Finance Minister Nirmala Sitharaman will present the country’s budget on 1 February. For which all the people of the country wait because it affects the lives of the people. What are the expectations of Taxpayer from the upcoming budget, let us know in this report….
New Delhi: Union Finance Minister Nirmala Sitharaman will present Budget 2023 on 1 February. Salaried professionals are among the taxpayers expecting relief from the budget. According to the Income Tax Department, nearly 50 per cent of the Income Tax Returns (ITRs) filed in 2022 were filed by salaried professionals. These taxpayers hope that Budget 2023 will provide long-term benefits in healthcare and retirement, as well as affordable housing in the post-pandemic era. Experts also predict that the government will focus on expanding employment and tax base to increase disposable income in hand.
A look at the major expectations of salaried employees from Budget 2023
Tax slab
taxpayers are expecting an increase in the existing tax slab to Rs 5 lakh with a basic exemption limit of Rs 2.5 lakh income under the old and new tax regime keeping in view the rising inflation and cost of living. The limit of ₹ 2.5 lakh remains unchanged from 2014-15. Significantly, according to the new tax slab, zero tax on earning up to 2.5 lakhs, 5% (exemption under 87A) on 2.5-5 lakhs, 10% on 5-7.5 lakhs, 15% on 7.5-10 lakhs, 10-12.5 20% tax on 12.5-15 lakhs, 25% on 12.5-15 lakhs and 30% tax on income above 15 lakhs.
| tax system | |
| Income Tax Slabs (RS) | Rate |
| Income up to 2.5 lakh | zero tax |
| 2.5-5 lakh income | 5% tax |
| 5-7.5 lakh income | 10% tax |
| 10-12.5 lakh income | 20% tax |
| 12.5-15 lakh income | 25% tax |
| Income more than 15 lakhs | 30% tax |
Tax exemption limit for
home buyers Home buyers can now claim an annual deduction of up to Rs 2 lakh on interest paid on home loan EMIs under Section 24B. You can claim a deduction of up to Rs 1.5 lakh under Section 80C for the principal amount paid on the loan. The salaried class is looking forward to raising the 24B limit to ₹ 5 lakh and the section 80C limit to ₹ 3 lakh.
Rebate on
personal loan is expected to be an incentive for personal loan borrowers as currently there is only exemption limit on interest on education loan under section 80E of the Income Tax Act. Salaried taxpayers are looking forward to benefits in superannuation, maternity post-retirement and housing rent keeping in mind the work-from-home era. The deduction limit of Rs 1.5 lakh under the existing section 80C may also increase.
Uniform Capital Gain
Taxation Budget 2023 envisages a uniform tax structure for capital gains. To enhance investment, savings and wealth creation. More incentives and discounts could be on the cards to increase disposable income.
