New Delhi. The first general budget of the third term of the Modi government is going to be presented on 23 July 2024 (Tuesday). Every sector has many expectations from this budget.

The general public has many expectations regarding income tax. This time everyone's focus will remain on the new tax regime. The general public is expecting some relief regarding tax. Let us know what relief the general public is expecting regarding tax.  

Standard Deduction

In this budget , it is expected that the government can increase the standard deduction. Currently, the standard deduction is Rs 50,000 which is expected to be increased to Rs 1 lakh.

The standard deduction was last increased from Rs 40,000 to Rs 50,000 in the year 2019. There has been no increase in it for the last 5 years, while inflation has increased a lot in the meantime.

Health Policy

The common man hopes that he should get relief in the budget. To provide relief to the common man, the government will have to control inflation and rising healthcare costs. For healthcare, the government will have to increase the tax benefit available under section 80D of Income Tax.

Currently, senior citizens get a tax exemption of Rs 50,000 on health policy premium, which is expected to be increased to Rs 1 lakh.

At the same time, for those below 60 years of age, the tax exemption should be increased to Rs 50,000, which is currently Rs 25,000.

The Old Regime

In Budget 2023, the new tax regime was made the default tax regime. Despite this, according to a survey conducted last year, 80 percent of taxpayers are still using the old regime. Since the number of taxpayers with the old regime is high, it is expected that there may be an announcement regarding the old tax regime in the budget.

The general public expects the government to change the old tax slab and reduce the tax burden on taxpayers.  

 Term Capital Gains Tax

Senior citizens are hoping that this budget will provide relief in capital gains tax for them. Currently, long term capital gains tax is levied on income up to Rs 1 lakh from stocks and mutual funds. But, senior citizens are hoping that in this budget it should be increased from Rs 1 lakh to Rs 2 lakh.