Union Budget 2023: After 2014, the Modi government is going to present its 10th full budget that the limit of income tax exemption which was in 2014 remains the same in 2023.
Budget 2022-23: On February 1, 2023, Finance Minister Nirmala Sitharaman will present the budget. She is presenting this budget at a time when everyone is under the burden of inflation. Especially the salaried people who are troubled by inflation, as well as the loan has also become expensive for them. Along with inflation, expensive EMI is robbing people’s pockets. Heavy tax burden on him. In such a situation, the question arises whether the Finance Minister will take any major step to give relief from inflation and reduce the tax burden on the people? Will the Finance Minister increase the income tax exemption limit from Rs 2.5 lakh to Rs 5 lakh in the upcoming budget?
Income tax burden on salaried people.
At present, those whose annual taxable income is up to Rs 2.5 lakh do not have to pay any tax on this income. Those whose income is between Rs 2.50 to Rs 5 lakh, then they are liable to pay tax at the rate of 5% i.e. Rs 12500. But under Rule 87A of Income Tax, the government gives a tax rebate of Rs 12,500. That is, those whose taxable income is less than Rs 5 lakh do not have to pay any tax. But those whose taxable income is more than Rs 5 lakh by even one rupee, they do not get the benefit of this rebate. Such people are not only worried about inflation, but they are also worried about the cost of EMIs after increasing the repo rate of RBI. On top of that expensive food items, inflation of milk, expensive LPG, petrol-diesel and CNG-PNG have ruined the budget.
Tax exemption limit should be Rs 5 lakh!
According to Ved Jain, former president of ICAI, in 2014, the minimum tax slab limit was Rs 2.50 lakh and the maximum limit was Rs 10 lakh. But it has been so many years that no change has been made in the minimum and maximum level of the tax slab. He said that now the time has come to give relief to the people by changing the income tax slab. He said that the income tax exemption limit should be increased from Rs 2.50 lakh to Rs 5 lakh annually. Also, the maximum limit of tax slab should be increased from Rs 10 lakh to Rs 20 lakh. Currently, taxable income above Rs 10 lakh is taxed at 30 per cent.
Changes in tax slabs will benefit the economy
According to Ved Jain, the Indian economy has developed tremendously after 2014. BSE Sensex and NSE Nifty have touched new heights. There has been a tremendous jump in the tax collection of the government. Consumption has also increased during this period. But there is one thing in which the government has not changed that is the income tax slab. No change has been made in the tax slab during this period. He said that the government’s effort is to increase the tax base, due to which the number of people filing income tax returns has increased. This is the reason why the government has not made any change in the minimum slab rate of income tax. He said that if the government increases the tax slab, then taxpayers will spend the savings in the form of tax and invest in the purchase of essential things, which will benefit the economy. This will accelerate the economic development of the country.
