How will you get big relief from income tax? Taxpayers rely on these 4 things in Budget 2023
Nirmala Sitharaman will open the budget box on february 1. Know why taxpayers have so much hope from the budget this time.
There are some expectations from this budget like increase in standard deduction, relief in income tax, exemption in section 80C. Let us tell you that it has been a long time since the change in income tax slab rates. For salaried individuals and pensioners, standard deduction is allowed for deduction from gross salary income. This deduction reduces the taxable salary income of the individual, as well as reduces his tax burden.
Under the pre-tax structure, which is still used by the bulk of filers, 50,000 deduction is available to all salaried employees.
Salaried individuals can avail the Section 80C exemption to reduce their taxable income up to Rs 1.5 lakh in a financial year. It is expected that the 80C limit has to be raised to at least Rs 2,00,000 to meet today's requirement. Finance minister Nirmala Sitharaman had announced a new, alternative tax regime while presenting the Budget 2020. However, only a few people have been able to adopt the new tax system so far.
Amit Gupta pointed out that, “The lowest personal income tax bracket is 5%, while the highest is 42.74 per cent, which includes surcharge and cess. An increase in the basic exemption level between Rs 2.5 lakh and Rs 5 lakh, as well as a cut in income tax rates in Budget 2023, is needed to bring down the maximum slab rate to 25%."
Archit Gupta told that some relief should be given to individual taxpayers who are setting up home office for work from home.
We will have to wait till february 1, 2023 to see how many of these will be completed.
