KPMG: Standard deduction increased to Rs 1 lakh due to rising expenses, inflation

New Delhi: As the Budget 2024-25 approaches, consultancy firm KPMG has outlined key expectations for the upcoming financial plan. Suggestions include doubling the standard deduction to Rs 1 lakh, increasing tax breaks on housing loan interest, and streamlining the capital gains tax regime.

With rising expenses in medical and fuel costs, there is a call to raise the standard deduction to Rs 1 lakh from the current Rs 50,000. Additionally, KPMG proposes raising the basic tax exemption limit to Rs 5 lakh to boost disposable income for spending or savings.

In light of challenges faced by the real estate sector, particularly in housing loans, KPMG recommends revisiting deductions for self-occupied housing loans and simplifying the capital gains tax structure.

Furthermore, the firm anticipates a focus on aligning customs tariff rates with industrial policies to promote value addition in India and expects ongoing changes in customs tariff rates to align with trade barriers.