Budget 2023: Finance Minister Nirmala Sitharaman will present the country’s budget on 1 February. What has he thought for the General Budget 2023-34, it will be known on February 1. However, it is necessary for the public that the Finance Minister should give some relief to them in such areas, where their expenses are increasing and those people can get some tax exemption. Here such options are being told.
Increase in Basic Tax Exemption
The Modi government has not given any relief to the people in this area in the last 7 years and the expectations of the people have gone up. There is curiosity among the people to know how much scope the central government has to provide relief to the people in the face of a general election and the epidemic seen in centuries. It was last revised in the year 2014-15. It would be absolutely correct to say that by increasing the limit of this basic tax exemption, the Finance Minister will give relief to the people and also reduce the tax burden on them.
change in income tax slab
The highest tax slab in the country is 30 per cent, which is levied on those earning more than Rs 10 lakh (old tax regime) and on those earning more than Rs 15 lakh (new tax regime). By adding surcharge and cess, this tax can be 42.77 percent, whose income is more than Rs 5 crore. This tax rate is very high as compared to other countries and in comparison to this, the highest tax rate in Hong Kong is 17 per cent and in Singapore it is 22 per cent. In Malaysia, this tax rate is 30 percent. Many people argue that this limit should be increased to those earning more than Rs 20 lakh and the tax rate, which is more than 42 percent here, should be reduced to 35 percent.
new tax regime
In the General Budget 2020-21, the government implemented a new tax regime, under which the option of paying one-time tax was kept for people to get rid of keeping account of various tax exemptions. However, till now there is no awareness among people about this and many people have remained on the old tax system only. In such a situation, a demand is being raised in front of the government that the new tax regime should be made more attractive so that the interest of the people can be generated in it.
Finance Minister should do something on the front of financial savings
The demand to increase the limit of the country’s most popular section 80C is also being made for a long time as it has not been increased for many years. Despite the exemption available on tuition fees and principal amount of housing loan, this tax exemption is only up to Rs 1.5 lakh. Under Section 80C, people get only a deduction of up to Rs 1.5 lakh, which is being demanded to be increased because the savings rate in the country has come down to 26.2 per cent in the first half of the year 2022-23, which is the lowest in 19 years. is the lower level of So clearly the government has every chance to increase the limit of this deduction, it has to be seen whether the Finance Minister accepts this demand this time or not.
Increase in interest exemption on home loan
With the rise in mortgage rates, the real estate industry has been demanding that the government increase the deduction on home loan interest from the existing Rs 1.5 lakh. In the last 7 months, as a result of RBI’s rate hike, interest rates on home loans have gone up by about 2%. Due to this, the EMI of the people has increased due to which the budget of the people’s houses is skyrocketing. Apart from this, there is another aspect that the interest rates on housing loans have not increased for years, due to which there is a demand from the Finance Minister to pay attention to this as well.
increasing the standard deduction
Earlier, the government used to give Rs 40,000 under this standard deduction, but it was increased to Rs 50,000. Transport allowance and medical reimbursement under this were adjusted in this. However, due to the ever-increasing prices of vehicle fuel and rising prices of medicines, the expenditure of the people has increased further. Due to this, the Finance Minister can help the people better by giving some relief in the head of this standard deduction.
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