Budget 2023: In the new year, a new budget will also be presented by the central government. At the same time, different businesses are demanding better announcements in the budget for themselves.
Meanwhile, industry body Assocham has made an important demand from the government in its pre-budget recommendations. This demand can affect crores of taxpayers of the country. Actually, Assocham has demanded the government to increase the scope of exemption in income tax. If this demand is accepted by the government, then taxpayers are going to get benefited.
ASSOCHAM has urged the government to increase the income tax exemption limit to at least Rs 5 lakh so that more disposable income remains in the hands of the consumers and boost consumption in the economy. At present, according to the income tax slab, no tax is levied up to Rs 2.5 lakh annually. At the same time, rebate is achieved on annual income of Rs 2.5 lakh to Rs 5 lakh.
Income tax exemption limit
Assocham President Sumant Sinha said that the boom in both direct and indirect taxes should give enough room to the government to increase the income tax exemption limit. The government must respond to the proactive steps that other countries are taking to support the production of green hydrogen as India strives to become a major energy producer.
Income Tax He said that now the total income up to Rs 2.50 lakh is exempted from income tax. However, if the total income in a year is up to Rs 5 lakh, then the income up to Rs 5 lakh can be exempted. If the income exceeds Rs 5 lakh, the entire amount (excluding the exemption limit of Rs 2.50 lakh) is taxed.
To increase Atmanirbhart job and promote green economy, attention should be given to sustainable and green industries. He said that economic security is bigger than manufacturing security. Pursuing green economy, achieving energy independence, investing in green industries and reducing the use of fossil fuels are all steps towards Atmanirbhart.
Deepak Sood, Secretary General, Economic Development
Assocham, said that promoting consumption by leaving more money in the hands of consumers would be a better decision for further improvement in economic growth. At the same time, along with consumption, the other way of sustainable development will be to further promote investment. In this direction, Assocham said that 15 percent corporate tax rate for new investment in manufacturing sector can be applied in all sectors including services.
