Budget 2023: Amidst the ever-increasing inflation in the country, this year also common people are hopeful that the central government can provide them relief from tax exemption in the budget. Tax free limit can be increased up to Rs 6 lakh.
Budget 2023: Amidst the ever-increasing inflation in the country, this year also common people are hopeful that the central government can provide them relief from tax exemption in the budget. However, the Finance Ministry has shown great strictness in this regard in the last several years. When asked by the Finance Minister about tax exemption not being given, the reply was that not imposing new tax is also tax exemption.
However, this year being the last full budget before the elections, experts' expectations regarding tax exemptions have also increased. He says that due to rising inflation, the government can give tax exemption as a relief to the common people. This will bring additional spendable money into the hands of common people. In view of the increasing diseases and their expenses after the Corona epidemic, the government may increase the scope of tax exemption available in lieu of medical expenses. Besides, the scope of tax exemption available through investment under 80C may also increase. At the same time, to promote investment in the stock market, the capital gains tax on it can be reduced. According to experts, the government will try to put as much spendable money in the hands of the common people as possible. So that the spending capacity of the people increases. Due to this, ultimately a large part of it can also return to the government treasury in the form of other taxes. In such a situation, the government will not have to put any huge burden on the treasury to give tax exemption.
Increase in minimum income tax limit possible
Tax matters expert Devendra Kumar Mishra believes that the government will definitely provide relief to the common people this time. Income of common people up to Rs 5 lakh can be further increased to Rs 6 lakh tax free. The biggest relief can be found in the category of income of Rs 15 lakh without availing tax exemption, which is kept in the bracket of 20 per cent. This can be increased to Rs 17 lakh.
Interest discount expected to increase
Apart from this, the government can also increase the limit of standard deduction for the salaried class. This figure can be increased from Rs 50 thousand to Rs one lakh. Also, the interest income can be increased from Rs 50 thousand to Rs 1 lakh for senior citizens and Rs 25 thousand for general citizens.
old tax slab
Income tax rate (in percent)
Rs 2.50 lakh 0
2.50 to five lakh 05
more than 10 lakh 30
new tax slab
Income tax rate (in percent)
2.50 to five lakh 05
5 to 7.50 lakh 10
7.50 to 10 lakh 15
10 to 12.50 lakh 20
12.50 to 15 lakh 25
more than 15 lakhs 30
(Amount in rupees, tax rate in percent)
