Budget 2024: A direct tax practitioners’ body has urged the union government to reduce the personal income tax burden on citizens in the upcoming budget later this month.
Budget 2024 Expectations Income Tax
All India Federation of Tax Practitioners (AIFTP) president Narayan Jain stated that the exemption limit should be increased to Rs 5 lakh.
Also Read: Budget 2024: Income Tax Expectations From Finance Minister Nirmala Sitharaman
He emphasized the need for simplifying the tax structure to ease compliance.
“Income between Rs 5 lakh to Rs 10 lakh be taxed at 10 per cent, between Rs 10 lakh to Rs 20 lakh at 20 per cent, and income above Rs 20 lakh at 25 per cent,” Jain said in his memorandum to the Finance Minister Nirmala Sitharaman.
Jain suggested eliminating the surcharge and cess, arguing that their continuation is no longer justified.
He said that the government does not adequately explain how the education cess is utilised, emphasizing that providing education and medical facilities is a fundamental duty of the government.
The memorandum also addresses the tax rate under section 115BBE on unexplained cash credits, loans, investments, and expenditures, which was increased to 75 per cent plus cess during the demonetization period.
Jain advocates for reverting this rate to the original 30 per cent.
Budget 2024 Standard Deduction
The finance ministry is reportedly considering raising the standard deduction limit for income taxpayers under the new tax regime while leaving the tax exemption-heavy old regime unchanged.
The finance minister may consider increasing the standard deduction to up to Rs 1 lakh per annum in the upcoming budget.
Budget 2024 Date
The Union Budget for 2024-25 will be presented on July 23rd, 2024. This is the full budget, following an interim budget presented earlier this year.
(With PTI inputs)
