Budget 2023: The general budget is going to be presented on 1 February. In such a situation, the government can give a big gift to the salaried class.
The government can adopt some different methods to provide relief to the middle class people from inflation. For this, experts are also expressing the hope that these 5 announcements will be made in the budget. Maximum income tax comes from the salaried class only. In such a situation, even if the Finance Minister announces an increase in the tax limit, it will not be surprising. Apart from this, the standard deduction is also expected to increase.
Tax limit will increase
Inflation is increasing day by day. In such a situation, the cost of living is also increasing. In such a situation, the government can give income tax exemption of five lakh rupees to income tax payers under the new tax system. At present, 5% tax has to be paid on income of Rs 2.5 to Rs 5 lakh and 20% tax on income of Rs 5 to 7.5 lakh.
Standard deduction will change
The salaried class can avail exemption of Rs 50,000 under standard deduction every year. It is believed that the government can make changes in section 16 (ia) of income tax. It is expected that the limit of this standard deduction can be increased from Rs 50,000 to Rs 75,000.
Exemption will be available in 80C
Under Section 80C of the Income Tax Act, taxpayers can get tax exemption by investing an amount of Rs 1.5 lakh. Taxpayers have been demanding to increase this limit for a long time. If the government takes a decision on this matter in this budget, then taxpayers are going to get a big relief. This investment can be done in EPF, PPF, ELSS, NSC, NPS, Bank FD.
Invest for retirement
Employed people always invest in retirement plans. In such a situation, the government can increase the limit of tax exemption in this also. Experts are of the opinion that the government can increase this limit to one lakh rupees under section 80CCD (1B) of the Income Tax Act.
Health Insurance
At present, there is a rebate of Rs 25 thousand under the health insurance claim. It is expected that in this budget the government will increase it to 50 thousand rupees and for the elderly it can be increased from 50 thousand to 75 thousand rupees.
