Budget 2024 latest updates: Experts believe that what has not happened in 10 years, is probably going to happen this year. Because, growth is on track, inflation has to be controlled. Interest rates have to be reduced. The role of taxpayers is very big for all this.
Budget 2024 latest updates: Preparations for the budget have started. And everyone will be waiting to see whom the Finance Minister gives what gift this time. But, the employed wait the most. Those who hope that they might get some tax relief. Something similar is happening this time too. However, the circumstances are different this time. It is election year. There will be an interim budget. In such a situation, the Finance Minister will also keep his eyes on certain sections only. Experts believe that what has not happened in 10 years is probably going to happen this year. Because, growth is on track, inflation has to be controlled. Interest rates have to be reduced. The role of taxpayers is very big for all this. If consumption is to be promoted, taxpayers will have to be pleased.
Boom in direct tax collection
The government’s direct tax collection has been quite good. Earnings are continuously increasing. There has been an increase of 17.01% in the director tax collection for the financial year 2023-24 till December 17, 2023. There has also been a jump of 20.66% in net direct tax collection. There is also a rise in the inflation of food items. Reserve Bank of India has also alerted for the coming months. At the same time, growth is good, but for growth above 8 percent, more money is required in the hands of taxpayers. All these circumstances indicate that some relief in tax matters is necessary.
Standard deduction limit may increase
If sources are to be believed, the government can increase the limit of standard deduction while giving relief to the taxpayers. At present the standard deduction is Rs 50,000. KPMG has demanded to increase it to Rs 1 lakh. Considering the expenses like travel, printing, stationery, books, staff salary, vehicle running, maintenance, mobile expenses, their allowance should be increased. The standard deduction of Rs 50,000 is not enough to meet all these expenses. Considering inflation and increasing standard of living, standard deduction should be increased to Rs 1 lakh.
ASSOCHAM has also made demand
According to ASSOCHAM, the deduction of Rs 50,000 is not a big relief for the salaried class. The salary bracket of all taxpayers is not the same, hence this relief is not enough for a large number of taxpayers. The Institute of Chartered Accountants (ICAI) has also demanded that standard deduction should be based on inflation indexed adjustment.
Standard deduction limit may increase
If sources are to be believed, the government can increase the limit of standard deduction while giving relief to the taxpayers. At present its limit is Rs 50000. It can be increased. Personal finance experts also believe that it should be increased to Rs 1 lakh. In such a situation, the government can provide relief by including it in the budget wishlist. Sources believe that in the budget, the standard deduction limit for salaried and pensioners can be increased from the current Rs 50,000 to Rs 75,000.
