Budget 2024: FM may raise Standard Deduction under New Tax Regime, say reports

The finance ministry is planning to increase the standard deduction limit for taxpayers under the new tax regime, while the older, exemption-filled regime will remain unchanged, according to the reports by Times of India.

The report further adds that the Finance Minister Nirmala Sitharaman has started public consultations on the budget, although most discussions are currently within the finance ministry.

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These internal assessments will be reviewed with other government branches and the Prime Minister's Office before final decisions.

In the 2023 Budget, the finance minister introduced a standard deduction of 50,000 rupees for salaried taxpayers and pensioners under the new regime, which became the default unless opted out.

Additionally, a rebate under Section 87A was increased for taxable incomes up to 7 lakh rupees, eliminating taxes for these earners, and the highest surcharge under the new regime was removed.