The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, includes several key changes aimed at benefitting salaried class taxpayers. Here’s a detailed look at how the budget impacts this group:
Key Provisions Affecting Salaried Class Taxpayers
- Revised Tax Slabs and Rates:
- The budget introduces revised income tax slabs, providing relief to middle-income groups. The new slabs aim to reduce the tax burden on salaried individuals.
- The minimum taxable income threshold has been increased, allowing more individuals to fall into lower tax brackets.
- Standard Deduction:
- The standard deduction for salaried individuals has been increased. This deduction allows taxpayers to reduce their taxable income, thereby lowering their tax liability.
- Simplification of Tax Filing:
- The budget proposes measures to simplify the tax filing process, making it easier for salaried individuals to comply with tax regulations.
- Introduction of pre-filled tax returns to reduce the compliance burden and errors in tax filings.
- Increase in Section 80C Limit:
- The budget raises the limit under Section 80C of the Income Tax Act, which includes investments in various savings schemes like PPF, EPF, life insurance, and more. This provides an additional avenue for salaried individuals to save on taxes.
- Hike in HRA Exemption:
- House Rent Allowance (HRA) exemption limits have been increased, benefitting those who live in rented accommodations. This change will allow taxpayers to claim higher exemptions, reducing their overall tax liability.
- Interest Deduction on Home Loans:
- Increased deductions on interest paid for home loans under Section 24(b), providing significant relief to salaried individuals with housing loans.
- Health Insurance and Medical Expenditure:
- The budget enhances deductions available under Section 80D for health insurance premiums and medical expenses, encouraging salaried taxpayers to invest in health insurance.
- Leave Travel Allowance (LTA):
- Modifications in the LTA provisions to make it more beneficial and accessible for salaried employees.
Additional Benefits
- Digital and Online Filing Incentives:
- Incentives for online and digital tax filings, aiming to make the process more efficient and user-friendly.
- Tax Relief for New Entrepreneurs:
- Special provisions for salaried individuals who venture into entrepreneurship, providing tax relief during the initial years of their business.
Conclusion
The Budget 2024 brings several positive changes for salaried class taxpayers, including increased deductions, simplified tax filing, and revised tax slabs. These measures are designed to provide financial relief, promote savings, and streamline compliance for salaried individuals.
