Income Tax Budget 2024: Expectations and Relief for Taxpayers

The upcoming Union Budget 2024, to be presented by Finance Minister Nirmala Sitharaman on July 23, is expected to bring significant changes to both the old and new income tax regimes. This will be the first full budget of Modi 3.0, and Sitharaman will be the first finance minister to present seven consecutive Union Budgets, surpassing Morarji Desai’s record of six successive presentations.

Clear founder and CEO Archit Gupta suggests that the increasing focus on environmental sustainability could lead to the reintroduction of deductions under section 80EEB in both tax regimes. This provision allows taxpayers to claim a deduction of up to ₹1.5 lakh on the interest paid on loans taken for purchasing electric vehicles. This move could significantly encourage taxpayers to adopt eco-friendly practices.

Regarding the new income tax regime, Gupta proposes revising the tax rate for individuals earning between ₹15 lakh and ₹20 lakh. Currently, this rate is set at 30%, but lowering it to 22%-25% would provide substantial relief to taxpayers in this income bracket. This change would alleviate the tax burden and encourage taxpayers to invest in their future.

Abhishek Soni, CEO and Co-founder of Tax2win, believes that tax slabs and rates need to be adjusted in the old regime to reflect current economic conditions and ensure fairness. This could involve revising the thresholds at which higher tax rates apply or introducing new brackets to distribute the tax burden more equitably. Similarly, Soni suggests that the new income tax regime could focus on simplifying the structure by expanding the scope of deductions or credits available to taxpayers. This would promote savings or investments, aligning with broader economic goals like fostering entrepreneurship or innovation.

The new income tax regime has the following slabs:

• No tax on income up to ₹3 lakh
• Income between ₹3 lakh to ₹6 lakh is taxed at 5% (with rebate under Section 87A)
• Income between ₹6 lakh to ₹9 lakh is taxed at 10% (with rebate under Section 87A on income up to ₹7 lakh)
• Income between ₹9 lakh to ₹12 lakh is taxed at 15%
• Income between ₹12 lakh to ₹15 lakh is taxed at 20%
• Income above ₹15 lakh is taxed at 30%

The old income tax regime has the following slabs:

• Income up to ₹2.5 lakh is exempt from taxation
• Income between ₹2.5 lakh to ₹5 lakh is taxed at 5%
• Income between ₹5 lakh to ₹10 lakh is taxed at 20%
• Income above ₹10 lakh is taxed at 30%

The Union Budget 2024 will commence at 11 AM on July 23 in the Lok Sabha and will be televised on Parliament’s official channels, Doordarshan and Sansad TV, as well as streamed live on the government’s official YouTube channels. Taxpayers are eagerly waiting to see if the budget will bring relief and changes to their tax regimes.

Key Takeaways:

• Reintroduction of deductions under section 80EEB in both tax regimes to encourage environmental sustainability
• Revision of tax rate for individuals earning between ₹15 lakh and ₹20 lakh in the new income tax regime
• Adjustments to tax slabs and rates in the old regime to reflect current economic conditions and ensure fairness
• Simplification of the new income tax regime by expanding the scope of deductions or credits available to taxpayers
• The Union Budget 2024 will be presented by Finance Minister Nirmala Sitharaman on July 23 at 11 AM in the Lok Sabha.

Historical Context:

The Union Budget is an annual event in India where the Finance Minister presents the country’s financial plan for the upcoming fiscal year. The budget is a crucial document that outlines the government’s plans for taxation, spending, and economic development. The budget is usually presented in the Lok Sabha, the lower house of the Indian Parliament, and is televised live on various channels.

In recent years, the Union Budget has been a significant event in Indian politics, with the government using it to announce major policy changes and reforms. The budget has been used to introduce new taxes, reduce existing taxes, and increase spending on various sectors such as healthcare, education, and infrastructure.

The current Finance Minister, Nirmala Sitharaman, has presented the budget six times previously and is set to break the record of Morarji Desai, who presented the budget six times. This will be the first full budget of the Modi 3.0 government, which came to power in 2024.

Article Summary:

The upcoming Union Budget 2024 is expected to bring significant changes to both the old and new income tax regimes. The budget is expected to reintroduce deductions under section 80EEB in both tax regimes to encourage environmental sustainability. The new income tax regime is expected to revise the tax rate for individuals earning between ₹15 lakh and ₹20 lakh, providing relief to taxpayers in this income bracket.

The old income tax regime is expected to adjust its tax slabs and rates to reflect current economic conditions and ensure fairness. The new income tax regime is expected to simplify its structure by expanding the scope of deductions or credits available to taxpayers.

Key Takeaways:

• Reintroduction of deductions under section 80EEB in both tax regimes to encourage environmental sustainability • Revision of tax rate for individuals earning between ₹15 lakh and ₹20 lakh in the new income tax regime • Adjustments to tax slabs and rates in the old regime to reflect current economic conditions and ensure fairness • Simplification of the new income tax regime by expanding the scope of deductions or credits available to taxpayers • The Union Budget 2024 will be presented by Finance Minister Nirmala Sitharaman on July 23 at 11 AM in the Lok Sabha.