Budget 2024: Could there be more improvements for the new income tax regime?

As the government prepares for the interim budget ahead of general elections, salaried individuals are optimistic about potential improvements in the tax landscape.

Abhishek Soni, CEO and Co-founder of Tax2win told livemint that he anticipates a rise in the basic exemption limit for both old and new tax regimes. Individuals are also seeking enhancements in the standard deduction limit, HRA exemption, and health insurance premium deductions under the new system.

Not only this, Kurian Jose, CEO of Tata Pension Management also recommends a hike in the limit of the National Pension Scheme (NPS) to Rs 1,00,000 for both tax regimes. This move could incentivise individuals to consider the new tax system.

Introduced in the Union Budget 2020-21, the new tax system became the default option from April 1, 2023, providing taxpayers with an alternative to the old regime. Finance Minister Nirmala Sitharaman, in the previous year, made adjustments such as reducing the surcharge for higher-income individuals and introducing a standard deduction of Rs 50,000.