Even if there is no relief in income tax, the Finance Minister can give this relief to the taxpayers in Budget 2024

The Kalamkar News, Budget 2024: Finance Minister Nirmala Sitharaman is going to present the budget on 1 February. There is little hope of any major relief in this budget which will be presented before the Lok Sabha elections. Expectations of change in income tax slab or tax exemption are also very low, although tax filing can be made easier. 

In the last two-three years, the government has made a lot of efforts to make tax filing easier. Efforts have been made to simplify tax filing through free filing returns, AIS, TIS and 26AS forms. It is believed that in the interim budget, the Finance Minister's focus will be on making tax filing easier rather than tax savings and tax exemptions. 

Requests have been sent to the Finance Ministry regarding this from different forums. People are hopeful that the Finance Minister can make taxes easier, tax compliance easier and by reviewing some selected reliefs under Chapter VIA and provisions related to TDS. 

Emphasis on simplifying taxes

The new tax regime is easier and simpler than the old tax regime. At the same time, most of the tax paying people hope that the Finance Minister should make some such announcements in the interim budget, so that the regular tax regime can also be made financially easy and provide tax relief. 

The new tax regime should be made attractive by expanding the tax slabs and reducing tax rates, so that more taxpayers can join this regime.  

The possibility of exemption in income tax is less, but in view of the Lok Sabha elections, it is expected that the government may announce some relief for the taxpayers to popularize the new income tax regime. 

Due to non-availability of tax exemption, standard deduction, tax exemption under 80C, 80D, tax payers are hesitant in choosing this regime. Less than 10 percent of the total tax payers have chosen the new tax regime. In this, people do not get any tax exemption on savings or investment.  

To popularize this tax regime, last year, while giving relief to the taxpayers, income up to Rs 7 lakh was kept out of the tax slab. The Finance Minister tried to connect people with the new tax regime. It has been recommended to simplify and rationalize the tax on capital gains.

At present there are many problems in it, which makes tax filing difficult for a common taxpayer. Apart from this, there is a need for review of Chapter VIA. Considering the medical cost, there is a need to increase the deduction under section 80D. By doing this the financial burden on taxpayers will be reduced.