Budget 2024 Expectations Income Tax: Rebate Unlikely To Rise In Budget, Says Report

Budget 2024 Expectations Income Tax: A senior official from the finance ministry on January 9 reportedly said that the upcoming Union Budget, scheduled to be announced on February 1, is not expected to include any hike in tax rebates under the new direct tax regime.

“There is no such proposal,” Moneycontrol quoted the official as saying on condition of anonymity.

Also Read: Budget Expectations 2024: Will Section 80D Enter In New Tax Regime & Deduction Limit Go Up?

There were widespread speculations that the personal income tax rebate might be raised from the existing Rs 7 lakh to Rs 7.5 lakh in the vote-on-account.

Budget 2024 Date

Due to the scheduled general elections in April-May 2024, the budget set to be unveiled on February 1 will be a vote-on-account.

A vote-on-account allows a government reaching the end of its term to secure funding for a brief duration until the approval of a comprehensive budget.

Exemption on TCS likely

The report suggested that the government may announce a waiver of tax collected at source (TCS) on individual overseas credit and debit card expenditures, up to Rs 7 lakh per financial year, in the upcoming interim budget.

An amendment to the Income-Tax Act will be a part of the Finance Bill 2024, another senior government official had told Moneycontrol earlier.

“Since the upcoming budget is a vote-on-account, no other major tax-related announcements are likely,” he had said.

Budget 2024 Expectations

Archit Gupta, founder and CEO, ClearTax, said that while major announcements may hold off until after the 2024 general elections, the upcoming Union Budget presents an opportunity to address lingering concerns and set the stage for future economic growth.

Gupta said that the deduction limit under Section 80D for medical insurance premiums should be increased from Rs 25,000 to Rs 50,000 for individuals and Rs 50,000 to Rs 75,000 for senior citizens, reflecting rising healthcare costs.

Gupta also highlighted that currently, 1% TDS is deducted on property purchases exceeding Rs 50 lakh. While this process is straightforward for resident sellers (using Form 26QB), it becomes more complex for Non-Resident Indian (NRI) sellers.

Under the new tax regime, various exemptions and deductions, including HRA, LTA, 80C, 80D, etc., cannot be claimed.