of middle-class people. It is reported that this will increase the economic growth. According to personal finance expert Pankaj Medpal, the government is more likely to increase the basic limit to Rs 5 lakh.

Experts feel that the increase in the basic tax exemption limit will help the common man to cope with inflation more easily. Over the past few years, the income and savings of the middle class have declined drastically due to inflation and rising prices. In this case, it would be right to increase this limit to provide relief to middle-class taxpayers. Experts believe that there will be no impact on the government's tax collection. One reason for this is that a large share of direct tax collection comes from the highest-income taxpayers.

The first term of the Modi government began in 2014. Soon after coming to power, the government gave huge relief to the taxpayers. The basic tax exemption limit has been increased from Rs 2 lakh to Rs 2.5 lakh. But no change was made in the tax bracket for ten years after that. However, it is expected that the government will provide this relief this year.
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budget 2024

Sowmiya Sriram

20/07/2024 03:02 PM