Special 
Various media reports indicated that the Centre plans to increase the income threshold before imposing any tax from ₹3 lakh to ₹5 lakh in the upcoming budget Finance Minister Nirmala Sitharaman is set to present the full budget for the current financial year on July 23. Expectations are running high as experts predict that Budget 2024 will aim to strike a balance by offering benefits to salaried employees, farmers, women, and the youth. The primary focus is likely to be on job creation and enhancing the rural economy. Additionally, significant announcements regarding infrastructure development, crucial for economic growth, are anticipated.
Given the rising healthcare costs, there is an expectation for an increase in the deduction limit for medical insurance premiums under Section 80D of the Income Tax Act of 1961.
Currently, salaried individuals can reduce their taxable income by ₹1.5 lakh annually under Section 80C. Archit Gupta, Founder and CEO of ClearTax, emphasized the need to revise this limit, which has stayed the same since 2014 despite rising inflation.
The standard deduction, introduced at ₹40,000 in the 2018 budget and raised to ₹50,000 in 2019, has remained unchanged since. Ashish Aggarwal, Director at Acube Ventures, noted that, "The current deduction of ₹50,000 could moderately increase to ₹60,000 or possibly ₹70,000, which salaried employees would welcome as it lowers their taxable income."
Tax experts are predicting several key adjustments to the income tax framework, including potential hikes in the standard deduction, relief in income tax rates, and increased exemptions under Section 80C
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