Union Budget 2024: Potential Revision of Tax Exemption in the Old Tax Regime, Indicates Report

A recent report suggests that the central government is considering revising tax exemptions, especially in the lower bracket for the Old Tax Regime, in the upcoming interim Budget 2024. 

Finance Minister Nirmala Sitharaman is expected to present the interim Union Budget on February 1, with potential additional tax waivers and exemptions for the Old Tax Regime's lowest level, according to sources cited by Business Standard.

The expected changes may include provisions benefiting women farmers and possible adjustments to income tax exemption rates, approaching Ôé╣7 lakh, as per the report. However, it is predicted that these new measures, combined with efforts to enhance direct taxes, will not adversely impact the government's fiscal deficits.

While no specific announcements have been made by the government yet, Finance Minister Nirmala Sitharaman is set to present the interim budget next month. The Centre has clarified that there won't be any spectacular announcements on February 1, as the budget will only serve as a vote-on-account.

The full Union Budget 2024 is scheduled for presentation in July, following the declaration of Lok Sabha election results and the establishment of the new government cabinet.

What to Anticipate From Interim Budget 2024:

Finance Minister Sitharaman has clarified that no major tax announcements or policy changes will be introduced in the Union Budget 2024 on February 1. This budget serves as an interim measure for the first quarter of the new financial year.

The finance minister stated It is a fact that the February 1, 2024, Budget will be just a vote on account as we will be in election mode and the Budget will simply cover expenditures, with no spectacular announcements during that time.

The interim budget is expected to encompass the Economic Survey, forecasts for the upcoming financial year, and a vote-on-account in Parliament for immediate expenses such as government employee salaries or funding ongoing projects.

Also Read: Budget 2024: Expectations for Interim Budget 2024 include a potential Rs 50000 Hike in Tax Exemption Limits by Government