Budget 2024: Will Your Tax Slabs Change?
Union Finance Minister Nirmala Sitharaman is set to present Budget 2024 in the Lok Sabha on Tuesday, July 23. This comes after the interim budget presented on February 1, which addressed the financial needs until a new government could be formed following the 2024 Lok Sabha elections. The comprehensive budget is expected to bring significant changes, especially in the realm of income tax.
The Union Budget documents will be available on the “Union Budget Mobile App,” which can be downloaded from the Union Budget Web Portal (www.indiabudget.gov.in). The app is bilingual, supporting both English and Hindi, and is accessible on both Android and iOS platforms.
Expert Opinions on Potential Tax Reforms in Budget 2024
“We are hopeful for substantial tax reforms in Budget 2024. Anticipated changes include revised income tax slabs to increase disposable income and stimulate consumer spending. This could be achieved by raising the basic exemption limit and adjusting thresholds for higher tax rates,” said Kuljeet Singh, Director of Finance and Accounts at GI Group Holding.
Also Read : Budget 2024 Live: FM Sitharaman Revises Tax Structure Under New Regime
Proposed Changes in the New Tax Regime
The proposed income tax changes in Budget 2024 suggest an increase in the tax exemption limit to ₹5 lakh, which could allow individuals earning up to ₹8.5 lakh annually to avoid paying income tax. Additionally, the standard deduction limit might rise from ₹50,000 to ₹1,00,000. Gaurav Gunjan, Partner at Gupta Sachdeva & Co., Chartered Accountants, explained that this calculation takes into account the standard deduction and the rebate under section 87A, assuming it remains unchanged.
Potential New Tax Slabs Under the New Regime
Gaurav Gunjan highlighted the projected tax slabs under the new regime:
- Exemption Limit: ₹5 lakh
- Taxable Income ₹5 lakh – ₹6 lakh: 5%
- Taxable Income ₹6 lakh – ₹9 lakh: 10%
- Taxable Income ₹9 lakh – ₹12 lakh: 15%
- Taxable Income ₹12 lakh – ₹15 lakh: 20%
- Taxable Income above ₹15 lakh: 30%
Also Read : “Union Budget 2024: New Airports, Medical Facilities, and Sports Infrastructure Announced”
Changes in the Old Tax Regime
According to Gaurav Gunjan, significant changes to the old income tax regime are unlikely, as the government aims to encourage more individuals to transition to the new tax system.
Anticipation and Economic Impact
“As the Union Budget 2024 approaches, changes to tax slabs are highly anticipated and crucial for both businesses and individuals. There is optimism that the budget will support a vibrant economic future, promoting business growth and contributing to India’s digital transformation,” said Saif Ahmad Khan, Founder of Luhaif Digitech.
For more information on the upcoming budget and potential tax changes, you can visit the Union Budget Web Portal.
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By providing detailed insights and expert opinions, we aim to keep you informed about the potential changes in the upcoming Budget 2024 and how they may impact your financial planning. Stay tuned for more updates.