Budget 2024: Will Salaried Individuals Get Income Tax Relief? 10 Points

New Delhi: As Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2024 on July 23, the most pressing demand from the salaried class is to bring changes in the income-tax slabs and increase the rebates under section 80C, 80EE, 80EEA and 24(b) of the Income Tax Act.

Will the salaried class, awaiting FM's Budget announcement, get the much needed respite on taxation front? Here are 10 points you would want to explore.

 
1. Be it tax exemption, increasing the rebate cap on home loans, giving subsidies to farmers or addressing the issue of women's and senior citizens' taxation, the decision of the Finance Minister will be closely watched by one and all. 

2. The salaried class expects Finance Minister Nirmala Sitharaman to announce further increase in tax rebate under section 80C and 80D.

3. Among one of the most pressing demands is extending House Rent Allowance to the new tax regime.

4. Extending the Interest limits on housing loans and principal repayments further is another area where the FM can focus, giving the much needed respite to taxpayers. The deduction limit on interest paid on home loans needs to be raised from the current cap of Rs 2 lakh per annum.

5. Salaried individuals expect some deductions to form a part of the New Tax Regime as well. The Finance Act 2023 has amended the provisions to make new tax regime the default tax regime. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. 

6. Salaried class also expects FM Sitharaman to increase the gamut of Standard deduction --an exception being available under both the old and new tax regime.

7. In order to support consumption demand in this country, the PHDCCI has also espoused for sparring the middle class from the 30 per cent tax rate. The industry body has added that this rate must be applicable only to those with taxable income above Rs. 40 lakh.

8. FM Sitharaman had announced no changes in the income tax slab in her Interim Budget speech. Salaried individual are hoping that this time around, FM might make changes in the tax slabs.

9. A key demand from the Central Govt Employees body is the constitution of the 8th pay commission that will see salary hikes being linked to recommended fitment factor. 

10. Top three demands that have been put by forth by Central Govt Employees body are --Immediate Constitution of 8th Central Pay Commission, Scrapping of NPS and Restoration OPS; and Releasing of 18 months DA/DR which was frozen during the COVID -19 Pandemic to employees and Pensioners.