Union Budget 2023: As per the rules, there is a provision to pay income tax on income above Rs 2.5 lakh. But the amount of tax made on income from Rs 2.5 to Rs 5 lakh is exempted under section 87A by the Ministry of Finance.
Union Budget 2023 Expectations: The job profession waits the most for the Union budget for income tax exemption. The general budget will be presented by Finance Minister Nirmala Sitharaman on 1 February 2023. Farmers and employed people have the highest expectations from this budget. At present, the limit of exemption from income tax is Rs 2.5 lakh. That is, a person earning up to two and a half lakh rupees annually does not have to pay any kind of tax. Like the last budget, the demand for increasing it is being made on behalf of crores of employed people this time also.
Income up to Rs 5 lakh is tax free!
However, tax rebate is available on taxable income ranging from Rs 2.5 lakh to Rs 5 lakh due to the exemption given under Section 87A. As per the rules, there is a provision to pay income tax on income above Rs 2.5 lakh. But the amount of tax made on income from Rs 2.5 to Rs 5 lakh is exempted under section 87A by the Ministry of Finance. In this way income up to 5 lakhs becomes tax free. But if your income is more than 5 lakhs, then you have to pay tax on the entire income above 2.5 lakhs.
Proposal to increase income tax exemption limit to five lakhs
This is the reason why, like before, this time also there is a demand to increase the limit of income tax exemption from Rs. 2.5 lakh to Rs. 5 lakh. On behalf of the Associate Chambers of Commerce and Industry of India (ASSOCHAM), a proposal has been given to the government to increase the income tax exemption limit from Rs 2.5 lakh to Rs 5 lakh. If this demand is accepted by the Finance Minister, then more money will come in your hands than before.
Will be announced on 1 February 2023
In the recommendation sent to the Finance Ministry, Assocham has said that the income tax exemption limit should be increased to at least Rs 5 lakh. This will save more money to spend in the hands of the common man. This will increase the buying capacity of the common man and the market will accelerate. If any kind of decision on income tax is taken by the Finance Ministry, then the Finance Minister will announce it only during the presentation of the budget on February 1, 2023.
Is it possible to increase income tax exemption
Assocham President Sumant Sinha had said during a conversation with the media in the past that a boom in both direct and indirect taxes would help in increasing the income tax exemption limit. Assocham Secretary General Deepak Sood said that leaving more money in the hands of customers will encourage consumption.
