The NDA government, led by Narendra Modi, is all set to present the budget next month. With 72 members from BJP and its allies recently sworn in as cabinet and state ministers, Finance Minister Nirmala Sitharaman will pave the way for her sixth full-fledged Union Budget in July. Let's dive into the expected changes and benefits for the middle class in Budget 2024.
Taxpayers are hopeful that the new budget will bring some tax relief. Experts believe Sitharaman might revise the exemption limits under Sections 80C and 80D. The last modification in Section 80C was in the 2014-15 budget, increasing the exemption limit from ₹1 lakh to ₹1.5 lakh. This section is crucial for middle-class taxpayers, allowing tax benefits on investments in PPF, NPS, small savings schemes, life insurance, ELSS, ULIPs, and home loan principal repayments. 💼
Experts suggest that the government might reduce tax slabs and streamline exemptions, making it easier for the common man. There's also a possibility of enhancing digital systems in the tax policy to improve transparency and reduce processing times for income tax returns. Notably, school fee exemptions under Section 80C and increased health insurance deductions under Section 80D from ₹25,000 to ₹75,000 are expected.
The new government is anticipated to introduce reforms for a clearer and more efficient tax system. Simplifying the tax filing process and reducing the administrative burden on taxpayers are among the key expectations. These changes could bring a significant relief to the middle class, making the taxation system more accessible and beneficial.
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