Interim Budget 2024: The middle class of the country has been demanding for years that the limit of tax exemption and deduction under Section 80C of Income Tax should be increased. Is this limit going to increase this time – know about it…
Interim Budget 2024: The country’s budget will be presented on February 1, 2024 and this is the last budget of the Modi government at the Center before the general elections 2024. Although this budget is being brought as an interim budget only for a few months, but the general public, corporate, sector experts, industry, poor, farmers, housewives, students, middle class all have very high expectations from this budget. .
There has been a demand for years for Section 80C to increase the tax exemption limit of Rs 1.5 lakh available under it. Will this demand be met this time? Let us know what financial experts have to say about this-
Nishant Khemani, Managing Partner, Saturn Consulting Group, says that to remove inconsistencies in the existing legal provisions, some reforms regarding direct and indirect taxation should be discussed and desired changes should be brought in this budget. Some of them are as follows-
Direct tax
In the current direct tax system, the 15 percent concession on corporate tax rate is available only for new domestic manufacturing companies which will complete their operations by March 31, 2024. This should especially be implemented for all the companies in the country and they should also be brought under the ambit of corporate tax on the basis of concessional rate. The incoming tax policy administration should further extend the sunset clause.
The limit of deduction available under section 80C/80D is expected to increase.
The deduction limit of Rs 1.50 lakh available under section 80C and tax exemption of Rs 25,000/50,000 available under section 80D should be increased. Especially because all such people take advantage of this deduction limit.
Will there be exemption like 80C in the new tax regime?
Under the new tax regime, there are expectations of more tax deductions and exemptions like sections 80C and 80D and benefits like tax exemption on home loans.
Decision will be taken on advance tax late submission installment
At present, if the due date of advance tax installment is missed, interest of 3 months is charged and there should be a change in this. In case of TDS, penalty should be imposed for the number of months in which there is delay in paying the advance payment.
There is currently no relevant timeline for disposal of cases pending before the CIT and a timeline should be brought in to expedite the litigation process.
There may be changes regarding HRA rates!
Since Bangalore has been recognized as a metropolitan city, the employees here should also get a deduction of 5 percent in HRA like it is available in other metropolitan cities.
There are many discrepancies in the current capital gains taxation such as the difference in taxation rates for STT paid equity shares and non-STT paid equity shares. Streamlining capital gains taxation is the need of the hour.
