Budget 2024: Government can make special announcement for these employees, will increase tax exemption limit on leave encashment

There may be special announcements for salary class

The budget, to be presented on February 1, 2024, is likely to be presented by the government before the elections. People are going to remember the important decisions or changes made in it. In such a situation, the government can focus on capitalizing on its vote bank, especially the salary class and middle class. The biggest concern of the salaried class is to save tax and they want to save as much money as possible. This time it remains to be seen what special announcements the government can make for taxpayers in the budget.

Tax exemption limit for leave encashment may increase

The Finance Minister had increased the limit of tax exemption on leave encashment on retirement of non-government employees from Rs 3 lakh to Rs 25 lakh. In the year 2002, the tax exemption limit of Rs 3 lakh was fixed. Then there was the government of Prime Minister Atal Bihari Vajpayee. Now it has to be seen whether in the budget the government will increase the limit of tax exemption on leave encashment at the time of retirement for private sector employees from Rs 25 lakh to Rs 30 lakh. Private sector employees are expecting this to increase.

Government will provide relief to employed people in the budget

A new government will be formed at the Center after the Lok Sabha elections in April-May. She will present the full budget for the financial year 2024-25 (Union Budget 2024). Whether the Government of India will provide relief to employed people in the budget or not, it will be known on 1 February 2024. The current government of Prime Minister Narendra Modi will present its final budget on 1 February 2024. The question is whether the government will make big announcements for the private sector salary class in the interim budget to be presented on 1 February 2024.