What taxpayers and common people expect from Union Budget 2024?

Union Finance Minister Nirmala Sitharaman will present the Budget 2024-25 on Tuesday, amid high hopes for a pro-growth Budget which will fulfil the hopes and ambitions of the lower strata of society and the middle class. Once again, individual taxpayers are keeping their fingers crossed, hoping for income-tax reliefs in this highly inflationary environment.

Earlier, the government brought in several changes to make the new tax regime more attractive for taxpayers. While the tax was exempted on annual income up to Rs 7 lakh in the new regime, the old regime was as it is.

Meanwhile, economic experts are of the view that the limit of tax exemption should be increased and the rate of tax should be decreased in both systems. They are also of the opinion that the standard deduction should be increased from Rs 50,000 to Rs 1 lakh and the deduction of Rs 1.5 lakh under 80 C should be increased further.

“I expect that the slabs will be a little better to facilitate a return file of Rs 10 crore from Rs 7 crore,” said economic expert AK Sabat.

“At least the limit under 80 C should be revised so that there will be an increase in general savings,” said taxpayer SK Patra.

The skyrocketing prices of essential commodities like rice, pulses, potatoes, onions, petrol, diesel and cooking gases have affected the budget of common people hard by pinching their pockets. Hence homemakers and taxpayers are expecting that there should be proper provision in the budget keeping an eye on the running inflation for the last 10 years.

Hence, demand has been raised from different quarters for reforms in tax slabs. As per the All India Federation of Tax Practitioners (AIFTP), reforms are essential in the old and new regime of tax slabs and the limit of tax exemption should be increased to Rs 5 lakh. AIFTP has written a letter to Finance Minister Nirmala Sitharaman requesting her to change the income tax slab to 10 per cent from Rs 5-15 lakh, 20 per cent from Rs 10-15 lakh and 25 per cent for more than Rs 20 lakh.

Economists are also expecting that there will be provisions in the budget to control inflation so that there will be an increase in the savings of common people.

“Living has become pretty tough for the middle-class people. I hope that provision will be made in the budget to control the inflation,” said homemaker Jyotirmayee Rath.

“It is expected that the interest rate will be reduced to keep a curb on the inflation. I don’t think that there will be any change in the old regime,” said economic expert Trinath Lenka.

As a target has been set to make India the third-largest economy in the world by 2027, manufacturing and housing will be Sitharaman’s focus. Besides, it is also expected that importance will be given to education, employment, skill development and tourism.