Some experts familiar with the process and formulation of the budget feel that expecting major changes in this budget will lead to disappointment. However, the 2023 budget may announce tax exemptions for various categories of taxpayers. The main reason behind this is said to be the last budget of the second term of the Modi government. With the 2024 Lok Sabha elections ahead, the Modi government will want to keep the common man at ease.
Originally, the discussion on income tax came up in the pre-budget meetings. In that meeting, Finance Minister Nirmala Sitharaman heard the demand for exemption from income tax. Besides, the Public Provident Fund (PPF) was also raised in pre-budget meetings. The biggest demand that has been raised is to increase the scope of PPF from 1.5 lakhs to 3 lakhs. At the same time, income tax payers also expect an increase in exemption under Section 80C. It gives concessions to common man in education loan, home loan etc.
Will the announcement of concessions in PPF be available in the budget?
Most of the experts think that Finance Minister Nirmala Sitharaman can take some big decisions for common people in this budget. A recommendation by the Institute of Chartered Accountants of India has called for increasing the annual limit of PPF from Rs 1.5 lakh to Rs 3 lakh. According to this recommendation, employees, traders, middle class invest the most in PPF, so people from many sections of the society will benefit from this decision. However, no hope has been given in this regard either by the government or by the finance minister.