ClearTax's founder and CEO, Archit Gupta, told Mint Live that the upcoming Budget will offer a chance to resolve outstanding issues and lay the groundwork for future economic expansion.
Taxpayers nationwide anxiously await news on income tax benefits as Union Finance Minister Nirmala Sitharaman prepares to unveil Budget 2024 on February 1. The significant tax benefit announcements are anticipated to be postponed until after the 2024 Lok Sabha elections.
Regarding budget expectations, ClearTax's founder and CEO, Archit Gupta, told Mint Live that the upcoming Budget will offer a chance to resolve outstanding issues and lay the groundwork for future economic expansion. He said this budget would most likely "prioritize fiscal discipline over populist measures."
Examine the potential tax benefits of Budget 2024
80D Deduction Limit
In light of growing healthcare costs, Archit Gupta suggested raising the Section 80D deduction limit for medical insurance premiums from Rs 25,000 to Rs 50,000 for individuals and Rs 50,000 to Rs 75,000 for senior citizens. In addition, he said that bringing the Section 80D benefits into line with the new tax structure would encourage fair access to healthcare.
Bengaluru as metro city for HRA exemption
Despite Bengaluru's designation as a metropolis under the Indian Constitution, Archit Gupta stated that the city is still regarded as non-metro for income tax purposes. As opposed to the 50% available in other major cities, he claimed that this limits HRA deductions to 40% for residents.
Simplification of capital gains taxation
He claims that the current complicated capital gains tax regime is complex for investors, with numerous factors such as asset classes, holding periods, tax rates, and residency status. He continued that the central bank should simplify indexation rules, harmonize the tax treatment of listed and unlisted securities, and expedite the classification of debt and equity instruments.
TDS compliance for home buyers
The current TDS threshold limit on property purchases is Rs 50 lakh. If the property's value exceeds this amount, the buyer is required to deduct TDS at a rate of 1% of the total consideration amount. This rule applies to both commercial and residential properties.
According to Gupta of ClearTax, the Interim Budget can provide some clarity on this clause for NRI sellers. "The taxation process is straightforward for resident sellers (using Form 26QB), but it is more complex for Non-Resident Indian (NRI) sellers," Gupta said in a statement.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Budget 2024: Four income tax benefits you could expect from FM Nirmala Sitaraman")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}