Budget 2023: Five budget expectations of the salaried class from Nirmala Sitharaman
By Lokmat English Desk | Published: January 23, 2023 11:53 AM2023-01-23T11:53:21+5:302023-01-23T11:53:21+5:30
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Union Finance Minister Nirmala Sitharaman will present the budget on February 1. Taxpayers in the salaried category are expected to get relief in income tax from this budget. According to the Income Tax Department, the income tax return (ITR) filed in 2022 were ITR-1, i.e., filed by salaried individuals, which accounts for a large group of taxpayers.
Hence, such taxpayers are hoping that the government will make some special announcement for them in the 2023 budget. The government understands the pressure on the middle class. The Finance Minister had recently said that the government would take further steps for their interest.
Increase in Tax Limit – Rising inflation has increased the cost of living. In such a situation, taxpayers can expect the exemption limit of Rs 2.5 lakh to be increased to Rs 5 lakh under the new tax regime. 5 percent on salary between 2.5 to 5 lakh and 20 t on salary between 5 to 7.5 lakh.
Deduction under 80C – Taxpayers get a deduction of Rs 1.5 lakh per year under Section 80C of Income Tax. Taxpayers have demanded to increase this limit. Taxpayers will get a big relief if the government takes a decision on this in the budget. PPF, ELSS, NSC, NPS, Bank FD etc.
Standard Deduction – Under Section 16 (ia) of Income Tax, salaried class gets exemption up to standard deduction limit of Rs.50 thousand per annum. The salaried class is also expecting an increase in this. Government standard deduction limit will be increased from 50 thousand to 75 thousand.
Retirement Plan Investment - The government is also expected to increase the tax exemption limit for investing in retirement plans. It is said that the government can increase the exemption limit from Rs 50 thousand to Rs 1 lakh under Income Tax Section 80 CCD (1B).
Health Insurance Claim - The present limit for health insurance claim under Section 80D is Rs.25 thousand. It is expected that the government will increase it to Rs 50,000 in this budget. Besides, the exemption limit for senior citizens may be reduced from Rs.50,000 to Rs.75.
