Budget 2024: Will Finance Minister Nirmala Sitharaman increase income tax exemption limit?

Finance Minister Nirmala Sitharaman's upcoming Budget 2024, marking the beginning of Modi 3.0's third term, is anticipated to introduce significant tax reforms aimed at benefiting taxpayers. \r

Reuters reports suggest potential reductions in income tax rates for individuals earning annual incomes up to ₹10 lakh, alongside plans to raise the income tax exemption threshold from ₹3 lakh to ₹5 lakh under the new tax regime. Factors influencing these changes include economic recovery indicators, government priorities emphasizing fiscal discipline versus taxpayer relief, and political dynamics. \r

Additionally, calls for revising Section 80C limits and increasing interest deduction limits under Section 24(b) to stimulate savings and promote homeownership are gaining traction. The budget, scheduled for presentation in Parliament's third week of July, follows Sitharaman's interim budget earlier this year, reflecting ongoing economic strategies amid evolving national priorities.