Will Finance Minister Nirmala Sitharaman revise the income tax slabs for 2024-25 in the Union Budget 2024?

Experts believe changes in the new default tax regime are likely to make it more attractive for salaried taxpayers, the middle class, and the common man. However, no changes are expected in the old tax regime, as the government aims to incentivize the new regime.

Key Expectations for Budget 2024

• 1. Income Tax Slabs: A 30% income tax rate may be applied to incomes above Rs 20 lakh, instead of the current Rs 15 lakh, to benefit the middle class.
• 2. Standard Deduction: The limit may be increased from Rs 50,000 to Rs 1 lakh in the new tax regime to encourage a switch from the old regime.
• 3. Basic Exemption Limit: Currently at Rs 3 lakh, experts suggest raising it to Rs 5 lakh, with a potential rebate limit increase from Rs 7 lakh to Rs 8 lakh.
• 4. Section Changes: Anticipated adjustments in Section 80C (savings and investments), Section 80D (medical insurance), and Section 80TTA (interest on bank deposits).
• 5. Senior Citizens: Possible higher basic exemption limit under the new tax regime.

Stay tuned for live updates on these potential changes.