Will there be income tax relief in Budget 2024? What CII says

Income tax relief is likely in the upcoming Budget for taxpayers in the lowest slab owing to high level of inflation in the country, CII president Sanjiv Puri said. The industry body head suggested creation of an institutional platform for consensus building between the Centre and states to successfully carry out all reforms in the country.

Talking to new agency PTI, he said, “What we are suggesting is that the process of simplification should continue. There are certain suggestions relating to capital gains, which are different for different instruments. Can it be rationalised?”

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He added, “Over a period of time as far as customs is concerned, we should move to a three-tier structure, primary at the lowest level, intermediates in between and then the finished goods and all over a period of time should be moderate rates with some exclusions, as deemed appropriate.”

As per the old regime, income tax exemption limit is applicable on income up to ₹2.5 lakh for individuals while under the new regime, exemption limit is on income up to ₹3 lakh.

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On what to expect from the Budget, he said, “Broadly, I would say at this point of time it is public capex, adherence to fiscal glidepath, roadmap for investment in the social infrastructure, green fund and greater investment in the rural sector. These are the broad principles.”

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This comes as India's wholesale price index-based inflation rose for the third straight month to 2.61% in May on a year-on-year basis against 1.26 percent a month ago as per data from the commerce ministry. RBI Governor Shaktikanta Das earlier said that the central bank may consider "further policy actions" only if headline inflation stays at 4%.