Anticipated Tax Relief Measures in Budget 2024: What Taxpayers and Experts are Expecting

Finance Minister Nirmala Sitharaman is gearing up to present the Union Budget for 2024-25 later this month, and taxpayers across India are eagerly awaiting some relief and concessions on the tax front. The disappointment felt after the Interim Budget, which maintained the same tax rates for direct and indirect taxes, including import duties, has only heightened the anticipation for the upcoming budget.

In an exclusive interview with Business Today TV, FM Sitharaman explained that the Interim Budget was not the appropriate time for her to make decisions regarding income tax rebates or revisions of tax slabs. However, with the slow growth of per capita income within the middle-income group, mainly comprised of salaried individuals, experts believe that tax relief for this group could stimulate increased spending and boost consumption, essential for economic growth.

The Finance Ministry is reportedly considering various tax relief measures, with a final decision expected just before the budget presentation. Some of the key expectations from taxpayers and experts include an increase in the standard deduction threshold for income taxpayers in the new regime, simplification of the income tax regime, clarification of NPS taxation rules, adjustments to the exemption limit under the new tax regime, extension of tax deferral benefits for ESOPs, and a review of HRA rates in line with the prevailing rental market trends.

As the government contemplates these tax relief measures to address the rising cost of living and stimulate economic growth, all eyes are on Finance Minister Nirmala Sitharaman as she prepares to unveil the Union Budget for 2024-25. Stay tuned for updates on the much-anticipated tax reforms that could impact millions of taxpayers across the country.