The interim budget of Government of India rolled out in February, 2024 by our Finance Minister Nirmala Sitharaman. That budget was called Interim because final budget is yet to be presented in July, 2024. In that previous half budget, concepts of Social Justice, ‘Garib Kalyan, Desk ka Kalyan’, ‘Annadata’, ‘Nari Shakti, ‘PM Awas Yojna’, ‘Rooftop Solarization’ and ‘Ayushman Bharat’ amongst others were focused on.
Now, let us see what could be the cornerstones of final budget.
- The current tax slabs for individuals are restricted to Rs. 5 lacs p.a. (with deductions) and Rs. 7 lacs p.a. (without deductions) as per old and new tax regimes respectively. Considering the high rate of inflation and increase in average per capita income levels in last two years, the income tax slab may rise to Rs. 10 lacs (without deductions). If this happens, then it will be a big tax relief to lower middle class families whose average yearly income has actually increase to Rs. 10 lacs. However, it would be even better if few deductions under Section 80C & 80D would also be allowed. It will ensure that income earners focus equally on social security schemes.
- The amount of deductions allowed u/s 80C may also rise from Rs.1.5 lacs to Rs. 2.5 lacs if the tax slabs would rise. The current limit was fixed way back when this amount of tax free investment in a year was considered big. But now, with huge advancement in technology, it is not.
- As the government purely focuses on ‘Viksit Bharat’ i.e. India becoming developed economy by 2047, so big investments are expected in infrastructure development, education facilities, skills based development, new schemes for the benefit of entrepreneurs and healthcare. MSME enterprises can expect huge boost.
- Simplification of GST regime and its procedural filing process can be seen. Changing GST rates have created a lot of confusion so Indirect Taxation System may see huge overhaul.
It is not only government’s duty to make a good budget, but also a citizen’s duty to be aware and take full advantage of all government schemes. To know more about such schemes, you can visit other articles in this series.
