Budget 2024: Is standard deduction going to increase?

S Venkateshwari
Budget 2024: Is standard deduction going to increase?

The budget date for the 2024–2025 fiscal year has been set. On July 23, the general budget of the nation will be presented by Finance minister Nirmala Sitharaman. The nation's salaried class has high expectations for this budget cycle. Experts also predict that the salaried class's purchasing power would rise if the government grants them a tax exemption. As a result, consumption will rise as well. Sources claim that the government is giving this some serious thought as well. Before bringing the budget, a final choice can be made in this respect.

Will acquire the fortitude to tolerate the growing expense of life

The nation's economy is growing quickly, while the salaried class's income is growing relatively slowly. Because of this, the middle class, which is wage-dependent, is cutting back on spending. Additionally, earlier, Finance minister Sitharaman stated that she preferred not to make a judgment on a significant matter like income tax in the interim budget. In this scenario, there's a greater chance that the salaried class will hear good news this time around. They are hoping that this budget will help them avoid the rising expense of living this time around.

Expected changes to the tax slab and standard deduction

The study states that under the New Tax Regime, the Finance Ministry may raise the standard deduction. The amount can be raised from Rs 50,000 to Rs 1 lakh. Large adjustments to the tax slab are also anticipated in addition to this. Currently, it ranges from 5 to 30 percent. Changes to the NPS tax structure are also anticipated in conjunction with this. In addition, the Old Tax Regime allows the government to alter the tax slab.

A huge increase in rent and a desire to raise HRA are present.

Nationwide, home rents have surged dramatically since the Kovid pandemic. This rent severely damages the middle class's finances. It is also anticipated that the house Rent Allowance (HRA) deduction will improve in such a scenario. HRA is currently assigned based on the city. In addition, it is anticipated that a number of large cities, such as hyderabad and Bangalore, will be included in Metro City's service area so that the HRA benefits available to residents of these areas will also extend to those of delhi and Mumbai.

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