Budget 2024: Some modifications in personal tax quite possible, says Sujit Bangar of TaxBuddy

Deduction against school fees may be de-coupled from Section 80C and separate deduction may be offered for this purpose in the upcoming interim Budget 2024, says Sujit Bangar, Founder, Taxbuddy.com.

In an interview with  MintGenie, Bangar said that the interim Budget may not suggest any changes in tax rates, but major changes in personal taxation may take place.

Edited Excerpts:

      Q. This is the last Budget of the existing government. What are your expectations from the interim Budget?

This would be a vote on account. The full Budget will be presented by the new government after the results of the general elections are declared in May 2024. Therefore, expectations of some big bang changes can’t be there. However, modifications and alterations in personal taxation are quite possible.

    Q. Past interim Budgets have never announced any major tax reforms. Do you think things will be different this time?

The interim Budget presented in 2019, introduced a few major changes like the enhanced limit of standard deduction, income up to ₹5 lakh exempted from income tax, etc. Therefore, this year, the interim Budget may not suggest any changes in tax rates, but major changes in personal taxation can’t be denied.

    Q. Do you think the recent incidents of attempted ship hijacking and frequent tensions between countries will affect the budgetary allocations to various sectors this year? If yes, which sector would likely be most affected?

Since the advent of COVID-19 and then due to the Russia-Ukraine war, global shipping has seen an erratic pattern with a sharp increase in freight coupled with the unavailability of containers. Few sops to the shipping industry to address these issues can be a welcome move in this Budget.

    

    Q. India is witnessing a notable upswing in credit card usage, especially in travel financing. Given this trend, would you want the government to consider excluding international expenditures up to ₹7 lakh from the current 20 percent Tax Collected at Source (TCS) in the forthcoming interim Budget?

With increasing per capita income, aspirations of global travel by the neo-rich are increasing. The proposed TCS requirement would create hurdles to business travel along with tourism. Therefore, the government should reconsider it in this interim Budget.

   

     Q. Do you think it is high time that the government must increase the tax exemption limit under Section 80C to alleviate salaried people’s concerns?

Deduction against school fees may be de-coupled from Section 80C and separate deduction may be offered for this purpose. It shall further boost the spending on school education. Fees other than tuition fees may also be included in this deduction. The deduction available under Section 80D may be enhanced to ₹75,000/- from the existing ₹25,000/- to promote health insurance given rising health care costs.

    

    Q. What suggestions would you give to simplify the current tax filing process?

Every year many individuals receive their Form 16 very late. Many companies would be issuing Form 16 to their employees as late as July. Many taxpayers have issues concerning TDS done vis a vis tax regime to be followed. Many instances have been noticed where pre-fill is not fully updated with the latest data. These issues are creating certain difficulties for salaried taxpayers while filing ITRs.

    Individuals with professional/ freelancing income have witnessed similar issues                      regarding delays in getting from 16A. Given these hardships, the due date for filing ITR            should be extended by a month to 31st August.


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Source Link: https://www.livemint.com/money/personal-finance/budget-2024-expectations-some-modifications-in-income-tax-quite-possible-says-sujit-bangar-of-taxbuddy-section-80d/amp-11704889099349.html

Website Link: https://www.taxbuddy.com/

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