None
Skip to mainThe Union Budget 2023-24 is going to be presented on Wednesday, February 1, and people are waiting to get to know the announcements on the income tax rates and slabs. Currently, analysts are expecting an increase in the income tax exemption limit, apart from higher deduction limits.
More Tax Exemption or Rebate
Last year, the government did not announce any new provision in the Budget 2022-23. Now, in the Budget 2023, there is an expectation that the government might give relief to individual taxpayers by raising tax exemption or rebate limit. Salaried employees are one of the major tax contributors in India. Their salary is tax-exempt up to Rs 2.5 lakh a year. Income tax is levied on taxpayers on the basis of a slab system.
Also, If the total salary is below Rs 5 lakh in a year, it is also tax-free. However, it is a rebate under Section 87A, not an exemption. If the salary goes above Rs 5 lakh in a year, the tax on the whole amount except the exemption limit of Rs 2.5 lakh will be applicable. Now, there are demands for raising the exemption limit to Rs 5 lakh.
Increased Tax Deduction Limit
In the Budget 2022-23, there are demands of raising the deductions limit under Section 80C, compared with Rs 1.5 lakh currently. Income tax deductions are related to specific deductions that a taxpayer is eligible for on account of investments made (Section 80C) or sum expended (Section 80D or Section 80E).
The real estate sector is also urging the government to provide a separate deduction for realty purchases, apart from Section 80C. The current 80C limit was fixed about a decade ago.
More Home Loan Tax Incentives
There are also expectations around an increase in tax exemptions on home loan principal and interest payments.
“The maximum tax deduction that can be claimed on a home loan interest payment is Rs 2 lakh per FY on a self-occupied property. However, property prices across the country have risen in the past five years. The country has also seen inflation of 6-7 per cent over the years. Noticing the present price bands of houses, the tax saving cap of Rs 2 lakh on housing loans as per section 24(b) needs to be increased. The limit needs to be hiked to at least Rs 3 lakh, regardless of the property’s price," Abhishek Soni, CEO and co-founder of Tax2win, has said.
LTCG Tax Relief
There also also expectations that the government should provide long-term capital gains (LTCG) tax relief to retail mutual fund and stock investors in the market through Budget 2023.
“It will be beneficial to remove LTCG on equities, which is currently at 10% if the capital gain is more than Rs 1 lakh in a financial year. It would also be ideal to introduce tax exemption on STCG up to Rs 1 lakh," Maheshwari said.
Tax Incentives On Insurance
In the Budget 2023, industry players are also expecting to extend tax incentives on insurance. Industry players said that the Union Budget is an opportunity to introduce new reforms for the betterment of the citizens and the nation at large. As the life insurance sector, our paramount interest has always been to insure more citizens and ensure they have the apt coverage.
🕑 26 Jul, 2024 09:58 AM
44.8% DA for CPSE IDA employees in 2017 pay scales
🕑 26 Jul, 2024 09:56 AM
217.8% DA for CPSE IDA employees in 2007 pay scales
🕑 26 Jul, 2024 09:52 AM
436.5% DA for CPSE IDA employees in 1997 pay scales
🕑 26 Jul, 2024 09:34 AM
Revised DA rated for CPSEs following IDA pattern of 1987 and 1992 Basis
🕑 24 Jul, 2024 09:38 AM
Lok Sabha Q&A : Restoration of Old Pension Scheme is not under consideration
🕑 23 Jul, 2024 12:43 PM
Relief for IT payers in the new tax regime
🕑 23 Jul, 2024 12:04 PM
Budeget 2024 : Updates
🕑 22 Jul, 2024 04:42 PM
No proposal to constitute 8th Central Pay Commission: Govt in Lok Sabha
🕑 22 Jul, 2024 04:39 PM
Centre lifts ban on govt employees joining RSS activities
🕑 13 Jul, 2024 02:31 PM
7 point charter of demands by confederation: 8th CPC, OPS, DA arrears...
🕑 23 Jun, 2024 08:47 AM
8th Pay Commission: How much pay hike central govt employees expect?
🕑 20 Jun, 2024 05:59 PM
Finance Minister May Increase Income Tax Exemption in Budget 2024
🕑 18 Jun, 2024 03:34 PM
The Impact and Expectations Surrounding the 8th Central Pay Commission
🕑 07 Jun, 2024 10:13 AM
Indian Members of Parliament: Compensation and Benefits
🕑 10 Apr, 2024 08:35 AM
Kendriya Vidyalaya Sangathan Admission Guidelines 2024-2025
🕑 05 Apr, 2024 01:23 PM
Kendriya Vidyalaya Balvatika Admission Schedule - 2024-25
🕑 02 Apr, 2024 09:25 AM
Kendriya Vidyalaya Admissions Open for 2024-25: Key Dates & Appln Process
🕑 01 Apr, 2024 09:23 AM
Kendriya Vidyalaya (KV) schools where Balvatika is functioning
🕑 14 Mar, 2024 02:07 PM
Govt bans 18 vulgar 18 OTT. See the list here