Union Budget 2024: No Anticipated Rise in Income Tax Rebate, Says Finance Ministry Official

As the Union Budget 2024 approaches, a senior finance ministry official has quashed speculations of an increase in income tax rebate for the upcoming financial year. With the interim budget set to be presented on February 1, the official clarified that there is no proposal to raise the current tax rebate of ₹7 lakh to ₹7.5 lakh.

This announcement comes less than a month ahead of the interim budget presentation. Earlier, there were widespread speculations suggesting that the Finance Ministry might include a proposal to increase the personal income tax rebate. However, the official statement has dismissed these speculations, providing clarity on the government's stance.

It's worth noting that the impending Lok Sabha elections, scheduled for April-May 2024, will result in the budget being presented in an interim capacity. This means that the budget will primarily focus on maintaining continuity and stability, refraining from introducing major policies or rules that could significantly impact the financial landscape.

While no hike in the income tax rebate is anticipated, the finance ministry official did mention the possibility of including a waiver of tax collected at source (TCS) on individual overseas credit and debit card expenditures in the interim budget, up to ₹7 lakh per year. This move aims to address specific concerns and provide relief to individuals engaged in overseas transactions.

Additionally, the official hinted that an amendment to the Income Tax Act could be part of the Finance Bill 2024 during the interim budget presentation. However, he emphasized that no major tax-related announcements are likely to be unveiled during this interim phase.

The interim budget of 2024, scheduled for presentation on February 1, will take the form of a vote-on-account. This provision allows an outgoing government to secure funding until a new government is formed and a comprehensive budget for the year is approved. Finance Minister Nirmala Sitharaman is expected to present the budget for the first three months of the financial year during the interim budget, with a more consolidated budget to follow for the remaining three quarters of FY2024-2025.

As stakeholders eagerly await the details of the budget, the government's stance on income tax rebates provides insight into the fiscal direction for the upcoming financial year.