look news india
The budget for the new term of the Modi government in 2024 is likely to be presented on 23 or 24 July. According to experts, the government may consider giving relief in income tax to encourage the common people. Apart from this, many big announcements can be made in the budget. According to media reports, the government may increase the tax exemption limit from Rs 3 lakh to Rs 5 lakh under the new tax system in the next budget.
Tax slabs can also be changed
It is also expected that the tax slabs under the old tax system can also be changed. Experts say that the government's focus is to provide tax exemption to the middle class and make maximum investment to boost the country's GDP growth. In such a situation, the exemption limit may increase due to changes in the tax slabs under the new tax system. However, the government is also considering strengthening the fiscal deficit, so these tax exemptions may be postponed. The government aims to maintain its fiscal deficit target of 5.1% of GDP for the current financial year. Meanwhile, it is expected that the government may increase the tax exemption limit under Section 80C of the Income Tax Act, 1961 during the budget.
No change in 10 years
Public Provident Fund, insurance and other schemes offer tax exemptions of up to Rs. 1.5 lakh under Section 80C. However, if the government increases the limit, this limit can go up to Rs. 2 lakh, especially since it has been 10 years since the changes were made.
What are the experts' estimates?
Since the first budget of the BJP government after the election in 2014, the maximum deduction under Section 80C has been increased to Rs 1.5 lakh. Section 80C is a popular tax saving tool for taxpayers in the old tax regime. 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 has also increased significantly, leaving individuals often with Rs. 1.5 lakh allowed up to the limit. Taxpayers have been expecting for a long time that this limit would be increased in the budget, but so far it has not happened. Now it is expected that its limit can be increased in this time's budget.
Experts say that there is a demand to increase the limit of Section 80C to Rs 2-2.5 lakh, so that some relief can be provided in the rising inflation. This limit is likely to be increased from Rs 1.5 lakh to Rs 3 lakh.
