2024 Budget Tax Reforms
Budget 2024 Expectations: Addressing Income Tax and GST Concerns
As the 2024 General Elections loom, the upcoming Union Budget offers an opportunity to tackle persistent economic issues and pave the way for future growth. While significant announcements may be deferred, there is anticipation for measures addressing income tax and GST.
Income Tax Expectations:
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80D Deduction Limit: Proposal to increase the deduction limit under Section 80D for medical insurance premiums, aiming to raise it from ₹25,000 to ₹50,000 for individuals and from ₹50,000 to ₹75,000 for senior citizens. This adjustment reflects the escalating healthcare expenses and promotes inclusivity by extending benefits to taxpayers under the New Tax Regime.
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Ease TDS Compliance for Home Buyers: Simplification of the TDS (Tax Deducted at Source) compliance process for property purchases exceeding INR 50 lakh, particularly addressing complexities faced by Non-Resident Indian (NRI) sellers.
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Simplification of Capital Gains Taxation: Streamlining the capital gains tax regime to alleviate complexities for investors. This may involve clarifying tax treatment for various asset classes, unifying tax rules for listed and unlisted securities, and simplifying indexation provisions.
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HRA Exemption for Bengaluru: Advocacy for Bengaluru’s reclassification as a metro city for income tax purposes, ensuring parity in HRA (House Rent Allowance) deductions with other metro cities.
GST Expectations:
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Customs Law Compliance: While GST law amendments are primarily discussed in GST Council meetings, the budget may focus on enhancing Customs law compliance.
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Revised Annual GST Return Form: Introduction of a revised annual GST return form to rectify errors in the GSTR-9 form, especially for B2B transactions, aiming to reduce tax scrutiny triggered by filing inaccuracies.
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GST on Reverse Charge Mechanism: Proposal for a reverse charge-based mechanism to improve GST compliance. Large taxpayers could directly remit GST for purchases from non-compliant vendors, alleviating compliance burdens on small businesses and enhancing transaction efficiency for large enterprises.
