The salaried class taxpayers have many expectations from the budget to be presented on February 1, 2023. In the midst of the third wave of Corona, the announcements of Budget 2023 (Budget 2023) can give great relief to the taxpayers.
The taxpayers of the salaried class are expecting changes in income tax slabs and reduction in surcharge from the upcoming Union Budget 2023-24. Let us tell you that the budget session will start on January 31 and Finance Minister Nirmala Sitharaman will present the budget on February 1.
1. More tax exemption on investment under 80C
Section 80C is the most important section for saving tax for the employed. Increasing the exemption limit under this section means that more and more people have to get relief. Please tell that at present, the exemption available under Section 80C is Rs 1.5 lakh. It is expected that in Budget 2023, under Section 80C, the government can increase the deduction limit to Rs 200,000 annually.
2. Standard deduction limit expected to be increased The standard
deduction limit for salaried employees under section 16 (ia) of Income Tax is Rs 50000 per annum. In the up
coming budget, it is expected that due to rising inflation, the government will change the provision of section 16 (IA) and increase the standard deduction limit to Rs 75,000 annually.
3. Change in tax
slab According to media reports, 25 percent tax is being demanded on income of more than 20 lakhs in tax slab. Similarly, there is a demand to increase the tax to 20 percent on the income of 10 to 20 lakhs. In the current tax slab, up to Rs 2.5 lakh is not taxed. 2.5 to 5 lakh is 5 percent, from 5 to 7.5 lakh is 20 percent tax. Similarly, 20 percent tax is levied from 7.5 lakh to 10 lakh. In which change has been demanded.
4. Deduction limit expected to increase
From Budget 2023, it is expected that the government may increase the deduction limit under Section 80CCD(1B) from Rs 50,000 to Rs 100,000 annually to encourage investment in retirement plans.
5. There will be a change in the 2 year old tax system
According to media reports, the government is considering increasing the tax exemption limit in the 2 year old tax system. This will give relief to taxpayers and they will have more money for investment.
