Livemint spoke to income tax experts to understand the expectations with regards to deductions, and taxation under the new and old tax regime.

“There's a push for equity in deductions within the new tax regime. While NPS scheme investments currently enjoy deductions, there's a strong expectation for similar benefits for premiums paid toward medical insurance policies or specified medical expenditures," Said Abhishek Soni, CEO of Tax2win.

Old income tax regime: Expectations from Budget 2024

Archit Gupta, CEO, of Clear shared what he hopes from Budget 2024 concerning the old tax regime

- Increase the deduction limit under Section 80D for medical insurance premiums from ₹25,000 to ₹50,000 for individuals

-Increase the deduction limit under Section 80D for medical insurance premiums from ₹50,000 to ₹75,000 for senior citizens, reflecting rising healthcare costs.

- Simplification of capital gains tax regime by bringing parity between various asset classes.

New income tax regime: Expectations from Budget 2024

Archit Gupta, CEO, of Clear shared what he hopes from Budget 2024 concerning the new tax regime

- Extend Section 80D deduction for medical insurance premiums under the new regime, ensuring equal access to healthcare tax benefits.

- Reintroduce Section 80CCG with attractive deductions for investments in diversified mutual funds or index funds, incentivizing retail participation in the stock market and promoting long-term wealth creation.

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Additional Measures

“Increase the deduction limit for interest repayment on home loans for both residential and commercial properties purchased for primary residence or business purposes, considering the current market conditions and promoting housing affordability," said Archit Gupta.

Experts foresee the inclusion of these deductions to ensure a fairer and more comprehensive system for taxpayers.