Budget 2024: Will new income tax system receive added boost?
Budget 2024: Will new income tax system receive added boost?
The Union Budget 2023–24 has several benefits for the new income tax system, and the Interim Budget, which is scheduled to be announced on february 1st, may give it even more support. Presented in the Union Budget 2020–21, the new tax system gave taxpayers an alternative to the previous one and went into effect as the default option on april 1, 2023. Changes were made by Finance minister Nirmala Sitharaman last year, who also allowed for a standard deduction of Rs 50,000 and lowered the surcharge for persons with higher incomes. There may be more improvements to the new income tax system.Raising the fundamental exemption thresholdSalaried people are expecting improvements as the government prepares to unveil its interim budget before the general elections.The CEO and co-founder of Tax2win, abhishek Soni, stated to livemint.com that he anticipates a rise in the basic exemption threshold under the current and future tax regimes. people also want the standard deduction limit, HRA exemption, and health insurance premium deduction to increase under the new system.NPS ceiling riseTata Pension Management CEO Kurian Jose suggests raising the National Pension Scheme (NPS) cap to Rs 1,00,000 for both tax regimes. This action might encourage people to think about the new tax structure.Interest on mortgages is deductibleDue to the possibility of losing their ability to deduct house loan interest, salaried individuals who have housing loans are hesitant to switch to the new tax structure. According to abhishek Soni, it might be more appealing to include the interest deduction for house loans in the new tax system. This benefit would be attractive to a large number of middle-class taxpayers who have mortgage debt.
The Union Budget 2023–24 has several benefits for the new income tax system, and the Interim Budget, which is scheduled to be announced on february 1st, may give it even more support. Presented in the Union Budget 2020–21, the new tax system gave taxpayers an alternative to the previous one and went into effect as the default option on april 1, 2023. Changes were made by Finance minister Nirmala Sitharaman last year, who also allowed for a standard deduction of Rs 50,000 and lowered the surcharge for persons with higher incomes. There may be more improvements to the new income tax system.Raising the fundamental exemption thresholdSalaried people are expecting improvements as the government prepares to unveil its interim budget before the general elections.The CEO and co-founder of Tax2win, abhishek Soni, stated to livemint.com that he anticipates a rise in the basic exemption threshold under the current and future tax regimes. people also want the standard deduction limit, HRA exemption, and health insurance premium deduction to increase under the new system.NPS ceiling riseTata Pension Management CEO Kurian Jose suggests raising the National Pension Scheme (NPS) cap to Rs 1,00,000 for both tax regimes. This action might encourage people to think about the new tax structure.Interest on mortgages is deductibleDue to the possibility of losing their ability to deduct house loan interest, salaried individuals who have housing loans are hesitant to switch to the new tax structure. According to abhishek Soni, it might be more appealing to include the interest deduction for house loans in the new tax system. This benefit would be attractive to a large number of middle-class taxpayers who have mortgage debt.