![]() Considering inflation of 5-6% in the case of debt investments, the effective tax rate (post indexation) after 3 years or more may be lower than the current taxability of long-term gains on Equity (10%).It is requested that the LTCG on listed equity shares or units of equity-oriented fund schemes be exempted from Capital Gains Tax if the equity shares / Mutual Funds Units are held for at least 3 years, while other tax provisions under the said section may be otherwise continued as it is.We have listed down key tax recommendations only. Even the Association of Mutual Funds in India (AMFI) has proposed specific tax-related changes to be made in the FY24 budget. We also expect some changes to standard deduction as well. They will benefit from lower tax payments yearly and will increase income for everyone. 150,000 is increased, individual taxpayers can save more. For example, the current limit for tax saving under section 80C of the income tax is Rs. ![]() There are expectations around increasing the limit of various deductions for individual investors. ![]() Hence, the highest tax bracket is expected to be reduced to boost the economy’s consumption and provide more purchasing power in the hands of individuals.Rates for the highest brackets for individuals in neighbouring countries are Hong Kong – 17%, Singapore – 22%, and Malaysia – 30%. Tax rates have stayed the same since 2017-2018 (Except for the New tax regime introduced in 2020-2021). The highest tax for an individual earning Rs. Expectations to mitigate hardship to retail taxpayers:Īs per income tax provisions, an individual pays tax based on slab rates as per their income. It is essential to note that this budget will lay the foundation for the 2024 general elections. While all of us are curious to know the changes that may happen in the FY24 budget & though there are plenty of tax expectations that the Budget can address, we give here our expectations, which have been placed forth keeping in mind the practical side of fiscal space that will be available. The Union budget is right around the corner. ![]()
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