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Budget 2024-25 Announcements : The budget for the new term of the Modi government is likely to be presented on 23 or 24 July. Experts estimate that the government may consider tax relief to encourage the common people. Along with this, many big announcements can also be made in the budget. According to media sources, the government will limit the tax exemption to Rs 20 thousand under the new tax system in the next budget. It can be increased from Rs 3 lakh to Rs 5 lakh.
People are hopeful that the tax slabs can also be changed under the old tax system. According to experts, the government's focus is to boost the country's GDP growth by giving tax relief to the middle class. For which more and more investment is needed. In such a situation, due to the change in the tax slab, the exemption limit can be increased under the new tax system.
Focus on improving fiscal deficit
The government is considering strengthening the fiscal deficit. So that the decision on tax exemption can be postponed. The government has set a target of keeping the fiscal deficit at 5.1 percent of GDP growth for the current financial year. The government hopes that during the budget, the government may increase the limit of tax exemption under section 80 (C) of the Income Tax Act, 1961.
There has been no change in this segment for the last 10 years
Under Section 80(C), tax exemption of Rs. 1.5 lakh is given under Public Provident Fund, insurance and other schemes. However, the government can increase this limit to Rs. 2 lakh. There has been no change in this for the last 10 years.
What are the experts' estimates?
Mitesh Jain, partner at Economic Law Practice, said that in the first budget of the BJP government after the elections in 2014, the maximum tax exemption under Section 80C was Rs. 1.5 lakh was increased. Section 80C is a popular tax saving tool for taxpayers in the old tax system. In such a situation, most people are investing to take advantage of it.
The cost of resources such as life insurance premiums, tuition fees and home loan repayments have also increased significantly, leaving individuals often with a limit of Rs. 1.5 lakh allowed. Taxpayers have been expecting for a long time that this limit would be increased in the budget, but it has not happened yet. Now it is expected that this time its limit can be increased in the budget.
