The much-anticipated income tax rebate under the new direct tax regime is unlikely to witness an increase in the upcoming Interim Budget 2024 as reported by moneycontrol.com.
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The Finance Minister’s announcements related to income tax during the Budget presentation are closely monitored, especially by salaried individuals who eagerly await potential changes in tax rebates.
According to a report in Moneycontrol, an official source has dismissed any proposal for an increase in the income tax rebate. “There is no such proposal,” stated the source, blowing out the hopes of those anticipating a boost in tax benefits.
Industry experts, however, reveal that the salaried workforce is hopeful for an increase in the basic exemption limit and House Rent Allowance (HRA) exemption under both the new and old tax regimes. These expectations stem from the desire to ease the financial burden on the middle-class populace.
Scheduled for February 1, Union Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024, especially significant as Lok Sabha elections are due later this year.
While the interim budget typically includes estimates of expenditure, revenue, fiscal deficit, financial performance, and projections for the upcoming financial year, it is constrained from making major policy announcements.
In the previous Union Budget 2023-24, Minister Sitharaman introduced five key announcements aimed at benefiting the hardworking middle class of the country. These encompassed changes in tax structure, an extension of the standard deduction benefit to the new tax regime, a reduction in the highest surcharge rate, and an extension of the limit of tax exemption on leave encashment for non-government salaried employees upon retirement.
As the nation awaits the unveiling of the Union Budget 2024, the news of a stagnant income tax rebate in the interim budget raises questions about the government’s stance on providing further relief to salaried individuals.
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With the general elections on the horizon, all eyes will be on the Finance Minister for insights into the fiscal direction the government intends to take in the coming year.
