MUMBAI: Experts feel an amendment can be proposed for the application of standard deduction as a percentage of an individual’s salary income, ensuring fair and equal benefits for all employed individuals.
Budget 2024 Expectations:
Salaried individuals have not received any additional relief in the form of a standard deduction, as it has remained unchanged for all individuals, regardless of their income levels.
The upcoming Interim Budget 2024, scheduled to be presented in Parliament on February 1, is eagerly anticipated by taxpayers who hope for some relief in income tax. There are expectations of an increase in the standard deduction in the forthcoming interim budget.
The standard deduction underwent its last revision in 2019, coinciding with an interim budget. However, the most recent Budget in 2023 extended this benefit to the new tax regime as well. Presently, a standard deduction of Rs 50,000 is permissible.
Budget 2024 Expectations For Salaried Employees
The standard deduction serves as a uniform tax relief for individuals receiving a salary. It represents the amount subtracted from the gross annual salary, consequently reducing the tax liability. To illustrate, if an individual’s annual salary is Rs 7,50,000, a deduction of Rs 50,000 is applied, and the tax is then computed based on the remaining amount (Rs 7,00,000).
Experts feel an amendment can be proposed for the application of standard deduction as a percentage of an individual’s salary income, ensuring fair and equal benefits for all employed individuals.
Anand Rathi Advisors Limited (ARAL), the investment consultants, came up with a comprehensive and exclusive report that gives an overview of the impact of tax on household consumption.
The report largely covers detailed insights highlighting the impact of taxation on consumption patterns in India and recommendations to alleviate the tax burden on the middle class.
