Key Points
Budget Expectations: As Finance Minister Nirmala Sitharaman is set to present the upcoming Union Budget on July 23 in Parliament, standard deduction to Rs 1 lakh and increasing tax break among others are some of the expectations for the comman man that consultancy firm KPMG expects...
Keeping in mind the increase in personal expenditure it is popularly expected to enhance the standard deduction to Rs 1 lakh from the existing limit of Rs 50,000," said the firm in a note...
With the objective to have more net disposable income which can either be spent on consumer goods or channelised as savings, it is a popular expectation that the basic tax exemption limit under the default new tax regime be increased to Rs 5 lakh from Rs 3 lakh, it said.. Read More: Income tax cut in Union Budget 2024: Indias middle-class is asking for it but may not get it..
Even the period of holding for a capital asset to qualify as long-term (vis-a-vis short term) varies significantly e.g., for listed equity shares it is 12 months whereas for real estate it is 24 months and for debt instruments, it is 36 months, it said.. Read More: Union Budget 2024 may test Modi govts fiscal prudence as it attempts to fulfil Lok Sabha manifesto promises..
"While historically there may have been reasons for creating a complex structure in line with this government's stated objective of simplifying the tax system it may be worthwhile to provide a more uniform capital gains tax structure (both in terms of period of holding and rate of tax)," it said...
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