Budget 2023 Will Provide Relief To Middle Class In Many Front Like Income Tax And Standard Deduction.
Budget 2023 will Provide relief to middle class: In the last full budget of the second term of the Narendra Modi government, the Finance Ministry is considering proposals to benefit the middle class. Finance Minister Nirmala Sitharaman will present the budget in the Lok Sabha on February 1, 2023. Sources said that the Finance Ministry is considering such proposals sent by various government departments, which will benefit a large section of the middle class. It can be announced in the budget.
There is a need to increase income tax exemption limit and standard deduction – experts
The government has not yet raised the income tax exemption limit of Rs 2.5 lakh, which was set by the then Finance Minister Arun Jaitley in 2014 while presenting the first budget of that government. Along with this, the standard deduction remains at Rs 50,000 from 2019. Many experts believe that there is a need to increase the income tax exemption limit and standard deduction to provide relief to the salaried middle class in the high level of inflation.
Raised hopes in the minds of the middle class
A recent statement by the Finance Minister raised hopes in the middle class that they might get some relief in the upcoming budget. The Finance Minister had said that he was aware of the pressure on this section. She had said, “I am also from the middle class, so I understand the pressure on this class. I consider myself with the middle class, so I know.”
Nirmala Sitharaman had said, “I understand these problems. The government has done a lot for them and is continuously doing it.”
Possibilities of increasing the investment exemption limit are also being considered.
Apart from tweaking the exemption limit and standard deduction, the Finance Ministry is also considering the possibilities of increasing the investment exemption limit under 80C. It includes life insurance, FD, bond, home loan and PPF and other services. Currently, under this, there is a rebate on investment up to Rs 1.50 lakh. Sources said payment for health insurance premium is also being considered. The government may also ease capital gains tax rules to benefit investors. This will benefit investors coming from the middle class.
Read This Also:Budget Expectations Awas Yojana