Budget 2024 Expectations: What Taxpayers Should Anticipate

As the Lok Sabha elections approach in May, all eyes are on Union Finance Minister Nirmala Sitharaman, set to unveil an interim budget on February 1, 2024. Amidst global economic uncertainties, India’s growth trajectory remains positive, necessitating attention to domestic demand drivers like private consumption and investment spending.

Top Expectations for Budget 2024

With no major announcements expected, taxpayers eagerly await potential changes that could impact their financial landscape.

Taxable Income Current Surcharge Expected Surcharge
INR 50 Lakhs to INR 1 Crore 10% 5%
INR 1 Crore to INR 2 Crore 15% 10%
INR 2 Crore to INR 5 Crore 25% 15%
Exceeding INR 5 Crore 25% 25%

Changes in New Tax Regime

Last year’s focus on making the new tax regime attractive may see adjustments in surcharge rates to provide relief across income brackets.

  • Increased Standard Deduction

Considering rising living costs, an upward revision of the standard deduction is anticipated, offering salaried individuals some relief.

Changes in Old Tax Regime

Expanding HRA exemptions beyond metro cities and enhancing deductions for home loan interest and health insurance premiums are key expectations.

Incentivizing Electric Vehicle Adoption

Extending incentives for electric vehicle purchases aligns with environmental goals and promotes sustainable transportation.

Ease of Obligations for Non-Residents

Streamlining e-verification processes and addressing challenges in claiming relief from double taxation are crucial for non-resident taxpayers.

Other Key Expectations

Clarity on provident fund contributions and alignment of NPS exemptions with PF contributions are sought for improved financial planning.

As Budget 2024 approaches, taxpayers eagerly await measures that could impact their financial well-being. Stay tuned for updates on these crucial developments.

(Alok Agarwal is a partner with Deloitte Touche and Tohmatsu India LLP, and Anmol Nathani is a deputy manager with Deloitte Touche and Tohmatsu India LLP. Views expressed are personal.)


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