Nearly 8 crore Indians pay income tax, and this article will delve into their Union Budget priorities for FY2023-24. Here are eight key points on the Wishlist: 

Maximized Medical Insurance Under Section 80D 

Individuals and Hindu Undivided Families (HUFs) can claim a ₹25,000 deduction for health insurance premiums covering themselves, their spouse, and their children. However, the budget could raise this limit to ₹50,000. It can incentivize policyholders to secure higher coverage against costly hospital bills. Thus, promising peace of mind.

Boosted NPS Contribution with Section 80CCD (1B)

The newly added subsection 1B of Section 80 CCD provides an extra ₹50,000 deduction for individual taxpayers who contribute to the National Pension Scheme (NPS) Tier I accounts. This limit could be increased to ₹100,000, promoting more significant long-term savings.

Enhanced Savings Under Section 80C 

The popular Section 80C enables taxpayers to lower their taxable income through tax-saving investments, with the highest annual deduction being ₹1.5 lakhs. This limit could be raised to ₹2 lakhs encouraging higher long-term savings.

Raised Tax Slab 

Currently, individuals under 60 years old can claim a tax exemption of up to ₹2.5 lakhs. This limit could be increased to ₹5 lakhs.

New Long-Term Infrastructure Bond

The finance minister could create a 10-year bond for senior citizens above 60, offering tax-free annual interest payments similar to the RBI Floating Rate Savings Bonds 2020. This could provide additional funding for long-term infrastructure projects and have limited investments of up to ₹15 lakhs, like the Senior Citizen Savings Scheme.

Increased Tax Deduction with Section 24

The EMI interest paid for the year can be claimed as a ₹2 lakh deduction under Section 24. This limit could be raised to ₹3 lakhs.

Amplified Standard Deduction

Salaried individuals and pensioners can claim a standard deduction of ₹50,000 without any investment or expenses. This amount could be increased to ₹100,000.

Lowered Capital Gains Tax 

For debt funds, long-term capital gains are taxed at a 20% rate (for listed) after indexation benefits, with a tenure of 36 months. This tenure could be reduced to 24 months, and the tax rate could be reduced to 10% (for listed) after indexation benefits.

Let’s hope the finance minister considers these desires of respected taxpayers in the upcoming budget.

Let’s hope the finance minister listen the Respected Tax Payers.

Kunal Jain

Alpha Research Team