Budget 2024 | Middle-class taxpayers’ wishlist: Higher basic income exemption limit of Rs 5 lakh, standard deduction of Rs 1 lakh

After being denied tax sops in the interim Budget 2024 announced in February ahead of the general elections, individual, middle-class taxpayers are now pinning their hopes on the full-year Budget that will be presented on July 23.

Their wishlist includes lower tax rates, higher basic exemption limit as well as standard deduction. However, financial experts feel the government may announce a few tax tweaks but the benefits will be largely limited to the new, minimal exemptions tax regime.

Hike basic exemption threshold to Rs 5 lakh

The basic exemption limits – income thresholds below which no tax is payable – under the old as well as new tax regimes are Rs 2.5 lakh and Rs 3 lakh, respectively.  The expectation is that the limit under new tax regime will be raised to Rs 5 lakh.

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