New Delhi

The salaried class has high expectations from the budget coming on July 23. The biggest reason behind this is that taxpayers did not get much relief in the interim budget of the year 2024. Personal finance experts expect that Finance Minister Nirmala Sitharaman can reduce the highest tax rate in the new tax regime, increase the standard deduction and increase the limit for the highest tax rate in the old tax regime. It is expected that the government will remove the alleged shortcomings of the new tax regime introduced in Budget 2023.

Expectations of the salaried class from the upcoming Budget 2024
1) Cut in tax rates

Divya Baweja, Partner, Deloitte India, told Live Mint, " The changes in the new tax regime are still not as expected. It is expected that the government will consider reducing the maximum tax rate of 30% to 25% and increasing the standard deduction from the current limit of Rs 50,000."

2) Threshold adjustment and deduction limit

Divya said, " The government may also consider increasing the limit for the highest tax rate under the old tax regime from Rs 10 lakh to Rs 20 lakh and increasing the 80C limit as an interim measure."

3) Increase in standard deduction

CA Garima Tripathi, Partner, V Sahai Tripathi & Co, told Live Mint, "The upcoming Budget 2024 brings great expectations for the middle class, especially with regard to increased savings under the old tax regime. The biggest expectation is to increase the Section 80C deduction limit from the current ₹1.5 lakh to possibly ₹2.0 lakh." At the same time, CA Abhishek Jain, partner at Kailash Chand Jain & Co., expects an increase in standard deduction. It was last revised to ₹ 50,000, increasing standard deduction will reduce taxable income, which will provide significant relief amid inflation and rising living cost.

4) Capital gains and investment incentives

Garima Tripathi further added, "Many expect the long-term capital gains (LTCG) exclusion limit to be raised from ₹1 lakh to ₹1.5 or 2 lakh given the growing interest in trading."

5) House Rent Allowance (HRA) and other allowances

CA Abhishek Jain said, "Key expectations include House Rent Allowance (HRA) exemption to offset rising rental costs, especially in metropolitan areas. This will reduce taxable income and provide relief to those living in rented accommodation."