SIMRAN RAJPAL
Since this year is election year and the government is in charge, the budget is vital. The focus is on Finance Minister Nirmala Sitharaman and how the NDA government intends to strike a balance between political appeal and fiscal objectives.
It is anticipated that in 2024, this cap will rise to INR 1,00,000. Rahul Charkha, a partner at Economic Laws Practice, stated that since standard deduction was included in the new tax system last year, the demand has grown.
For many budgets, the taxpayers have therefore been eagerly awaiting an increase in this cap. Given that the cost of living, retail inflation, and other factors have increased at a rate that is significantly higher than the increase in the Section 80C limit.
The Section 80D ceiling ought to be raised for individuals from Rs 25,000 to Rs 50,000, and for senior persons from Rs 50,000 to at least Rs 75,000.
The government ought to reconsider these caps in light of rising interest rates, real estate values, and philanthropic giving, in addition to inflation, according to Charkha.
The tax bands under the new tax structure were very slightly changed by the Union Budget 2023. Since the new tax system mainly benefited a certain subset of taxpayers, it has not yet garnered the anticipated praise.