Industry body ASSOCHAM has demanded the government to double the income tax exemption limit to Rs 5 lakh in Budget 2023. Assocham President Sumant Sinha said that there has been improvement in tax collection due to which the government has scope.
The preparations for Budget 2023 are going on in full swing. Industry body Assocham has demanded the government to double the income tax exemption limit in the next budget. Assocham said that if the tax exemption limit was increased from the present Rs 2.5 lakh to Rs 5 lakh, then the demand would increase. This will support the economy. At present, there is no tax on income up to 2.5 lakhs. This limit is Rs 3 lakh for senior citizens and Rs 5 lakh for super senior citizens i.e. elders above 80 years of age.
Companies are now insisting on increasing capacity
Assocham President Sumant Sinha told the media that companies in sectors like steel and cement are now planning to increase capacity. Talking about the risks, he said that there could be a global recession and this would affect foreign trade. In such a situation, India’s Gross Domestic Product (India GDP) can also be affected.
It is necessary to pay money for the expenses in the hands of the consumer.
In its pre-budget recommendations, Assocham said the government should increase the income tax exemption limit to at least Rs 5 lakh, so that more disposable income is left in the hands of consumers. The industry body said that this should boost consumption in the economy.
Scope for exemption from improvement in tax collection
Sinha said that due to the increase in both direct and in-direct taxes, the government has enough scope to increase the income tax exemption limit. Assocham Secretary General Deepak Sood said, “Leaving more money in the hands of consumers will encourage consumption, which will have a positive impact on economic growth.”
