Budget Expectations: Salaried class employees can expect exemption from the Finance Minister on the basis of both income tax exemption limit and tax slab.
Salaried Employees Expectations: The maximum share of the tax received by the government in the country is from the salaried class. But they get exemption from very little income tax. This time, the job profession is sitting with a lot of hope from the budget 2023. This time the budget will be presented by Finance Minister Nirmala Sitharaman on 1 February 2023. Although some experts also say that this will not be a populist budget.
Modi government’s last budget before elections
Sumit Mangal of Luthra & Luthra Law Office India says that this time salaried class employees can expect exemption on the basis of both income tax exemption limit and tax slab. He said that taxpayers can be given relief in the 2023 budget by increasing the base of standard deduction or investment exemption limit. Actually, the budget 2023-24 (Budget 2023-24) will be the last union budget of the Modi government before the 2024 elections. In such a situation, it is expected that it can be tempting for taxpayers.
Expectation of new announcements in the budget
In view of the elections, the government can make new announcements in this budget to attract the job profession. However, it is also worth noting that the Indian economy has started recovering from the worst of the Covid-19 pandemic. The focus of the government will be on presenting the budget with emphasis on economic development. According to experts, the salaried clause can make these hopes in the 2023 budget.
Increase in HRA
Housing Rent Allowance (HRA) can be increased by the government to adjust the increased rent after work from home culture and Kovid. However, many offices have started the facility of working on hybrid mode or from the office itself.
80C limit may increase
In order to attract the salaried class paying income tax, the special tax regime can be changed by the government. Apart from this, the investment limit under section 80C can also be increased. The investment limit under 80C was increased 8 years ago. After that no relief was given in it. It is expected that it can be increased up to Rs.2.5 lakh.
Tax incentive for salaried class
A big announcement can be made regarding standard deduction in the budget 2023 for the salaried class. It is expected that the government can increase the current limit of Rs 50,000 to Rs 80. This hope is also high because the salaried class did not get anything special from the previous budget.
Work from home allowance
During the Kovid-19 epidemic, many companies had started the ‘work from home’ culture. During this time many things changed. Work from home allowance can be announced by the government in this budget.
Possible change in income tax exemption limit
According to experts, the basic exemption limit of income tax can be increased from Rs 2.5 lakh to Rs 3 lakh. There has been no change in this for a long time. After this change, the tax burden on the salaried class will be reduced.
