Budget 2024: Taxpayers May Get Relief, Income Tax Exemption Limit May Increase From Rs 7–8 Lakh

Finance Minister Nirmala Sitharaman will present the interim budget on February 1, ahead of the general elections. Experts expect the interim budget to focus on increasing the income tax exemption limit, supporting women entrepreneurs, introducing a long-term taxation policy, and boosting consumption and savings.

Increase in income tax exemption limit

"This will be an interim budget, but it may give some indications for the full budget. Some relief may be given to individual taxpayers under Section 87A. The total tax exemption limit may be increased from ₹7 lakh to ₹8 lakh," said Narayan Jain, National President of All India Federation of Tax Practitioners.

More tax on MSMEs

N.G. Khaitan, President of the Federation of Indian Chambers of Commerce and Industry (FICCI), said there is a need to bring in parity in long-term tax policy and taxation between companies, partnerships, and limited liability partnerships (LLPs) to give a level playing field to small and medium businesses. He said that MSMEs contribute significantly to the country's GDP and employment generation, but they are taxed more.

Single hybrid scheme may be introduced

Vivek Jalan, Chairman of the Fiscal Affairs and Taxation Committee of the Bengal Chamber of Commerce, said a 'single hybrid scheme' may be introduced, incorporating some deductions for personal income taxation.