Union Budget 2024 Expectations: This time taxpayers of both new and old regimes will get gifts

Union Budget 2024: Finance Minister Nirmala Sitharaman can make big announcements for the new regime of income tax and the taxpayers of the old regime on July 23. The government is thinking about reducing the tax burden on middle class taxpayers

Union Budget 2024: There are about two weeks left for the presentation of the Union Budget. Finance Minister Nirmala Sitharaman will present the budget in the Lok Sabha on July 23. This will be the full budget for the financial year 2024-25. On February 1 this year, she presented the interim budget. Taxpayers have the highest expectations from this budget. It is expected that the Finance Minister will give big relief in the budget for the new regime of income tax and the taxpayers of the old regime. Let us know about this in detail.

Attraction of the new regime will increase

Finance Minister Nirmala Sitharaman had announced the new regime of income tax (Income Tax new Regime) in Budget 2020. Its purpose is to reduce the tax burden on those people who do not do any kind of tax-savings. In last year’s budget, the Finance Minister had made several announcements to increase the attraction of the new regime. The reason for this is that even after several years of its launch, taxpayers have not shown interest in using the new regime. It is expected that this time too the Finance Minister will make some big announcements for the new regime in the budget.

Deduction will be available on insurance

Experts say that taxpayers using the new regime can be allowed deduction on at least term life insurance and health insurance. The reason for this is that both of these do not come under the category of investment. Today term life insurance and health insurance have become necessary for every person. Therefore, taxpayers of the new regime should be allowed deduction on both. This will increase people’s interest in buying health and term insurance. Insurance regulator IRDAI has set a target of providing insurance policy to every person by 2047.

Tax burden will be reduced in the old regime

There is a need to reduce the tax rate in the old income tax regime. Experts say that currently 30 percent tax is levied on income above Rs 10 lakh. This is too much. This means that a person with a taxable income of Rs 90-95 thousand every month loses Rs 27,000 in tax every month. The middle class is already troubled by the way inflation has increased in the last few years. In such a situation, this tax burden is too much for them. Major industry chambers have also advised the Finance Minister to reduce the tax burden on the middle class.

Old income tax regime

New income tax regime

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