New Delhi: The Union Budget for 2024-25 will be presented in Parliament on July 23, 2024 at 11 am. It had earlier presented the interim budget on February 1 in view of the 2024 Lok Sabha elections. This is the first budget of the BJP-led NDA government since it was re-elected last month. President Droupadi Murmu has formally approved the budget session that begins on July 22 and will continue till August 12.

This year, Finance Minister Nirmala Sitharaman will become the first finance minister in India’s history to present seven consecutive budgets, breaking the record previously held by Morarji Desai, who presented six consecutive budgets between 1959 and 1963.

According to Article 112 of the Constitution, the government must submit to Parliament a statement of estimated income and expenditure for each budget year, which runs from 1 April to 31 March.

The income tax relaxation is given by the Union Government in 3 ways: exemption, deduction and rebate. According to experts, these 3 terms have their own connotation and meaning which is different from the others.

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Tax exemption: Income tax exemption means that no tax is levied. Currently, income tax is exempted up to a total annual income of Rs 2.5 lakh. Various exemptions have been granted under the Income Tax Act, 1961.

Tax deduction: Income tax deductions refer to specific deductions for which a taxpayer is eligible on account of investments made (Section 80C) or amounts spent (Section 80D or Section 80E). Tax exemption means that no tax is levied on the income, tax deduction is a reduction of the taxpayer’s gross income on which tax is calculated.

Tax returns: Tax refund is different from exemption and deduction. Under refund, a limit is fixed up to which the income is tax-free under Section 87A of the Income Tax Act, 1961. However, if the annual income exceeds the limit, tax has to be paid on the entire income tax.

For example, income tax refund is currently given up to an income of Rs 5 lakh. So, if an individual earns an income of Rs 5 lakh, the entire income is tax-free. However, if the annual income is Rs 5.1 lakh, then tax is levied on the entire Rs 2.6 lakh (as income up to Rs 2.5 lakh is exempt).