The Budget 2024 is a highly anticipated event, especially for salaried employees in the context of personal finance. As the economy aims to reach a 5 trillion-dollar mark, there are several expectations and speculations regarding the changes and reforms that may be introduced. This article delves into these expectations, analyzing their potential impact on the financial wellbeing of salaried individuals.

The stock market is a barometer of the economy, and any budget-related announcements have a direct impact on market sentiment. Investors are anticipating reforms that would boost market confidence, such as measures to increase foreign direct investment (FDI) and steps to simplify the process for Initial Public Offerings (IPOs). Furthermore, clarity on the Securities Transaction Tax (STT) and the Long-Term

Capital Gains (LTCG) tax

In Budget 2024, analysts anticipate significant reforms, notably the removal or reduction of Security Transaction Tax (STT). Since 2004, STT has impacted securities transactions, yet its reduction is expected to stimulate market growth and participation, balancing government revenue with financial sector vitality in India’s evolving economy.

Relief on LTCG front:

Budget 2024 in India is eyed for potential long-term capital gains (LTCG) tax relief. Analysts suggest this could boost stock market investments. Currently, a 10% tax is levied on annual profits exceeding Rs 1 lakh for holdings over a year, and 15% for shorter durations. With rising GST collections, there’s renewed hope for LTCG tax reforms, possibly enhancing market participation and investor enthusiasm.

Relief from double taxation on dividend:

In Budget 2024, India anticipates reform to alleviate double taxation on dividends, addressing concerns of shareholders who face tax on dividends already taxed as company profits. Such a move would not only streamline tax protocols but also boost investor confidence, fostering a more equitable and growth-oriented economic environment.

Income Threshold and Tax Rate Changes: One of the main expectations is to increase the income threshold for the highest tax rate from Rs 10 lakh to Rs 20 lakh and reduce the tax rate from 30% to 25%. These changes could benefit middle-class taxpayers and stimulate consumption.

Work-From-Home Allowances:

Given the shift to remote working, there’s a possibility that Budget 2024 might introduce specific deductions or allowances for expenses incurred while working from home, such as internet charges, electricity, and ergonomic furniture. This would be a welcome move for the large number of employees who continue to work from home.

GST and Indirect Taxation:

The GST has been a transformative tax reform in India, and any changes in this area are closely watched. There could be an expansion in the GST net, including items that are currently exempt, or a simplification of the GST slabs to make compliance easier. Small and medium enterprises are hoping for measures that would reduce compliance burdens and dispute resolution mechanisms.

Housing Loan & HRA Benefits:

Many salaried individuals invest in real estate and expect reforms in housing loan benefits. An increase in the deduction limit on home loan interest under Section 24(b) from the current INR 2 lakh would be welcomed. Similarly, enhancements in House Rent Allowance (HRA) deductions could alleviate the burden of high rents in metropolitan areas.

Education and Healthcare:

Incentives in education loans and healthcare expenses are also sought after. With the rising cost of education and healthcare, tax deductions on education loans and medical insurance premiums could be a significant relief.

Investment-Linked Deductions:

“Budget 2024 brings hope for salaried individuals, anticipating enhancements in tax exemptions. Key expectations include increased House Rent Allowance (HRA) exemptions and health insurance premium deductions under the new regime. Additionally, there’s a strong prospect for raised limits in Section 80C and 80D deductions, promising significant financial relief.”

Inflation and Cost of Living:

Finally, the budget could address:

Measures to Curb Inflation: Policies that help in controlling inflation, thereby impacting the cost of living. Subsidies and Price Controls: On essential commodities to ease the financial burden on the middle and lower-income groups.

Boosting Consumer Spending:

Incentives for Electric Vehicles: With the push towards electric vehicles (EVs), additional tax incentives or rebates for EV buyers can be anticipated, fostering eco-friendly transportation.

Relief on Consumer Goods: Reduction in GST or custom duties on certain consumer goods is expected to increase purchasing power and boost consumer spending.


Budget 2024 is poised to be a crucial event for salaried employees, as it has the potential to significantly impact their Asset allocation and savings. While the expectations are high, it is essential to wait for the official announcements to understand the actual impact. Salaried employees should plan their finances accordingly, keeping in mind the possible changes and ensuring they are well-prepared to adapt to the new financial landscape post-Budget 2024.

(Kirang Gandhi is a personal financial mentor. The views expressed are personal)

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