Union Finance Minister Nirmala Sitharaman will present the interim budget 2024 of the Modi government on February 1. It is being said that tax exemption can be given under the old tax regime.
Union Finance Minister Nirmala Sitharaman will present the interim budget of the Modi government on 1 February 2024 (Union Budget 2024). It is expected that there will be no special announcement in this budget, but a report has said that the government can give tax exemption under the old tax regime. This exemption may be at the minimum level permissible under the old tax system.
According to the report of Business Standard, a senior official said that in the upcoming budget (Union Budget 2024), some additional tax exemption can be given only at the minimum level valid for the old income tax regime. Among the new measures, expansion of income tax exemption rates to around Rs 7 lakh can also be announced for women and farmers.
What has the Finance Minister said about the budget
The new measures along with the announcement of reforms in the direct tax system will not have any impact on the government’s fiscal deficit figures. However, it is worth noting that the Finance Minister has already said that there cannot be any special announcement of any kind in the interim budget in February. The full budget will be presented in July after the Loksabha elections. For this reason there is little hope of any significant change.
Changes have been made regarding tax
In the last three-four years, the Finance Minister has introduced many rules related to income tax for taxpayers. This includes tax exemption up to Rs 7 lakh and other rules under the new tax regime. A new scheme for women was also introduced in the last budget. Apart from this, announcement has also been made for farmers.
What changed in the new tax system
In Budget FY24, the Finance Minister made major changes and introduced the new tax regime as the new default option. He added incentives to support the new tax regime, including total tax exemption of up to Rs 7 lakh, which was Rs 5 lakh under the old tax regime.
