Budget 2024: Experts believe that the major announcements on tax benefits during the budget presentation are likely to be on hold till Lok Sabha Elections 2024.
Budget 2024: Union Finance Minister Nirmala Sitharaman is all set to present Budget 2024 on February 1 and taxpayers across the country are eagerly waiting for announcements on income tax benefits. In the meantime, it is believed that the major announcements on tax benefits are likely to be on hold till Lok Sabha Elections 2024.
Talking about budget expectations, Archit Gupta, Founder, and CEO of ClearTax told Mint Live that the upcoming Budget will present an opportunity to address lingering concerns and set the stage for future economic growth. He added that it is most likely that this budget would prioritise fiscal discipline and avoid populist measures. Check what tax benefits you could expect from Budget 2024
80D Deduction Limit
Archit Gupta said the deduction limit under Section 80D for medical insurance premiums should be increased from Rs 25,000 to Rs 50,000 for individuals and Rs 50,000 to Rs 75,000 for senior citizens, reflecting rising healthcare costs. He also stated that extending the Section 80D benefits to the new tax regime would promote equitable access to healthcare.
Bengaluru as metro city for HRA exemption
Archit Gupta said despite being recognised as a metro city by the Indian Constitution, Bengaluru is still classified as a non-metro for income tax purposes. He said this is limiting HRA deductions to 40% for its residents instead of the 50% available in other metro cities.
Taxation Of Capital Gains
He said the current complicated capital gains tax regime is a challenge for investors, with numerous factors to consider, such as asset classes, holding periods, tax rates, and residency status.
He added that if the centre should streamlines the classification of equity and debt instruments, unify tax treatment for listed and unlisted securities, and simplify indexation provisions.
TDS Guidelines For Home Buyers
According to Archit Gupta, 1% TDS at present is deducted on property purchases exceeding Rs 50 lakh. This whole process is simple for resident sellers (using Form 26QB), however, it becomes complicated for Non-Resident Indian (NRI) sellers.