📷 Image Credits: Mint
The anticipation for the upcoming Union Budget 2024 is at an all-time high as taxpayers eagerly await Finance Minister Nirmala Sitharaman’s announcements regarding potential changes to the old and new income tax regimes. Scheduled for July 23, this budget marks Sitharaman’s seventh consecutive budget presentation and the first full budget of Modi 3.0. Analysts and tax experts are suggesting adjustments to tax slabs and rates to better align with the current economic landscape.
Archit Gupta, the founder and CEO of Clear, recommends reintroducing deductions under section 80EEB in both tax regimes to encourage taxpayers to invest in environmentally sustainable options like electric vehicles. This deduction allows for up to ₹1.5 lakh on the interest paid for loans taken to purchase electric vehicles, promoting eco-friendly choices among taxpayers.
Regarding the new income tax regime, Gupta proposes a revision in the tax rate for individuals earning between ₹15 lakh and ₹20 lakh. By lowering the current 30% rate to 22%-25%, taxpayers in this bracket would experience a significant reduction in their tax burden, providing much-needed relief. Abhishek Soni, the CEO and Co-founder of Tax2win, emphasizes the necessity for adjustments in tax slabs and rates in the old regime to maintain fairness and reflect current economic conditions.
Soni suggests that the changes might involve revising the thresholds at which higher tax rates apply or introducing new brackets to distribute the tax burden more equitably. Moreover, he highlights the importance of simplifying the structure of the new income tax regime by potentially expanding the scope of deductions or tax credits available to taxpayers. These enhancements could encourage savings, investments, and support broader economic goals such as fostering entrepreneurship and innovation.
With the budget proceedings scheduled to commence at 11 AM on July 23 in the Lok Sabha, the developments will be broadcasted live on official channels and streamed online for public viewing. As the anticipation grows, taxpayers and analysts alike are keenly waiting to see the proposals set forth by Finance Minister Nirmala Sitharaman in the Union Budget 2024, hoping for positive changes that align with the current economic scenario.
