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Budget 2024: Standard deduction should be doubled, who made this suggestion?

Sagar Patel

By Sagar Patel

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Although the date of presentation of the 2024 Budget is not clear, the government has begun to receive suggestions from different sectors. This time the suggestion comes from the tax and advisory company EY. If the government accepts this advice, taxpayers can save a lot on taxes. EY has also suggested the government double the standard deduction and increase the tax exemption limit. Shall we also tell you what advice EY has given regarding the budget?

What advice did EY give?

Tax and advisory firm EY has advised the government to double the standard deduction to Rs 1 lakh or increase the basic tax exemption limit to Rs 3.5 lakh under the new concessional tax regime in the upcoming Budget. Highlighting the priorities for tax reforms in the upcoming Budget, EY has said that the government should prioritise rationalising the tax structure, improving the policy framework to promote economic growth and fostering an enabling environment for necessary investment and growth.

Tips on corporate tax

EY suggested stabilizing corporate tax rates, streamlining TDS provisions and simplifying dispute resolution. The company said the favorable tax regime should continue without exemptions/deductions on the personal tax front. Listing out the policy priorities before the new government, EY said the standard deduction under the concessional tax regime could be increased from the current Rs 50,000 to Rs 1 lakh or the tax exemption limit could be increased from Rs 3 lakh to make it more attractive. can be increased to Rs 3.5 lakh.

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What is the current standard deduction?

Under the current tax system, taxpayers can choose between the old regime and lower rates and the new concessional regime. While various exemptions and deductions were provided for in the old system, a standard deduction of Rs 50,000 is provided for in the new tax system, but no exemptions are provided for. EY said the government has taken several welcome steps to improve technology and data-driven tax compliance processes. These include pre-filled returns, annual information returns, ease of tax payments, faster processing of returns and refunds, etc. This has improved the situation of voluntary tax compliance.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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