Indore (Madhya Pradesh): The anticipation for Interim Budget of 2024, set to be unveiled by Finance Minister Nirmala Sitharaman on Thursday, February 1 is palpable. This year's budget carries heightened significance as it coincides with an election year, placing considerable weight on government's fiscal decisions. Among myriad expectations, tax proposals feature prominently on the wishlist.
Firstly, there's a call for a substantial increase in Standard Deduction, which has remained stagnant since its last revision in 2019. Many anticipate a hike to Rs 100k to align with current economic realities. Additionally, stakeholders are advocating for an expansion of benefits under Section 80C, citing the disparity between rising living costs and the current limit. Suggestions include raising the cap to Rs 3 lakh to better accommodate taxpayers.
On the healthcare front, demands for revisions to Section 80D are fervent. Proposed adjustments aim to enhance deductions for medical insurance premiums, especially for senior citizens, reflecting the escalating costs of healthcare. Further, there's a plea to index the basic income tax exemption to inflation, ensuring that tax thresholds remain relevant amid economic fluctuations. Addressing the taxation of gifts, there's a proposal to raise the tax-free limit from Rs 50k to Rs 100k a move aimed at modernising existing regulations.
Lastly, the healthcare industry seeks a reduction in GST rate on health insurance from 18 per cent to alleviate financial burden and broaden access to healthcare services.
