Table of Contents
Interim Budget 2024 :
The Interim Budget 2024, a pivotal financial roadmap presented in the prelude to a general election, holds significant implications for the nation’s economic trajectory. Fiscal policies, a linchpin of governmental strategy, are anticipated to undergo scrutiny and potential reforms, potentially impacting taxation, public spending, and economic management. Also to know previous budget visit Budget 2023.
Amid expectations of tax concessions, the budget’s nuanced approach is eagerly awaited, especially for insights into sector-specific updates, offering a glimpse into allocations and policies governing industries such as agriculture, healthcare, and infrastructure. Investors keep a keen eye on announcements related to tax relief, potential investment opportunities, and alterations in the tax landscape.
The agricultural sector, a crucial component of the nation’s economy, may witness attention, particularly in the context of policies concerning agricultural credit. For specific demographics, like senior citizens and the middle-class taxpayer segment, the budget’s provisions for tax benefits and relief measures are closely watched.
The Finance Minister, as the architect of these financial decisions, plays a central role in shaping the fiscal contours of the country. As the budget unfolds, intricacies related to income tax deductions, standard deduction adjustments, and alterations in Section 80C will be pivotal facets that individuals and businesses alike will keenly observe, with the overarching goal of understanding the economic measures set to unfold in this critical financial plan.
Importance :
Interim Budget 2024, As we are well aware that the Union Elections are going to be held in this year and this would be last budget for existing government there are few important aspects that are expected.
The finance minister has already gave a key note that the new budget will not be having any major announcements but will focus on the government expenditure until the new government takes over.
Key Points :
Government might increase the subsidy for the affordable housing by more than 15 percent.
Provident Fund Office (EPFO). Anticipated announcements related to this matter are expected during the release of the interim Budget.
In the forthcoming interim Budget, there is a probability that the government will unveil a significant rise in the agricultural credit target for the next fiscal, aiming for a range of ₹22-25 lakh crore. This measure is intended to encompass every eligible farmer.
EY, in its 2024 Budget expectation report, suggests the potential extension of the favorable 15 percent income tax rate for corporate entities establishing new manufacturing units. This extension, if implemented, could be prolonged until March 31, 2025, with the aim of fostering increased private investments.
The government might enhance the appeal of the National Pension System (NPS) by expanding tax benefits on contributions and withdrawals, particularly targeting senior citizens aged 75 and above.
Rise in 80 C ?
Section 80C offers income tax advantages, allowing salaried individuals to claim deductions of up to ₹1.5 lakh when investing in tax-saving instruments such as the Public Provident Fund (PPF), five-year fixed deposit (FD), ELSS, National Savings Certificate, etc. Both individuals and Hindu Undivided Families (HUFs) qualify for income tax deductions under Section 80C of the Income Tax Act. Experts argue that there is a pressing necessity to increase the 80C deduction limit.
Numerous employed individuals heavily depend on Section 80C for income tax relief. There’s optimism that in the approaching Budget 2024, the deduction limit (currently set at 1.5 lakh) might see an increase. With the increasing cost of living and the 80C limit unchanged for nearly a decade, there’s a strong urge for an adjustment.
What you say about 80C in Interim Budget 2024 let us know in comment section below.
Standard Deduction :
Introduced in 1974, standard deduction resurfaced in India in 2018, replacing tax benefits for transport and medical expenses as part of tax reforms. Salaried individuals can claim this fixed deduction against their taxable salary without providing proof of expenses or investments.
It’s been nearly five years since the last update to the standard deduction, which happened in 2019. While the upcoming interim budget for 2024 may not bring comprehensive changes, there’s anticipation among middle-class taxpayers for potential tax benefits. Will Finance Minister Nirmala Sitharaman consider increasing the standard deduction from Rs 50,000 in Interim Budget 2024?