Finance Minister Nirmala Sitharaman is going to present the country’s budget on 1 February. This budget will be the last full budget of the Modi government because after this the Lok Sabha elections are going to be held in the year 2024. Next year in 2024, the Modi government will present an interim budget.
This is the reason that the government is expected to present a populist budget, in which important announcements can be made for farmers, salary class, middle class people. Finance Minister Nirmala Sitharaman can make this important announcement in the budget for taxpayers and common people.
80C exemption on investment up to 1.50 lakhs
The Finance Minister had said a few days back that she understands the problems of the middle class. The government is considering increasing the tax exemption limit under 80C in the budget. It is believed that Finance Minister Nirmala Sitharaman may announce an increase in the 80C limit on the budget day. Savings and investment options like insurance, FDs, bonds, home loan principal and PPF come under 80C. At present, under 80C, an investment of Rs 1.50 lakh is exempted. Now it can be increased to Rs 2 lakh.
Standard deduction limit may increase
It is expected that the government may increase the standard deduction limit in the budget. From the year 2019, the standard deduction remains at Rs 50,000. It is believed that the government may increase it to Rs 1,00,000. Also, the government can increase the limit of income tax exemption. At present, income up to Rs 2.50 lakh is not taxed. The government can increase this limit.
Tax relief can be available on LTCG
Through Budget 2023, the government may provide relief in Long Term Capital Gain Tax (LTCG) to retail mutual fund and stock investors in the market. Removal of LTCG on equity will increase investment in equity. Currently, if the profit exceeds Rs 1 lakh in a financial year, then 10% long-term capital gain is levied on it. This time it is expected that the government can give some relief in this.
