In the upcoming budget, tax experts expect the government must balance fiscal consolidation with thе dеsirе to еncouragе еconomic activity.

"Whilе wе rеcognizе thе potеntial for significant rеforms in Budgеt 2024, wе urgе caution. Wе anticipatе gradual changеs to pеrsonal incomе tax brackеts, with largе changеs likеly to bе dеlayеd until aftеr thе еlеction. Our priority is to simplify thе GST rеgimе, rationalizе еxеmptions, and provide clarity on long-tеrm capital gains tax, еspеcially rеgarding invеsting in affluеnt housing along with rеnеwablе еnеrgy. Thе govеrnmеnt can assurе long-tеrm tax stability and sustainеd growth by prioritizing specific initiativеs and dеvеloping a clеar path for future forms," said Agam Gupta, Executive Director, Share India FinCap.

Experts anticipate significant changes in Budget 2024, including simplification of income classification from stock market transactions and equity in deductions within the new tax regime.

"Firstly, the intricate nature of income classification from stock market transactions has posed ongoing challenges. The current system, with its varied categories and different tax treatments based on holding periods for financial instruments, has confused taxpayers. Simplification is a top priority, with calls to align holding periods across asset classes or introduce a unified tax rate for long-term and short-term assets. These measures aim to enhance clarity, reduce administrative complexities, and create a more user-friendly taxation system for investors. Streamlining the classification and taxation of stock market income is poised to establish a transparent and accessible financial environment, benefiting both taxpayers and system efficiency," said Abhishek Soni, CEO of Tax2win

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

"As a tax expert, I would emphasize the importance of stability in the tax regime during this interim period. While the full Budget for the fiscal year FY24-25 will be presented after the elections, expectations from the government may revolve around maintaining continuity and possibly addressing any pressing tax-related issues. Businesses and taxpayers must remain vigilant and adaptable, considering the evolving economic and political landscape. Additionally, I am hopeful for progress on the long-awaited Direct Tax Code, which could bring significant reforms and simplify the taxation system when eventually implemented," said  CA Sandeep Agrawal, Director and co-founder at Teamlease Regtech.

The Finance Minister Nirmala Sitharaman will present the Interim Budget in a joint sitting of the Rajya Sabha and Lok Sabha with no major announcements as the elections for the Lok Sabha are due early next year. The full Budget will be presented after the formation of the new government following the general elections.