The finance ministry which is all set to present the Union Budget 2024 in Modi 3.0, is expected to introduce significant changes to the income tax regime, particularly benefiting salaried taxpayers. According to reports, the government is unlikely to take major twists in the capital gain mechanism. It is anticipated that the government is planning to raise the exemption limit under the new tax regime, which aims to provide relief to middle-class taxpayers and stimulate consumption and economic growth.It is also said that the new regime offers simplified tax rates without many deductions. Individuals currently face a tax rate of 30% for incomes over Rs 15 lakh and are expected to get some relief. The anticipated change would maintain the current structure but increase the initial tax-free threshold, thereby reducing the tax burden for lower-income brackets. Apart from this, the taxpayers earning up to Rs 5 lakh will also see some change coming in.For the old tax regime, which allows for various deductions and exemptions, there are discussions about rationalizing some tax slabs. This could potentially lower the tax rates for certain income groups, such as those earning around Rs 10 lakh annually, which might see a reduction in their tax rates to encourage higher spending. However, it is too early to commit anything. It is also said that the final decision will be taken at the Prime Ministers Office (PMO) level with a positive vibe that middle-class and salaried taxpayers may receive some relief.According to the reports, finance minister Nirmala Sitharaman is expected to table the budget in the third week of July, with the commencement of the Monsoon Session at the Parliament. It is believed that the session will begin on July 22 and will conclude on August 9. Meanwhile, it is worth noting that the union minister during the 53rd GST Council meeting on June 22, the members have announced several recommendations to streamline the process and recommendations. It is important to note that these proposed adjustments are part of the governments broader strategy to boost middle-class consumption and further stimulate the countrys GDP growth amid global economic challenges.
