The income tax slab of India was last revised in 2014 when the Narendra Modi government came to power. The tax revisions were directed at providing relief to the middle class. However, high inflation rates over the years have led many middle-class citizens to demand further tax benefits. Let us see what experts speculate as far as the upcoming budget is concerned.
Pensioners and those who make a living off salaries are hoping that the forthcoming budget enhances the standard deduction. A discount of Rs 50,000 is currently being offered. According to experts, the cost of living has increased as a result of inflation. Consequently, it is anticipated that the budget will boost the standard deduction.
For the longest period, the tax exemption limit available under Section 80C of the Income Tax Act (Section 80C exemption) is Rs 1,50,000. It is expected that this time Nirmala Sitharaman will fulfil the long-standing demand of income taxpayers to increase it. It can be increased to Rs 2,00,000, experts hope.
Giving average taxpayers individual tax relief has long been advocated by financial experts. They contend that the government ought to provide this relief by lowering tax rates or changing the tax slabs. Experts hope the upcoming budget makes various taxes more progressive and efficient. The tax slab could vary, and the amount that can be exempt from income tax might also increase.
Working from home became the new normal after the COVID-19 pandemic. Many are continuing as it has proven beneficial for both the employer and the employee. Budget 2023 is expected to provide tax exemption to salaried people who set up work from home.
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