Union Budget 2024: On February 1, 2024, the Modi government is going to present the interim budget in which the first four months of the next financial year 2024-25 will be from April to July after the formation of the new government. Till the passage, approval will be taken from the Parliament to meet the government expenditure, which is also called vote on account. Lok Sabha elections will be held from April to May. And a new government is expected to be formed in the country by the last week of May.
19 interim budgets presented after independence
Since independence, a total of 91 budgets have been presented in the country, out of which 14 were interim budgets. Lok Sabha elections for the year 2024 will be held from April to May. And a new government is expected to be formed in the country by the last week of May. The electoral code of conduct will also come into force only after the announcement of the dates of Lok Sabha elections in March 2024. Despite this, the ruling parties have not been announcing major decisions in the interim budget. There has been no change in the income tax structure. However, the interim budgets presented before the 2009 and 2019 Lok Sabha elections are exceptions to this. In 2019, then Finance Minister Piyush Goyal and in 2009 then Finance Minister Pranab Mukherjee had taken major decisions related to tax.
Major decisions of interim budget 2019
In the interim budget of 2019, those with taxable income up to Rs 5 lakh were exempted from paying tax. On the slab of Rs 2.50 to Rs 5 lakh, tax of Rs 12,500 was being levied at the rate of 5 per cent, on which the government gave full rebate. Standard deduction was increased from Rs 40,000 to Rs 50,000. It was decided not to charge income tax on the notional rent of the second self-occupied house. Bank – The interest limit for collecting TDS on interest received from post office deposits was increased from Rs 10,000 to Rs 40,000.
PM Kisan Samman Yojana announced in 2019
In the interim budget of 2019, Modi government opened the treasury for farmers. Pradhan Mantri Kisan Samman Yojana was announced in which it was proposed to give Rs 6,000 annually to farmers in three installments. For election benefits, the government transferred the amount of Rs 4000 in two installments to the bank accounts of the farmers even before the announcement of the election dates. Bharatiya Janata Party also got electoral benefit from this announcement of the government.
Changes in tax slabs in 2009
On 17 February 2014, during the tenure of the UPA government, the then Finance Minister P Chidambaram presented the interim budget. And no major announcements related to tax were made in this budget. However, before the Lok Sabha elections in 2009, when Finance Minister Pranab Mukherjee presented the interim budget, he made major changes in the income tax slabs. Income tax exemption limit was increased from Rs 1.1 lakh to Rs 1.5 lakh. The income tax exemption limit for women below 65 years of age was increased from Rs 1.45 lakh to Rs 1.80 lakh. Whereas for senior citizens above 65 years of age, the exemption limit was increased from Rs 1.95 lakh to Rs 2.25 lakh. In the year 2004 Before the Lok Sabha elections, the then Finance Minister Jaswant Singh had presented an interim budget and there was no change in the tax slab in this budget.
Will there be relief in 2024?
Out of the interim budgets presented in the last two decades, big relief was given to taxpayers in two budgets. The question arises whether the Modi government will give any gift in the interim budget in 2024. However, Finance Minister Sitharaman has already said that big announcements will have to wait for the full budget.
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