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.)