New Delhi: Union Budget 2024 is set to be presented in Parliament today by Finance Minister Nirmala Sitharaman. This years budget assumes critical importance as it will delineate the governments economic roadmap and priorities for the upcoming fiscal year, aligned with the Viksit Bharat 2047 Vision. Anticipation is high among citizens and industry stakeholders alike, as they await crucial announcements on income tax reforms and economic stimuli.With the economy recovering from recent challenges, Budget 2024 is expected to introduce measures aimed at bolstering consumer sentiment and supporting economic growth. A key highlight of todays presentation will be the governments strategy to provide relief through income tax adjustments while maintaining fiscal discipline.Key income tax changes under considerationIncrease in exemption limitOne of the most anticipated changes is a potential increase in the income tax exemption limit under the new tax regime. Currently set at Rs 3 lakh, speculation suggests the limit could be raised to Rs 5 lakh. Such a move would alleviate tax burdens for many individuals, potentially stimulating spending and economic activity.Rationalisation of tax slabsThere is also considerable discourse around rationalising tax slabs to make the system more equitable. Currently, the 20% tax bracket for income between Rs 12-15 lakh annually and the 30% bracket for incomes above Rs 15 lakh may see adjustments. Proposals include applying the 30% rate only to incomes exceeding Rs 30 lakh, and revising the 15% rate for incomes between Rs 9-12 lakh annually.Boost in standard deductionAnother area of interest is a possible increase in the standard deduction, currently set at Rs 50,000. Experts believe this could be raised to Rs 1,00,000, offering significant relief to taxpayers and potentially enhancing disposable incomes.Capital gains tax rationalisationInvestors are keenly watching for changes in capital gains taxes, hoping for a more balanced approach that supports market stability while ensuring adequate revenue generation for the government. Any adjustments in this domain could have profound implications for investment patterns and market dynamics.Broader economic implicationsThe overall direction of Budget 2024 is expected to focus on stimulating consumption, boosting investments in infrastructure, and maintaining fiscal prudence. These measures are aimed at fostering sustainable economic growth and consolidating Indias position as a global economic powerhouse.
