Income Tax News: On February 1, 2024, Finance Minister Nirmala Sitharaman will announce the Interim Budget 2024-25. While big announcements are unlikely to occur until after the 2024 Lok Sabha elections.
Budget’s Opportunity for Economic Growth
“The upcoming Union Budget presents an opportunity to address lingering concerns and set the stage for future economic growth. It is most likely that this budget would prioritise fiscal discipline and avoid populist measures,” said Archit Gupta, Founder, and CEO, of ClearTax. Gupta noted that there is anticipation for potential relief in the area of personal income tax, particularly under the New Tax Regime. Here are the income tax benefits expected in Budget 2024.
80D Deduction Limit
To reflect rising healthcare costs, the Section 80D deduction maximum for medical insurance premiums should be increased from 25,000 to 50,000 for people and from 50,000 to 75,000 for senior persons.
Make TDS compliance easier for house purchasers
“Currently, 1% TDS is deducted on property purchases exceeding ₹50 lakh. While this process is straightforward for resident sellers (using Form 26QB), it becomes more complex for Non-Resident Indian (NRI) sellers,” said Archit Gupta.
Capital gains taxation should be simplified
The current capital gains tax structure is complex, with various aspects to consider, including asset classes, holding periods, tax rates, and resident status.
Bengaluru would be designated a metro city for HRA exemption purposes
Despite the fact that Bengaluru is designated as a metro city by the Indian Constitution, it is categorised as a non-metro for income tax purposes. According to Gupta, this limits HRA deductions for its inhabitants to 40% rather than the 50% offered in other metro cities.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER
