Budget 2023: This year’s budget will increase the income tax exemption limit! Common people in hope – mssewb.org

Budget News 2023 : Like every year, this year also common people are looking towards the Union Budget with a lot of hopes and expectations. Common people are especially concerned about reducing income tax and thereby increasing basic income. Also, people look at the budget with multiple hopes.

One such expectation is to increase the annual tax exemption limit from Rs 2.5 lakh in current Indian currency to Rs 5 lakh per annum. Currently the tax exemption limit for taxpayers below 60 years of age is fixed at Rs 2.5 lakh per annum under both the new and old tax systems. This arrangement is effective from the financial year 2014 – 2015. Although under both the new and old tax systems no tax is payable if the resident’s income is equal to or less than 5 lakhs per annum due to exemption under Section 87A of the Income Tax Act, 1961.

The cost of living and the impact of the recent pandemic have affected the common taxpayer. Also considering the rate of inflation, it is easy to understand that the tax payers of the country are definitely feeling the impact on their cash income at present. Any move to leave more disposable income in the hands of taxpayers is therefore expected to act as a catalyst to accelerate economic recovery and encourage investment. As a result overall development is considered possible. As a result, the annual income tax exemption limit for senior citizens and super senior citizens may be increased from 5.5 lakhs per annum and 7.5 lakhs per annum to 3 lakhs and 5 lakhs per annum respectively. Through this, those whose income is below 5 lakh rupees per annum will be specially benefited.

Besides, to make the new tax system more attractive, the government may increase the annual income tax exemption limit under the new tax system from the current ₹ 2.5 lakh to ₹ 5 lakh per annum. From the government’s point of view, increasing the basic exemption limit under both the old and new tax systems will balance the potential amount of taxpayers and The subject of the assessment is the benefit and this subject will also give assurance to the Govt. As a result, there will be no need to file income tax returns mandatorily for collection of overall direct tax.

Leave a Comment