The central government is preparing to give gifts to taxpayers in the budget 2023 this year. According to a report published in Reuters, the government may make changes in the income tax slab in this year’s budget 2023-24.
Reuters has given this report citing two government sources. However, the Finance Ministry did not respond to an email sent by Reuters in this matter. It has been told in the report that this time the limit of income tax exemption can be increased from 2.5 lakh to 5 lakh.
At the same time, many people are also saying that the income tax rates and slabs which were applicable in the assessment year 2022-23, can remain applicable in the new assessment year (AY 2023-24) as well. Let us tell you that Finance Minister Nirmala Sitharaman will present the budget on 1 February 2023.
Income up to 2.5 lakh is tax free.
If the income tax limit is increased by changing the income tax slab, then the maximum benefit will be to the employed people and small businessmen. Currently, no tax is payable on income up to Rs 2.5 lakh. Income up to Rs 3 lakh for persons in the age group of 60-80 years and Rs 5 lakh for senior citizens above 80 years of age is tax free.
Tax exemption limit may be 5 lakhs
According to media reports, this time the limit of 2.5 lakhs can be increased to 5 lakhs. If this happens, then you will not have to pay any income tax if your annual income is up to 5 lakhs. Apart from this, it is necessary to file ITR for those earning more than 2.50 lakhs. After this this limit will be 5 lakhs.
There has been no change in the income tax slab for the last 9 years. The last time in the year 2014, the government increased the income tax exemption limit. This change was the first general budget of the first term of the Narendra Modi government. Now in the year 2023, Finance Minister Nirmala Sitharaman will present the last full budget of the second term of the Modi government. The Finance Minister can present the Union Budget on February 1, 2023.
