Budget 2024: Modi 3.0 rains relief on taxpayers!

For taxpayers, the first budget of the Modi government's third term may be excellent. It is anticipated that the complete budget, which will be unveiled the next day, would offer numerous tax breaks. Let's examine the six significant tax breaks that taxpayers anticipate from Finance minister Nirmala Sitharaman in 2018 budget.

The default now is the new tax scheme.

The new tax system included all of the tax-related adjustments that Finance minister Nirmala Sitharaman had previously disclosed in the budget for the fiscal year 2023–2024. Initially, it was announced that the new system would become the default tax regime, and it went into force with the current tax filing season. On the income tax return filing portal itself, there is a filing option under the new tax regime. If a taxpayer wishes to stick with the previous tax system, they must make a separate statement.

The most recent budget included these modifications.

The new tax system refund would be increased from Rs 5 lakh to Rs 7 lakh, as the Finance minister had suggested in the previous year's budget. That is, those earning up to Rs 7 lakh a year are exempt from income tax under the new tax regime. The income tax slabs were also modified in conjunction with that. There are now just five tax slabs instead of six. With the new tax regime, income between Rs 0 and Rs 3 lakh is tax-free following the revision of the slabs. Concurrently, the liability is as follows: 5% on income between Rs. 3 and Rs. 6 lakh, 10% on income between Rs. 6 and Rs. 9 lakh, 15% on income between Rs. 9 and Rs. 12 lakh, 20% on income between Rs. 12 and Rs. 15 lakh, and 30% on annual income beyond Rs. 15 lakh.

This time, these adjustments are possible:

It is anticipated that the government would alter the income tax slabs in this year's budget as well.

Deloitte claims that the top slab of 30% can be lowered to 25%.

Following the budget, taxpayers may be able to lower their TDS (Tax Deducted at Source) deduction.

The extent of the salaried taxpayers' 80C exemption may be expanded by the Finance Minister.

It is possible to raise the standard deduction from Rs 60,000 to Rs 1 lakh.

This time, the range of NPS and HRA, among other deductions, may expand.