Budget 2024: Union Finance Minister Nirmala Sitharaman will present the budget (Union Budget 2024) for the sixth time on 1 February 2024. Nirmala Sitharaman is going to present the last budget of the second term of the Modi government because after that Lok Sabha elections are going to be held across the country. In such a situation, the government can make many announcements to cash in on its vote bank, especially for the salary class.
Budget 2024: Union Finance Minister Nirmala Sitharaman will present the budget (Union Budget 2024) for the sixth time on 1 February 2024. Nirmala Sitharaman is going to present the last budget of the second term of the Modi government because after that Lok Sabha elections are going to be held across the country. In such a situation, the government can make many announcements to cash in on its vote bank, especially for the salary class. The government can increase the standard deduction for employed people. Employed taxpayers are hoping that the government increases the standard deduction from Rs 50,000 to Rs 1 lakh. So that the money coming into their hands can increase a little and it can help them deal with rising inflation. However, Finance Minister Nirmala Sitharaman has said that no major announcements will be made in the budget but the government can make some special announcements for its vote bank.
Taxpayers get standard deduction
People working under the Income Tax Act have got a special relief. People receiving pension can also take advantage of this. This is called Standard Deduction. In this, a certain amount is deducted from the taxable income of the employed person. This reduces the taxable income of the employee, which also reduces his tax liability i.e. the tax payable.
Taxpayers get so much relief
The amount for standard deduction is fixed at Rs 50,000. All taxpayers and pensioners can take advantage of this. Taxpayers doing government and private jobs can take advantage of this. Self-employed taxpayers do not get the benefit of standard deduction. Similarly, taxpayers doing business also do not get this relief.
Under which section is this relief available?
Standard deduction is given under Section 16 of the Income Tax Act, 1961. The special thing is that whether the annual income of the taxpayers is low or high, they are allowed to deduct only a certain amount. Therefore, low income taxpayers get a lot of relief from this.
When did it start?
The standard deduction was introduced in 1974. But, later this provision was abolished. It was reintroduced in the Union Budget 2018. Till now, the benefit of standard deduction was available only to those taxpayers who used the old regime of income tax. Now those taxpayers who use the new income tax regime can also avail its benefit. This was announced in the budget presented on 1 February 2023.
