Budget 2024: Employees planning for retirement have these 3 special expectations from this year's budget..
The wait for the budget is going to end soon. This time the Union Finance Minister Nirmala Sitharaman will present the first budget of the Modi 3.0 government on 23 July 2024 at 11 am. Experts hope that there will be many big announcements for those planning for retirement in the Union Budget 2024-25. The relief that is expected from the Finance Minister this time includes increasing the limit of tax deduction under Section 80C of Income Tax to ₹ 2.5 lakh, and the announcement of the creation of a sub-category for tax exemption on retirement schemes like NPS and ELSS. If this happens, then crores of people planning for retirement in the country will get big relief. Demand to increase exemption limit under Income Tax Section 80C
Recently, taxpayers planning for retirement have demanded that this time in the budget, the limit of tax deduction under Section 80C should be increased from the current ₹ 1.5 lakh to ₹ 2.5 lakh. Also, a separate sub-category of ₹ 1 lakh should be created for retirement schemes like NPS and ELSS. The government should also launch the 'Senior Citizen Savings Scheme', which provides a 1% additional interest rate on all fixed deposits for people above 60 years of age.
NPS should be made more flexible
Let us tell you that there is a demand to increase the tax-free withdrawal limit for NPS from 60% to 80%. This will make this investment scheme more attractive for investors. There is also a demand to make inflation-indexed bonds for retirement savings.
Special benefits to senior citizens
This time there is a need to bring section 80TTB in the budget, under which senior citizens are provided tax-free interest income of up to ₹ 1 lakh from retirement-focused savings schemes. This will potentially increase pension coverage in India. There is also a need to explore additional tax benefits for women investors in retirement products to address gender disparities in pension savings.
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