In Budget 2024, the government may provide relief to taxpayers under the new tax regime. It is being said that the Finance Ministry is considering increasing the standard exemption limit in the new tax regime without disturbing the old tax system in income tax.
Income Tax Budget 2024: Union Finance Minister Nirmala Sitharaman may present the full Union Budget for the financial year 2025 in the second or third week of July next month. In this budget, the common people have high expectations from the Bharatiya Janata Party government which has come to power for the third consecutive time. At the same time, taxpayers who pay income tax are also waiting for a big relief from the government.
Exemption will be available under the new tax system!
According to the information revealed, in Budget 2024, the government can give relief to taxpayers under the new tax regime, it is being said that the Finance Ministry is considering increasing the standard exemption limit in the new tax regime, without disturbing the old tax system in income tax.
While there is no possibility of change in the capital gains system, this is an issue on which the Income Tax Department wants a review. Let us tell you that before the presentation of the budget, Finance Minister Nirmala Sitharaman is holding meetings with experts on various issues.
What is standard discount?
Let us tell you that the income tax exemption limit (standard deduction) is a fixed amount which a salaried person can deduct from his taxable income without providing proof of actual expenditure. Its purpose is to create fairness between employed people and persons earning income from business. Standard deduction in tax is applicable in both the old and new income tax systems.
Standard deduction introduced in Budget 2023
Let us tell you that in the Union Budget for the year 2023, Finance Minister Nirmala Sitharaman introduced a standard deduction of Rs 50,000 for salaried taxpayers and pensioners under the new tax system. This standard deduction became the default option, although the taxpayer can also turn it off.
Apart from this, under the new tax regime, the exemption under section 87A was increased on income less than Rs 7 lakh. After this change, taxpayers with income less than Rs 7 lakh get exemption in payment of taxes under the new tax system.
