Industry experts indicate that the imminent interim Union Budget 2023 is not expected to introduce substantial alterations to income tax rebates.
The anticipation surrounding income tax announcements during the Budget presentation is a focal point for many. Salaried individuals await the Finance Minister’s revelations regarding income tax rebates. Per a report by Moneycontrol, indications suggest that the income tax rebate is unlikely to see an increment under the new direct tax regime in the upcoming interim Union Budget 2023. As cited by an official, “There is no such proposal.”
Earlier, a report on January 7, referenced two sources speculating that ahead of the 2024 general elections, FM Sitharaman might augment the tax rebate under the new personal income tax regime, providing relief to the middle class.
Anticipation mounts as industry experts opine that salaried individuals aspire for an escalation in the basic exemption limit and HRA exemption under both the new and old tax regimes.
During the announcement of the Union Budget 2023, Union Finance Minister Nirmala Sitharaman unveiled altered income tax slabs, with up to ₹7 lakh rebate under the new income tax regime.
Interim Budget 2024
On February 1, Union Finance Minister Nirmala Sitharaman will present the Union Budget 2024. With the Lok Sabha elections scheduled early next year, no major announcements are expected. The complete Budget will be presented once the new government is formed post the general elections. The interim budget typically encompasses expenditure estimates, revenue, fiscal deficit, financial performance, and forecasts for the forthcoming financial year of the incumbent government without major policy declarations.
To aid the hard-working middle class, Nirmala Sitharaman made five significant announcements pertaining to personal income tax during the Union Budget 2023-24 presentation. These announcements encompassed rebates, alterations in the tax structure, extension of the standard deduction benefit to the new tax regime, reduction of the highest surcharge rate, and extension of the tax exemption limit on leave encashment upon the retirement of non-government salaried employees, all designed to yield substantial benefits to the working middle class.
