Expectations of Salaried Taxpayers from Budget 2024

As our Finance Minister is all set for Interim Budget 2024 on 1st February 2024, here are the expectations of Salaried Taxpayers from Budget 2024.

Increase in Limit for Deduction u/s 80C:

It is a Long pending demand of Salaried Taxpayers, that Limit for Deduction u/s 80C should be enhanced from Rs. 1.5 Lakhs to Rs. Rs. 2.5 Lakhs. Same will be a great relief if it happens.

Allowing Deductions of House Rent Allowance (HRA) and interest on Home Loan in New Personal Taxation Regime:

The government should make appropriate amendments in section 115BAC to allow HRA deduction u/s 10(13A) and interest paid u/s 24(b) for home loans taken in respect of self-occupied property in the new personal taxation regime.

Enhance the Standard Deduction Limit:

Yes, it is also an expectation that the Standard Deduction Limit should be enhanced to Rs. 100,000 from Rs. 50,000.

ITR Due Date Extension for Non-Audit Cases:

Currently, the due date to file an Income Tax Return (ITR) is 31st July of the Next Financial Year. The Due Date to file a TDS Return for Salary is 31st May which means that the Salaried Taxpayer get their TDS Certificate by 15th June. The salaried Taxpayers have approximately 1.5 Months Time to file their ITR, which is very less and therefore it is a humble request that their due date should be extended to 31st August instead.

More Cities should be included in 50% HRA List:

Currently, 50% HRA deduction is available only for metropolitan cities, i.e., Delhi, Mumbai, Chennai, and Kolkata. However, cities like Bengaluru, Hyderabad, Pune, Gurgaon, Ahmedabad, etc. have now gained importance and they should be added to the metro cities list for the HRA exemption of 50%.

Increase in Deduction for Saving Interest:

Deduction of Saving Interest u/s 80TTA for Non-Senior Citizens should be enhanced from Rs. 10,000 to Rs. 50,000 and u/s 80TTB for Senior Citizens should be enhanced from Rs. 50,000 to Rs. 100,000.

Increase in Limit for Deduction of Loss U/H House Property

Currently, the limit for deduction of loss under the head house property is Rs. 200,000. The same should be enhanced to Rs. 300,000 in line with increasing inflation.