Union Budget 2024: What salaried taxpayers expect under the new tax regime

Budget 2024 is likely to make announcements in favour of salaried individuals.

As Nirmala Sitharaman gears up for the Union Budget 2024-25 to be tabled later this month, salaried individuals seem to be awaiting a host of goodies.

Sitharaman will be the first finance minister of India to present her seventh consecutive budget, surpassing former prime minister Morarji Desai's record six presentations in a row.

The budget will be tabled in the Monsoon Session of Parliament which begins on July 22 and will continue until August 9. Sitharaman has chaired several pre-budget consultations with industry leaders and finance ministers of different states.

Let us take a look at the wish list of salaried taxpayers for the Union Budget 2024-25.

Higher deduction under Sec 80C 

Under Section 80C, a taxpayer can claim deductions for investments and expenses of up to Rs 1.5 lakh per financial year to reduce tax liability. As per experts, it is expected that the limit for Section 80C will be raised to Rs 2 lakh from Rs 1.5 lakh. Revising the limit will be a relief for taxpayers.

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Higher standard deduction limit

The finance ministry plans to raise the standard deduction limit on incomes for taxpayers under the new regime, while leaving the older, exemption-filled regime unchanged, the Times of India reported.

"There's a long-standing demand for an increase in the amount of standard deduction for salaried individuals and some increase in the rebate amount," Ritika Nayyar, partner at Singhania & Co, told India Today.

In the 2023 Budget, the finance minister introduced a standard deduction of Rs 50,000 for salaried taxpayers and pensioners under the new regime, which became the default unless opted out.

Higher deduction on housing loans

An increase in cap of housing loan deduction is expected. Under Section 24(b) for deduction on interest on home loan of Rs 2 lakh is expected to be raised to Rs 3 lakh.

Wider tax breaks

Taxpayers would also like key tax breaks such as the HRA (house rent allowance) exemption, home loan interest deduction and health insurance premium deduction to be included under the new tax regime, too.