It's Budget Day today - will Modi 3.0 reduce tax burdens? Here's what to expect

It's Budget Day today as the Modi Sarkar 3.0 is all set to table the Budget 2024-25 in the Lok Sabha. Finance Minister Nirmala Sitharaman will be presenting her 7th consecutive Union Budget. What will be the key point of the Union Budget you ask? Tax relief is what people, especially the middle-class sector, are looking forward to.

The budget is expected to address key aspects of the new income tax regime. Anticipation is high for the potential rationalization of tax slabs, particularly for those with incomes between Rs 15-20 lakh. There is also speculation about increasing the exemption limit from Rs 3 lakh to Rs 5 lakh and raising the standard deduction from Rs 50,000 to Rs 1,00,000. These changes aim to make the new income tax regime more taxpayer-friendly.

Meanwhile, experts suggest that the budget is unlikely to focus solely on populism. Instead, it will likely balance populist measures with a strong economic growth strategy. Sitharaman is expected to implement a mix of policies that address immediate tax relief needs while laying out a comprehensive roadmap for sustainable economic development.

Another major focus could be revamping the production-linked incentive (PLI) scheme to include more employment-generating sectors. The government plans to tweak the scheme to encompass labor-intensive and MSME-linked enterprises. The total PLI incentive is projected to rise from Rs 2,002 crore in FY23 to Rs 14,167.1 crore in FY25. The government may also introduce PLI schemes for textiles, leather, footwear, toys, and other sectors to boost job creation and exports.