Budget 2024 : Finance Minister Nirmala Sitharaman Presents Budget In Lok Sabha

Budget 2024 Updates: Finance Minister Nirmala Sitharaman is currently presenting the Union Budget in Lok Sabha. All eyes will be on her 7th speech in Parliament as she is presenting the second budget this year after the formation of the PM Modi-led NDA government at the Centre for the third consecutive time. FM Sitharaman will need to do a tight ropewalk to strike a perfect balance between a burgeoning middle-class income tax payers seeking relief in both Old Tax and New Tax Regime, industry seeks continued capex and the NDA allies who seek special assistance.

The industry body CII has also sought income tax relief for those in lowest income tax slab. Budget expectations include raising the Section 80C deduction limitations, loosening tax slabs, improving LTCG exemptions, streamlining F&O trading taxation, lowering tax rates on cryptocurrency gains, as well as cutting taxes on speculative income. Industry hopes the government can improve the financial climate. In addition to giving taxpayers immediate relief, these actions would encourage saving and investing, which will fuel long-term economic growth in India. Experts believe that the middle class is the cornerstone of the Indian economy and sustained development depends on promoting their financial well-being.

The salaried class has high expectations from this year’s budget including increase in standard deduction limit to cope up with rising inflation. The inflation has pretty much been 6 to 7-% year on year. The salaried class also hopes for an increase in minimum slab rate from Rs 2.5/3 lakh to Rs 5 lakh. Moreover, there has no increase in 80C limit since a decade. Salaried class always made structured investments and savings and moving to new tax regime deprives them of these benefits. To make new tax regime attractive to Salaried class, it is essential to allow them exemption for interest paid on Housing Loan, HRA and deduction for employees’ contribution to PF and health insurance.