Budget 2024: 7 Income Tax Benefits You Could Expect From FM Nirmala Sitharaman

The Union Budget 2024 is just around the corner, and income taxpayers have high hopes from Finance Minister Nirmala Sitharaman. With rising inflation and the cost of living, salaried individuals expect some major income tax relief measures in Budget 2024.

Catch 🔴 LIVE updates of the Union Budget for the FY 2024-2025 with Acko

In this blog, we will discuss the top 7 income tax benefits salaried individuals can expect in Budget 2024:

The current basic tax exemption limit of ₹2.5 lakh has remained unchanged since 2014. Considering rising inflation and higher cost of living, taxpayers expect a hike in the tax-free income threshold. There are expectations that the basic exemption limit may be increased from ₹2.5 lakh to ₹5 lakh for taxpayers under the old and the new tax regimes. This will provide significant tax relief and leave more disposable income in the hands of taxpayers.

The current standard deduction limit stands at ₹50,000. Considering rising inflation and expenses, salaried individuals expect this limit to be increased to ₹1 lakh in Budget 2024. This will provide taxpayers with further tax savings.

The current limit under Section 80C stands at ₹1.5 lakh per annum. This covers investments made in PPF, ELSS, life insurance premiums, NPS, etc. The Section 80C deduction limit has remained constant for a long. Taxpayers expect this limit to be enhanced to ₹2.5 lakh in Budget 2024. This will allow taxpayers to save more taxes by making higher tax-saving investments.

The current tax deduction limit on home loan interest payment stands at ₹2 lakh per annum under Section 24. With rising home loan EMIs, taxpayers expect this limit to be increased to ₹3 lakh in Budget 2024. This will provide major tax relief to home buyers.

Under Section 80D, a taxpayer can claim a maximum deduction of ₹25,000 on health insurance premium payments. Senior citizens can claim up to ₹50,000 deduction under this section. Considering rising healthcare costs, taxpayers expect this limit to be enhanced to ₹1 lakh for all individuals, irrespective of age.

With many organisations adopting permanent work-from-home and hybrid work models in the post-COVID world, salaried individuals expect the government to announce standard tax deductions for WFH expenses. This can cover costs like internet, electricity, office furniture, etc. Taxpayers expect a standard deduction of ₹50,000 per annum towards WFH expenses in Budget 2024.

The above seven income tax benefits are taxpayers' top expectations from FM Nirmala Sitharaman this budget. Higher fundamental exemption limits, higher tax slabs, increased Section 80C and 80D limits, higher standard deductions, and tax deductions on home loan interest and WFH expenses will provide much-needed relief to taxpayers.

With rising inflation and cost of living, taxpayers have high hopes of significant tax relief measures in Budget 2024. The finance minister has indicated that major income tax reforms will be announced in this budget. Let’s wait and watch what Budget 2024 has in store for taxpayers!

Read more :

Union Budget Expectations 2024 for Salaried Individuals

Union Budget 2024 Expectations