Govt likely to raise income tax exemption limit from Rs 2.5 lakh to 5 lakh

In the upcoming budget for 2023–24, the Union government is allegedly expected to increase the income tax exemption limit from the current Rs 2.5 lakh to Rs 5 lakh. If this comes into being, the consumers will have more disposable income in their hands. Additionally, it would also enhance consumption, which could help the economy to recover, sources privy to developments said. They further claimed that the move would also promote investments.Notably, the exemption threshold is Rs 3 lakh for people between the ages of 60 and 80, and Rs 5 lakh for senior citizens over the age of 80. According to sources, the move would also promote investments. 

Meanwhile, Sitharaman recently hinted that the forthcoming Union Budget will continue to push growth on the back of public spending, and will "follow the spirit" of previous budgets. She also unveiled a massive public spending programme to support the economy, emerging out of the Covid-19 pandemic. The finance minister had also raised capital expenditure by 35.4% for the financial year 2022-23 to Rs 7.5 lakh crore to boost demand, while the capex last year stood at Rs 5.5 lakh crore. The budget 2023-24 will be presented in the backdrop of many institutions, including the Reserve Bank, slashing India's growth forecast to 6.8 per cent or so for the current fiscal. The RBI projected the real GDP growth for 2022-23 at 6.8 per cent, with the third quarter at 4.4 per cent and the fourth at 4.2%