What's In Store: 6 Income Tax Benefits Expected In Budget 2024

Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2024 on July 23. Taxpayers are expecting revisions in standard deduction, income tax rates relief, and Section 80C exemptions. Experts predict adjustments in income tax slab rates with possible tax reductions likely to be announced. Here are 6 expected income tax changes in the Budget:

Standard Deduction: Introduced at ₹40,000 in 2018 and raised to ₹50,000 in 2019, the standard deduction has remained unchanged since.

Section 80C Exemption: Salaried individuals can currently avail exemptions up to ₹1.5 lakh under Section 80C, unchanged since 2014 but expected to be revised.

Income Tax Exemption Limit: The Finance Minister may increase the income tax exemption threshold from ₹3 lakh to ₹5 lakh, particularly impacting taxpayers opting for the new tax regime.

National Pension System (NPS): Potential changes in NPS could include raising the additional income tax deduction limit under Sec 80CCD 1B.

Tax Rate Reductions: Consideration may be given to reducing the top tax rate from 30% to 25% under the new tax regime. The threshold for the highest tax rate under the old regime may also rise from ₹10 lakh to ₹20 lakh.

House Rent Allowance (HRA): Anticipated increases in HRA exemptions could ease the burden of rising rental costs, especially in urban areas, expected to be addressed in the Budget.