As Finance Minister Nirmala Sitharaman prepares to present the interim Union Budget 2024 on February 1, speculations are rife regarding potential revisions in tax exemptions, particularly in the Old Tax Regime. Reports suggest that additional tax waivers and exemptions, especially at the lowest income levels, might be announced, bringing a mix of anticipation and curiosity.Incremental changes in old tax regimeAccording to a senior government official cited by Business Standard, the upcoming budget could introduce some modifications to the Old Tax Regime. The focus is expected to be on the lowest income levels, offering additional measures, particularly benefitting women farmers. An increase in income tax exemption rates, potentially reaching ₹7 lakh, is also on the horizon.Balancing fiscal concernsDespite the potential tax revisions, it is projected that these changes, along with any announcements to enhance direct taxes, will not significantly impact the governments fiscal deficits. The government aims to strike a balance between providing relief to taxpayers and maintaining fiscal responsibility.Understanding Budget 2024: One should know these key terms https://t.co/jdR2s7IxvS #Budget2024 #news #Topindiannews— Top Indian News (@topindiannews_) January 16, 2024Interim Budget 2024: A prelude to full budgetFinance Minister Sitharaman clarified that the interim budget on February 1 will not feature spectacular announcements. Given the context of being a vote-on-account, it will primarily address immediate expenditures, steering clear of major tax reforms or policy changes. The interim budget will serve as a bridge for the first quarter of the new financial year.Women farmers and Income Tax exemption ratesThe potential measures for women farmers underscore a commitment to gender-inclusive policies. If implemented, these changes could bring additional financial benefits to women engaged in agriculture. Simultaneously, the speculated income tax exemption rates close to ₹7 lakh indicate a move towards providing relief to taxpayers within the Old Tax Regime.Looking beyond February: Full Union Budget 2024The complete Union Budget 2024 is scheduled for presentation in July, following the declaration of Lok Sabha election results and the formation of a new government cabinet. The interim budget serves as a precursor, offering glimpses of the governments fiscal approach before the comprehensive budget is unveiled.Meanwhile, as the nation awaits the interim Union Budget, the focus remains on the nuanced changes in the Old Tax Regime. The potential adjustments, particularly in favor of women farmers and the middle-income segment, reflect a measured approach to taxation. While the interim budget may not be laden with sweeping reforms, it provides a preview of the governments priorities in addressing immediate fiscal needs.
