Income Tax News: What to Expect in Budget 2024! Projections for Income Tax Shifts, Featuring Medical Insurance and Capital Gains

Income Tax News: On February 1st of the following year, Finance Minister Nirmala Sitharaman will deliver the Union Budget 2024. Since the Lok Sabha elections are scheduled for early next year, this budget will only be temporary. Following the formation of the new administration, the entire FY25 budget will be presented. Finance Minister Nirmala Sitharaman, who unveiled her first complete budget in July 2019, will be presenting her sixth budget.

Anticipated Changes in Budget 2024

In Budget 2024, tax experts expect big changes, with two key areas being addressed: expanding medical insurance premium deductions and streamlining the capital gains tax system. In order to understand what to anticipate in terms of deductions and taxation under the new and old tax regimes, Livemint spoke with income tax specialists.

Old income tax regime, Expectations from Budget 2024

• Raise the individual's Section 80D medical insurance premium deduction limit from 25,000 to 50,000.
• In light of growing healthcare costs, raise the senior citizen deduction limit under Section 80D for medical insurance premiums from 50,000 to 75,000.
• Simplifying the capital gains tax system by achieving parity amongst different asset classes.

New income tax regime, Expectations from Budget 2024

• In order to guarantee equitable access to healthcare tax benefits, extend the Section 80D deduction for medical insurance premiums under the new regime.
• Reintroduce Section 80CCG, which would offer enticing deductions for investments made in index funds or diversified mutual funds. This would encourage retail stock market participation and long-term wealth creation.

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